Mutual fund companies tend to hire new fund managers after the candidate has had large positive excess returns at their prior job for about three years. If hiring recently high performers is the result of the local representativeness heuristic on the part of the hiring manager, what is your (as a student of behavioral finance) expectation about the performance of the manager after being hired? Mutual fund companies tend to hire new fund managers after the candidate has had large positive excess returns at their prior job for about three years. If hiring recently high performers is the result of the local representativeness heuristic on the part of the hiring manager, what is your (as a student of behavioral finance) expectation about the performance of the manager after being hired? The manager's expected excess returns is zero to slightly negative The manager's expected excess return is highly positive The manager's expected excess return is extremely negative The manager will have a party