1. The following table reports the average 5-year returns from 2012-2016 for the top 10 performing mutual funds out of the 200 funds that invest only in large market cap U.S. equities. The corresponding return on the Standard and Poors 500 Index for the same period was negative 3.5% (the last row of the table).

Fund	Average 5-year return%
Rajaratnam Funds Inc	24
Martha Stewart Partners	15
Carl Icahn Investments	12
Banguard Aggressive Growth Fund	10
BlackSock International	9
Viking Global Investors	7.5
Mon Group	6
Lost Pine Capital	6
D.B. Shaw & Co.	3.2
Slowpoke Investors	1.5
S&P 500 Index	-3.5

Your study buddy says Since these funds have outperformed the S&P 500, this is evidence against the efficient markets hypothesis. Do you agree or disagree with your study buddy? Explain why/why not.