Under what conditions might a return of 15% be actually worse than a return of 10%?
A)In a bull market
B)In a bear market
C)On a risk-adjusted basis
D)More than one of the above

Question

Quizplus · Accepted Answer

A return of 15% might be worse than a return of 10% if the 15% return is achieved with higher risk as compared to the 10% return. In such cases, when we consider risk-adjusted returns, a return of 10% might be better than a return of 15%.

Under What Conditions Might a Return of 15% Be Actually