Mutual funds are run by managers who try to pick stocks and charge management fees are examples of active investment. Similarly, mutual funds that mimic a broad stock market index, or index funds, are examples of passive investment.

Which of the statements concerning active or passive investment are true? Check all that apply

o The efficient markets hypothesis hardly ever holds true for investors

o High management and administrative fees for active investments are worth it.

o Over the long run, passive investment almost always beats active investment