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Suppose Fred has earned an average return of 1 2 % over the past 5 years, while Mark has earned 8 % over that span.

Suppose Fred has earned an average return of 12% over the past 5 years, while Mark has earned 8% over that span. The Russell 2000 has returned 10% over the same period. Has Fred outperformed Mark over this period? Is it possible that Mark has actually outperformed Fred? Explain.

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