Suppose you are 28 and married. You and your spouse file for income taxes jointly. You are in the 25% tax bracket. You are considering a few personal investment issues. Suppose you believe that the security market is at efficient in the semi-strong form. You are considering buying some mutual fund shares in your investment accounts. Which of the following statements is correct? a. Actively managed funds are good choices because they may consistently beat the market, they are tax efficient and have lower expenses. b. Actively managed funds are not good choices because they cannot consistentlybeat the market although they are tax efficient and have lower expenses. c. Index funds are not good choices because they are not tax efficient, their management fees are higher although actively managed funds cannot consistently beat the market. d. Index funds are good choices because they are tax efficient and have lower expenses and because actively managed funds cannot consistently beat the market.
Suppose you are 28 and married. You and your spouse file for income taxes jointly. You are in the 25% tax bracket. You are considering a few personal investment issues.
Suppose you believe that the security market is at efficient in the semi-strong form. You are considering buying some mutual fund shares in your investment accounts. Which of the following statements is correct?
a. Actively managed funds are good choices because they may consistently beat the market, they are tax efficient and have lower expenses.
b. Actively managed funds are not good choices because they cannot consistentlybeat the market although they are tax efficient and have lower expenses.
c. Index funds are not good choices because they are not tax efficient, their management fees are higher although actively managed funds cannot consistently beat the market.
d. Index funds are good choices because they are tax efficient and have lower expenses and because actively managed funds cannot consistently beat the market.
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