A work colleague was bragging that the actively managed mutual fund he selected among your employ

er's 401(k) electives outperformed the S&P 500 over the past 3 years. The colleague (who did not take FINC 561) claims that it's a great fund, that the manager is a genius and is urging you to invest in that fund as well.

However, you believe that markets are efficient. Do you take your colleague's advice?Explain your rationale by applying concepts of market efficiency learned so far in the course. Include whether the mutual fund's performance violates or disproves efficient markets and why or why not? (20 points)