Recall that U.S. mutual fund companies offer about 8,000 separate funds. Suppose each fund has a 50

Question:

Recall that U.S. mutual fund companies offer about 8,000 separate funds. Suppose each fund has a 50 percent chance of beating the S&P 500 each year.
a. Over a 5-year period, how many funds will beat the market in every year? How about a 15-year period?
b. Based on the performance of William Miller’s mutual fund from 1981 through 2005, would you say Miller is a genius? Explain.