# It is difficult for an actively managed investment fund to outperform an index fund because ? with Answer - Economics Mcqs | TestPrep

> Solved MCQ: It is difficult for an actively managed investment fund to outperform an index fund because ? Correct Answer: D. actively managed funds trade more often and charge fees for their alleged expertise. Verified answer explanation for FPSC, PPSC, MDCAT, NTS, and CSS competitive exam preparation.

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# It is difficult for an actively managed investment fund to outperform an index fund because ?

Direct Answer & Quick Reference

The correct option is **D. actively managed funds trade more often and charge fees for their alleged expertise**.

A. stock markets tend to be inefficient

B. all of these answers

C. index funds are able to buy undervalued stocks

D. actively managed funds trade more often and charge fees for their alleged expertise **(Correct Answer)**

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Verified Key: D. actively managed funds trade more often and charge fees for their alleged expertise
Solved by 5,186+ students

Verified against official examination board answer keys and standard curriculum textbooks.

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