Question

________ enables mutual funds to consistently outperform a randomly selected group of stocks. managerial expertise diversification denomination intermediation none of these

Answer 1

Diversification is the answer.

Explanation;

Diversification is the practice of spreading investments across a variety of different assets to reduce risk. By diversifying, investors can reduce the impact of any one investment on their overall portfolio. This can help to protect against losses and increase the likelihood of achieving long-term investment goals. In the context of the given statement, diversification suggests that a portfolio of stocks that is diversified across different sectors and industries is more likely to outperform a randomly selected group of stocks.