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Given That Markets Are Efficient,what Is the Most Logical Explanation

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Given that markets are efficient,what is the most logical explanation of the fact that a portfolio manager can outperform the S&P 500 by 5% annually?


Definitions:

Decision Making

The method of selecting options through recognizing a decision to be made, collecting data, and evaluating different solutions.

Division Profits

The earnings generated from a specific department or segment within a larger organization.

Profit Centers

Segments or divisions within a company that are directly responsible for generating a significant portion of the company's profits.

Division Profits

The earnings attributive to a specific division or branch of a larger company, often used to assess the performance of that segment.

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