Your broker concluded that if they were well-managed they

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In a recent discussion with you, your broker commented that well-managed firms are not necessarily more profitable than firms with average management. To convince you of this, she presented you with evidence from a recent study conducted by the firm for which she works. The study examined the returns on 17 small manufacturing firms that, eight years earlier, an industry magazine had listed as the best-managed small manufacturers in the country. In the eight years since the publication of that issue of the magazine, the 17 firms have not earned more than the market. Your broker concluded that if they were well-managed, they should have produced better-than-average returns. Do you agree with your broker?

Reference no: EM13574567

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