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If an investor's excess return is negative,
Suggested Answer: B
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15 comments · newest first
CH
Christa
3 months ago
B is my pick. Realized vs required is crucial.
SU
Suzan
3 months ago
A feels right. Less than market is a loss.
LA
Lawana
3 months ago
D seems unlikely. Excessive diversification?
TH
Thad
3 months ago
C could be true. Poor diversification hurts.
JO
Joanna
3 months ago
B makes sense too. Required return is key.
LE
Leota
4 months ago
I think A is correct. Market returns matter.
ST
Stevie
4 months ago
Not sure about D), that seems off to me.
DO
Dorethea
4 months ago
Wait, how can excessive diversification lead to negative returns?
CH
Chana
4 months ago
C) could be a factor, but not always.
TH
Thaddeus
6 months ago
I think B) makes sense too.
AD
Adela
6 months ago
A) is definitely true.
TR
Tricia
6 months ago
D seems off to me; I thought excessive diversification usually reduces risk. I lean towards A or B, but I'm not completely sure.
SE
Sena
6 months ago
I recall discussing diversification, but I can't remember if excessive diversification leads to negative excess returns. C seems plausible, but I'm not confident.
LI
Lindsey
7 months ago
I'm not entirely sure, but I remember something about required returns. Maybe B is the answer since it sounds familiar from practice questions.
TA
Taryn
7 months ago
I think if the excess return is negative, it might mean the realized return was less than the market return, so A could be right.