Question
You manage a portfolio of investments and are presented with a research report that shows that over the past five years, technology stocks have outperformed
You manage a portfolio of investments and are presented with a research report that shows that over the past five years, technology stocks have outperformed utility stocks by 13.7% to 10.1%. Is this a significantly higher return or just the results of random chance? Should you think about investing in technology stocks? What is the probability of the technology stock continuing to outperform the utility stock? On the scale of 0 to 1 where would you score the probability?
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