According to the Dalbar study, what was revealed about average investors' performance?

The Dalbar study is well-known for analyzing the performance of average investors in relation to market indices. The core finding of this study indicates that average investors often fail to achieve market-index returns. This underperformance can be attributed to a variety of behavioral factors, such as emotional decision-making, timing the market, and lack of a disciplined investment strategy.

Many average investors tend to react to market fluctuations, often buying high during market euphoria and selling low during downturns, which can significantly impair their overall returns. As a result, the study highlights the gap between the performance of average investors and the performance of the market itself, underscoring the challenges that individual investors face in achieving satisfactory investment outcomes.

In contrast, other options either suggest that average investors outperform the market or meet its returns, which does not align with the findings of the Dalbar study.