Evidence on the link between trading and performance

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Mutual funds vary in terms of time horizon and trading volume. Which of the following best summarizes the evidence on the link between trading and performance?

Mutual funds that trade more (have higher turnover ratios) have lower total returns and lower risk adjusted returns than the market.

Mutual funds that trade more (have higher turnover ratios) have higher total returns but lower risk adjusted returns than the market.

Mutual funds that trade more (have higher turnover ratios) have lower total returns but higher risk adjusted returns than the market.

None of the above

Reference no: EM131511806

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