Negative historical returns are not possible during periods of high volatility (high standard deviations of returns)due to the risk-return trade-off.

Question

Quizplus · Accepted Answer

Negative historical returns are possible during periods of high volatility as the risk-return trade-off does not guarantee positive returns in every scenario. High volatility can lead to both high returns as well as high losses.

Negative Historical Returns Are Not Possible During Periods of High