Efficient Markets Hypothesis Your broker commented that well-managed firms are better investments than poorly managed firms. As evidence your broker cited a recent study examining 100 small manufacturing firms that 8 years earlier had been listed in an industry magazine as the best-managed small manufacturers in the country. In the ensuing 8 years, the 100 firms listed have not earned more than the normal market return. Your broker continued to say that if the firms were well managed, they should have produced better-than-average returns. If the market is efficient, do you agree with your broker?