Which of the following statements is correct? ...

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Finance

Which of the following statements is correct?

A passively managed investment fund takes advantage of the market's inefficiency.

An actively managed investment fund is trying to earn abnormal returns by tracking the market index.

A passive investment strategy is based on the outcome of the Capital Asset Pricing Model.

An active investment strategy uses the Capital Asset Pricing Model to predict the future stock returns to outsmart the market.

None of the above.

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