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True/False: Based on historical performance of mutual funds and hedge funds, evaluate whether each of the following statements are true or false. (4 points)

Funds that outperform the market in one year tend to continue to outperform in the following year.

While the average fund manager underperforms their benchmarks, some fund managers have valuable skills that allow them to regularly outperform their benchmarks.

Funds that have recently underperformed their benchmarks tend to turn around within a year’s horizon.

Average returns on hedge funds have historically been much greater than are available from trading in public equities.

Tiffany Jordan is a hedge fund manager with a history of outstanding performance. For the past 10 years, Jordan’s fund has used an equity market neutral strategy (long/ short strategy that strives to eliminate market risk; i.e., beta should be zero) which has proved to be effective as a result of Jordan’s hard work. An equity market neutral strategy normally generates large daily trading volume and shifts in individual security positions. Jordan’s reputation has grown over the years as her fund has consistently beaten its benchmark. Employee turnover on Jordan’s team has been high; she has a tendency to be quick to blame, and rarely gives credit to team members for success. During the past twelve months, her fund has been significantly underperforming against its benchmark.

Johns car averages $38.6 miles per gallon. If gas cost $2.20 per gallon and he drives 500 miles to see his friend, how much money will he need for gas?

Answer: _________