Trading activity and average returns in brokerage accounts tend to be ________.
A) uncorrelated
B) negatively correlated
C) positively correlated
D) positively correlated for women and negatively correlated for men

Question

Quizplus · Accepted Answer

Trading activity and average returns in brokerage accounts tend to be negatively correlated. This means that, generally, the more an individual trades, the lower their average returns tend to be. This phenomenon is often attributed to trading costs, taxes, and the difficulty of consistently outperforming the market through frequent trading.

Trading Activity and Average Returns in Brokerage Accounts Tend to Be