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a. Impressive Fund had excellent investment performance last year, with portfolio re- turns that placed it in the top 10% of all funds with the

a. Impressive Fund had excellent investment performance last year, with portfolio re- turns that placed it in the top 10% of all funds with the same investment policy. Do you expect it to be a top performer next year? Why or why not? b. Suppose instead that the fund was among the poorest performers in its comparison group. Would you be more or less likely to believe its relative performance will per- sist into the following year? Why

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