The following list reports the average return from 2012-2019 for thetop 5 mutual funds out of the 200 funds that only buy shares in large U.S. publicly traded firms: Martha Stewart Investment Fund 18%,; High Frequency Trading Partners 14%; SG Investors 12%; Ramguard Large Cap Growth Fund 10%; FlackRock Large Cap Balanced Fund 10%. The return over the S&P 500 for the same period was 8%. Your study buddy says "Since these mutual funds have outperformed the S&P 500, this is compelling evidence against market efficiency." Assuming that all of the reported values are correct, do you agree or disagree with your study buddy? Explain why/why not. 6-8 bullet points.

Answer rating: 100% (QA)

I do not agree with study buddy because as per the efficient market theory no stock can outperform i... View the full answer