Notable Findings on Mutual Fund Performance

Explanation

All of these are true as a result of research.

Let's go through each answer choice and analyze whether it is a true statement concerning the empirical evidence of mutual fund performance:

A. less than 32 percent of the funds outperform the DJIA: This statement suggests that less than 32 percent of mutual funds outperform the Dow Jones Industrial Average (DJIA), a widely followed stock market index. If this statement is true, it implies that the majority of mutual funds fail to outperform the DJIA. However, without specific data or context, it is difficult to determine the accuracy of this statement. It's important to note that the performance of mutual funds can vary widely, and some funds may indeed outperform the DJIA while others may not.

B. risk measures increase as fund objectives become more aggressive: This statement suggests that as mutual fund objectives become more aggressive, the associated risk measures also increase. Generally, more aggressive investment objectives, such as seeking higher returns, are associated with higher levels of risk. Therefore, this statement is generally true as it aligns with the principles of investing.

C. none of these answers are true: This statement implies that none of the answer choices provided are true. It is possible that one or more of the answer choices could be true, so this statement is not accurate.

D. more aggressive funds outperformed more conservative funds: This statement suggests that mutual funds with more aggressive investment strategies tend to outperform more conservative funds. Again, the accuracy of this statement depends on specific data and context. While it is possible that some aggressive funds may outperform conservative funds, it is not universally true. Performance can vary depending on factors such as market conditions, fund management, and investment strategies.

E. good performance is associated with low expense ratios: This statement suggests that mutual funds with low expense ratios tend to deliver good performance. In general, lower expense ratios can benefit investors by reducing costs and increasing net returns. Therefore, this statement is generally true as lower expenses can potentially contribute to better overall performance, assuming other factors remain constant.

F. successful market forecasting was not accomplished overall by fund managers: This statement implies that, on average, fund managers have not been successful in accurately forecasting market movements. Market forecasting is a challenging task, and studies have shown that consistently accurate market timing is difficult to achieve. Therefore, this statement is generally true, indicating that fund managers have struggled to achieve successful market forecasting on a consistent basis.

G. all of these answers are true: This statement suggests that all of the answer choices provided are true. However, as discussed above, some of the answer choices are not universally true, and their accuracy depends on specific data and context. Therefore, this statement is not accurate.

In conclusion, the answer to the question "Which is not a true statement concerning the empirical evidence of mutual fund performance?" is option C: none of these answers are true.