QUESTION 35

1. In comparison to their relevant index, most actively managed mutual funds:

   		a. Outperform during bull markets.
   		b. Outperform during the majority of bear and bull markets.
   		c. Match their benchmark return the majority of the time.
   		d. Underperform the majority of the time.

QUESTION 36

1. Which of the following statements regarding exchange-traded funds (ETFs) is least likely to be accurate?

   		a. ETFs can be sold short.
   		b. ETFs are more tax efficient than open-end mutual funds.
   		c. ETFs cannot be purchased with margin accounts.
   		d. ETFs can be traded during the day at market values that reflect the underlying index values.