An investment company is promoting their mutual investment funds. Their fund specializing in the Hong Kong stock market has been consistently outperforming the Hang Seng Index over the last ten years. The company argues that such strong performance is proof of their great ability in selecting stocks for long-term investment. Based on your understanding of the data generating process and the possible biases associated with it, provide an alternative interpretation of the statistics about fund performance.
An investment company is promoting their mutual investment funds. Their fund specializing in the Hong Kong stock market has been consistently outperforming the Hang Seng Index over the last ten years. The company argues that such strong performance is proof of their great ability in selecting stocks for long-term investment.
Based on your understanding of the data generating process and the possible biases associated with it, provide an alternative interpretation of the statistics about fund performance.
In the given question, an investment company is promoting their mutual investment fund that specializes in the Hong Kong stock market.
The company claims that this fund has consistently outperformed the Hang Seng Index over the last ten years.
The company uses this data to argue that their strong performance is evidence of their expertise in selecting stocks for long-term investment.
The question asks for an alternative interpretation of the statistics regarding the fund's performance, taking into consideration the data generating process and possible biases.
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