20% 15% Annual Return 10% 01 a3 04 05 096 02 S&P 500 (Lowest turnover) Highest turnover Source: B. Barber and T. Odean, "Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of individual Investors," Journal of Finance 55 (2000) 773-806. The above graph can best be summarized by which statement? The S&P 500 is always the best investment for all retirees Trade frequently to capture opportunities to beat the market Trading activity is directly proportional to stock return performance Frequent trading is costly and reduces total return in efficient markets