Risk and Return.

Which of the following statements is INCORRECT?

a$.$ An investment in the S&P $500($stocks$)$ has outperformed investments in bonds, real estate and gold over the long run $(1928-2022).$

b$.$ An investment in a risky asset guarantees a higher rate of return than a "safer" asset.

c$.$ Risk$-$averse investors require higher returns for taking on higher risk. If investments fail to deliver higher returns, the value $($price$)$ of those investments will drop.

d$.$ Market risk can be reduced but not completely eliminated by diversification.

e$.$ One of the shortcomings of the capital asset pricing model $($CAPM$)$ is that beta is a backward$-$looking measure of risk. Investors should keep in mind that companies could face new risks in the future.