You work as a researcher at an actively managed Australian equity fund. It has been struggling to beat its benchmark in recent years. Your supervisor makes the following statement to you. “We are at a crossroads in our fund. It has been suggested to me that the markets are fairly efficient and we should switch to a passive management style. Then I keep hearing that with all the volatility in the markets, a behavioural finance approach will help us beat our benchmark again.” You are assigned you the task of writing a critical essay evaluating the arguments of the two schools of thought and the implications of these for the fund. You should utilise existing literature (scholarly journals) on market efficiency and behavioural finance as well as real world examples to support your arguments. Your essay should include a conclusion on market efficiency and any implications of your research for the future direction of the fund. Introduction – Brief background to market efficiency, behavioural finance and the implications for the fund. 2. Detailed Discussion of Market Efficiency – Discuss research (e.g. journal articles) and real world examples (e.g. fund manager performance) that support or disagree with market efficiency. 3. Discussion of Behavioural Finance – Discuss research (e.g. journal articles) and real world examples (e.g. behaviour of markets) that support or disagree with behavioural finance 4. Conclusion on market efficiency and recommendations for the fund.