Investors avoid this stock because returns trail the index. Therefore …

Question

Investors avoid this stock because returns trail the index. Therefore returns will keep trailing. Flaw?

Accepted Answer

D. Past performance does not predict future.

1. Inferring future from past returns is a known fallacy.
_Source: 501-GMAT-Questions Ch 2 Critical Reasoning_

Answer

Investors are wrong.

Answer

Index changes monthly.

Answer

Investors are not analysts.

Investors avoid this stock because returns trail the index. Therefore returns will keep trailing. Flaw?