Question $6(2$ points$)$

Historical returns support which one of the following statements?

Historical data supports the statement that arbitrage is unlimited and results in a

totally efficient market.

Financial markets are highly inefficient as suggested by behavioral finance.

Professional money managers tend to outperform the Vanguard $500$ index fund

about $55$ percent of the time on average.

The longer the time span, the more apt a professional money manager is to

outperform an index fund, such as the S&P $500.$

The financial markets appear to be efficient because, on average, they

outperform professional money managers.