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I am learning about the basics of Risk Adjust Performance when I stumble upon something odd with some sample data about UPS. Clearly, the UPS stock's cumulative return is underperforming the market; however, what I don't understand is how intersects the risk-free return that about 4.4%.

What exactly does it mean for a stock's cumulative return to dip below the risk-free market?
Cumulative Return for UPS

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In essence, risky assets can perform awfully bad some of the time. What the theory says, intuitively, is that the distinct possibilities of large swings should, on average, command a commensurate reward.

In other word, the equity premium is a statement about average excess returns being positive. That doesn't mean that all excess returns on all assets at all times will be positive.

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