QuestionJuly 16, 2025

According to the book "Monkey Business" by Scott Woolley: the pros can always beat the market. Investors should follow their advices. the pros can't beat the market. Investors should follow their advices anyway. If the pros can't beat the market, then index funds that provide the market return become a prudent proposition for investors. the pros can beat the market, but their fees are too high.

According to the book "Monkey Business" by Scott Woolley: the pros can always beat the market. Investors should follow their advices. the pros can't beat the market. Investors should follow their advices anyway. If the pros can't beat the market, then index funds that provide the market return become a prudent proposition for investors. the pros can beat the market, but their fees are too high.
According to the book "Monkey Business" by Scott Woolley:
the pros can always beat the market. Investors should follow their advices.
the pros can't beat the market. Investors should follow their advices anyway.
If the pros can't beat the market, then index funds that provide the market return become a prudent proposition
for investors.
the pros can beat the market, but their fees are too high.

Solution
4.6(260 votes)

Answer

Index funds are a prudent proposition when pros can't beat the market or charge high fees. Explanation 1. Analyze the Statements The statements present different perspectives on whether professional investors can consistently outperform the market and the implications for investors. 2. Evaluate Each Perspective 1. If pros can always beat the market, following their advice may be beneficial. 2. If pros can't beat the market, index funds are a prudent choice as they offer market returns with lower fees. 3. If pros can beat the market but charge high fees, the net benefit may be reduced, making index funds more attractive. 3. Conclusion Based on Analysis Index funds are generally recommended if pros can't consistently beat the market or if their fees negate potential gains.

Explanation

1. Analyze the Statements<br /> The statements present different perspectives on whether professional investors can consistently outperform the market and the implications for investors.<br /><br />2. Evaluate Each Perspective<br /> 1. If pros can always beat the market, following their advice may be beneficial.<br /> 2. If pros can't beat the market, index funds are a prudent choice as they offer market returns with lower fees.<br /> 3. If pros can beat the market but charge high fees, the net benefit may be reduced, making index funds more attractive.<br /><br />3. Conclusion Based on Analysis<br /> Index funds are generally recommended if pros can't consistently beat the market or if their fees negate potential gains.
Click to rate:

Similar Questions