Question: 4. In class, we saw that active fund managers broadly deliver returns less than the returns of their benchmarks (slide 14 of the annotated Slide

4. In class, we saw that active fund managers broadly deliver returns less than the returns of their benchmarks (slide 14 of the annotated Slide Deck: Investment Companies, Part 2, posted on BB Learn). Try to come up with several explanations for this return differential. Which explanation strikes you as the most probable?

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