Learn
Teaching Resources
University Resources
High School Resources
EconInbox
High School Teacher Trainings
Econ Educator Community
About Us
About Us
Partnerships
Careers
Give Feedback
My Account
Toggle mobile search form
Search
Give Feedback
My Account
Practice Questions
Who is More Rational? You or the Market? Practice Questions
1. In 2008, Warren Buffett and a money management firm (Protege Partners) made a
million-dollar bet
. Warren Buffett bet that a passive, low-fee mutual fund of his choosing could outperform an actively managed investment portfolio by a team of financial wizards. Buffett picked a boring S&P 500 index fund, like this video recommends. Protege Partners chose a “portfolio of funds of hedge funds.” While the bet doesn’t conclude until 2018, who do you think is on track to win?
*
a. Warren Buffett and his boring S&P 500 index fund.
b. The very smart financial managers and their complex ‘funds of funds.’
2. The market has some known anomalies such as the January effect mentioned in this video. Given these known anomalies, should you try to beat the market?
*
a. Yes.
b. No.
3. Warren Buffett tells his children to invest
*
a. In actively managed mutual funds.
b. In index funds.
c. In funds of funds.
d. After speaking to a financial manager.
Submit
Skip to Next Lesson
Back to video
Submit
Money Skills
Course
(10 videos)
Investing
How Expert Are Expert Stock Pickers?
Practice Questions
Can You Beat the Market?
Practice Questions
Investing: Why You Should Diversify
Practice Questions
Who Is More Rational? You or the Market?
Practice Questions
Real Estate
(Coming Soon) Real Estate
Econ Duel: Rent or Buy?
Career
The Economics of Choosing the Right Career
Practice Questions
(Coming Soon) Navigating Career-Related Data
Saving
The Miracle of Compound Returns
Practice Questions
(Coming Soon) Simple Saving Tips