a. If you talk to a broker selling the high-fee mutual fund, what will he or she probably tell you when you ask them, “Am I getting my money’s worth when I pay your high fees?”

b. According to Figure 23.1, is your broker’s answer likely to be right most of the time?

Figure 23.1

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FIGURE 23.1 100 80 60 40 20 0 T 1 1 T I 87 81 35 33 8 24 77 89 33 85 84 47 71 56 15 31 20 53 37 38 60 78 1747676 59 Percent of Mutual Funds Outperformed by the S&P 500 82 64 45 46 40 78 85 75 90 83 1963 1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997