The FALSE statement about Mutual Funds is:
a. A majority of actively managed mutual funds "beat the market" and are worth the fees they charge.
Explanation:
1. Actively managed mutual funds involve fund managers making decisions to try to outperform the market averages by selecting specific stocks and bonds.
2. In reality, it is widely known that a majority of actively managed mutual funds do not consistently outperform the market indices (like the S&P 500) over the long term.
3. Many studies have shown that most actively managed funds underperform the market averages after accounting for fees and expenses.
4. Therefore, the statement that a majority of actively managed mutual funds "beat the market" and are worth the fees they charge is FALSE.