The most likely reason link might not earn superior returns is: Model Risk
Modeling errors can lead to incorrect predictions because the model does not capture all the risks associated with an investment.
In finance, model risk is the risk of loss arising from the use of insufficiently accurate models for decision making and was originally associated with the valuation of financial stocks.
Model risk is the use of financial models to measure quantitative information such as the market risk and value trading of a firm, and the failure or poor performance of the model, resulting in adverse consequences for the firm.
Model risk generally refers to the potential risk of relying on a flawed model to make decisions. Financial institutions use a variety of models to predict losses, allocate capital, recommend trades, and more.
Learn more about Model Risk https://brainly.com/question/9951787
#SPJ4
