26 Behavioural Finance A global publication has identified a fund manager as consistently outperforming the market over

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26 Behavioural Finance A global publication has identified a fund manager as consistently outperforming the market over the past five years. An analyst argues that the identification of this manager will lead investors to put more cash into the manager’s fund and this money will be used to carry out more detailed analysis. This will in turn lead to further excess performance. Would such an argument be consistent with market efficiency or behavioural finance? Explain.

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Corporate Finance

ISBN: 9781526848093

4th Edition

Authors: David Hillier

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