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Assume that the daily stock volatility is 1 1 1 basis points and that you have a stock - picking ability that earns you an

Assume that the daily stock volatility is 111 basis points and that you have a stock-picking ability that earns you an extra 4.0% per year relative to your benchmark. Assume there are 250 trading days per year. You can statistically "prove" your stock picking ability by generating a t-statistic above 2.0. The t-statistic is calculated as your average excess return divided by the volatility of return. How many years is it expected to take to prove your ability? Give your answer in years to the nearest 0.1 year.

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