You have just started a job at an active equity fund management firm. The diversified equity fund of your firm has outperformed the all ordinaries accumulation index by 1% pa over the last ten year (before fees). It currently charges 2% pa in fees. The first task you are assigned at your new job is to write a critical essay evaluating the arguments for and against active fund management. Your essay should include a recommendation for the future direction of the firm. You should utilise existing literature (scholarly journals) on market efficiency and real world examples to support your conclusion.
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