The probability that at least one fund out of 4,2170 funds outperforms the market in all 10 years is 0.99976 or 99.976%.
Probability measures the chance or likelihood of an event or outcome occurring out of many outcomes.
Probability shows how certain an outcome can happen.
The formula for measuring probability is given by; P(E) = Number of Favourable Outcomes/Number of total outcomes.
The probability of at least an event out of many outcomes is 1 minus the probability of favorable outcomes.
The number of funds = 4,170
Expected successful outcome = 1
Probability of at least one successful outcome = 0.99976{1 - (1/4,170)}
Thus, the probability shows that there is a 0.99976 or 99.976% chance that one fund out of 4,170 funds will outperform the market in all 10 years.
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