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Suppose outperforming the stock market is like flipping a fair coin. Half the time you are likely to outperform the market in a given year
Suppose outperforming the stock market is like flipping a fair coin. Half the time you are likely to outperform the market in a given year and half the time you are likely to underperform the market in a given year. What is probability that you outperform the stock market five years in a row? Now, If independent individuals are investing in the stock market what is the probability that at least one of them outperforms the market five years in a row?
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