Suppose you are the chief investment officer at a fund. Two quantitative researchers (A and B) work for you. Each of them propose an investment strategy to you and you need to choose one to implement for your fund.

Here is some information about how these researchers found their strategies. After backtesting 10 different strategies, A found that the best one among the 10 delivered 8% annual returns in historical data, and proposed that strategy to you. B also proposes a strategy that also delivered 8% annual returns in historical data but she is more thorough, as she backtested 25 different strategies and picked the best one.

Your goal is to have the best opportunity to deliver good returns for your fund going forward. Which one should you choose?

1. The strategy proposed by researcher A.
2. The strategy proposed by researcher B.
3. It really doesn't matter as the two are equally good.