No, this is not a violation of market efficiency. An alpha of 2.0% per year on average over the last five years is not indicative of any market inefficiency but rather just a good performance by the mutual fund.
Market efficiency is an economic theory that states that all available information about an asset is reflected in its current market price. This means that the current market price of an asset accurately reflects all available information about the asset, including its past performance and future prospects. Market efficiency is a cornerstone of modern finance and is used to inform investment decisions. It is based on the idea that it is impossible to consistently outperform the market due to the fact that all participants in the market are well informed and act on their own self-interest. As a result, market prices always reflect the most up-to-date and accurate information available.
To learn more about market efficiency
https://brainly.com/question/17165279
#SPJ4
