A good friend of yours got a job as a fund manager.He manages a high-risk tech stock fund, and can expect to earn a large bonus if he manages to outperform the market.At the end of his ﬁrst year working in the job, he indeed tells you he has earned a huge bonus.If markets are eﬃcient, what can you expect him to tell you about his bonus a year later?

Question

Quizplus · Accepted Answer

The Answer of A good friend of yours got a job as a fund manager.He manages a high-risk tech stock fund, and can expect to earn a large bonus if he manages to outperform the market.At the end of his ﬁrst year working in the job, he indeed tells you he has earned a huge bonus.If markets are eﬃcient, what can you expect him to tell you about his bonus a year later?

A Good Friend of Yours Got a Job as a Fund