Mutual Funds And Market Efficiency

The Efficient Markets Hypothesis is one of the most tested and most contentious theories in social sciences. A popular test of market efficiency is whether professional money managers can outperform the stock market. In a nod toward market efficiency, through November 25, about 85 percent of mutual fund managers have underperformed the stock market. The performance of actively managed mutual funds is the worst one-year performance in 30 years.