Darnell and Eleanor are building their portfolios. Darnell purchases shares in a mutual fund and pays fees to a manager who actively manages the mutual fund's portfolio. He does so because he believes that the manager can identify inexpensive stocks that will rise in value. Eleanor is not convinced. She buys shares in an index fund—a type of mutual fund that simply buys all of the stocks in a given stock index rather than actively managing a portfolio. Eleanor builds her portfolio based on the notion that: a. All stocks are overvalued.
b. The stock market exhibits informational efficiency.
c. Stock analysts can use fundamental analysis to identify undervalued stocks.

b. The stock market exhibits informational efficiency.

Explanation:

According to the efficient market hypothesis, it is believed that share prices reflect all information and consistent alpha generation is impossible. So, if Eleanor buys shares from an index fund, she believes shares are efficiently priced.

On the other hand, Darnell is buying under valued stocks with the hopes of earning a positive alpha

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi

answer/// the grapefruit that guarantees you will loss five pounds a week;