The statement that actively managed mutual funds generally do not outperform the market is accurate. This is a well-documented phenomenon in the world of finance. The reason behind this is multifaceted. Firstly, actively managed funds incur higher transaction costs due to frequent buying and selling of securities, which can eat into the returns. Secondly, predicting the market consistently over the long term is extremely difficult, even for seasoned fund managers. Lastly, the fees associated with actively managed funds are typically higher than those of index funds, further reducing the net return for investors. Therefore, while some actively managed funds do outperform the market in certain years, on average and over the long term, they do not tend to outperform the market.

Choice A is incorrect. Most actively managed mutual funds do not beat the market return in most years. This is due to a variety of factors, including high fees and expenses associated with active management, as well as the difficulty in consistently predicting market movements.

Choice B is incorrect. While it's true that many actively managed funds underperform the market, this statement is too broad and doesn't accurately reflect the performance of all such funds. Some actively managed funds may indeed underperform, but others may perform on par with or even outperform their benchmark index in certain years.

Choice D is incorrect. Actively managed mutual funds generally do not exceed the return earned on index funds like S&P 500 over long periods of time due to reasons mentioned above such as high fees and difficulty in consistently predicting market movements.