document.write( "Question 1149633: A financial analyst has determined that there is a 25% probability that a mutual fund will outperform the market over a 1-year period provided that it outperforms the market the previous year. If only 15% of mutual funds outperform the market during any year, what is the probability that a mutual fund will outperform the market 2 years in a row? \n" ); document.write( "

Algebra.Com's Answer #770987 by Theo(13342) $\"\"$ $\"About$

You can put this solution on YOUR website!
i believe your solution will be .25 * .15 = .0375.
\n" ); document.write( "in the previous year, assume 1200 mutual funds.
\n" ); document.write( "15% of them outperformed the market means that 180 outperformed the market.
\n" ); document.write( "of those 180, 25% = 45 outperformed the market the second year.
\n" ); document.write( "45 / 1200 = .0375.
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