$[$Related to Solved Problem $6\mathrm{.}3]$ An article in the Wall Street Journal noted that in $2019,$ for the first time, the total value of stocks held by index funds was greater than the total value of stocks held by actively managed funds. The

article observed, "The challenge to traditional stock pickers began more than four decades ago with Vanguard founder Jack Bogle's introduction of the first index mutual fund for ordinary investors in $1976."$

What does the article mean by "traditional stock pickers"?

The article is referring to

Shouldn't investors be able to earn a higher return by finding knowledgeable managers who can pick high$-$performing individual stocks than by investing in index funds?

A$.$ Yes, knowledgable managers can consistently earn above$-$average profits, but the cost of executing all of the required trades leads to a lower final return than simply investing in an index fund.

B$.$ Yes, knowledgable managers can consistently earn above$-$average profits, however it is difficult to identify these managers and their fees can be extremely high.

C$.$ No$,$ the efficient markets hypothesis predicts that buying and selling in markets will eliminate opportunities for above$-$average profits for even the smartest money manager.

D$.$ Yes, knowledgable managers can consistently earn above$-$average profits, but the tax burden associated with owning individual stocks will lead to a lower final return than simply investing in an index fund.