Because property values sometimes fluctuate in response to economic conditions beyond the purchaser's control, an investment in a home may underperform when compared to that of other widely available classes of investments.


(A) an investment in a home may underperform when compared to that of other widely available classes of investments

Compared to “that of” other widely available classes of investments.


“That of” should refer to “investment”. In that case, it would read-  the investment of other widely available classes of investments.- Now, we have a problem of redundancy! Eliminate


(B) an investment in a home may underperform compared with other widely available classes of investments

Correct


(C) an investment in a home may underperform when comparing it with other widely available classes of investments

- distorts the meaning of the sentence. Eliminate. 


(D) compared to that of other widely available classes of investments, an investment in a home may underperform

Same as A. Eliminate


(E) in comparison with that of other widely available classes of investments, an investment in a home may underperform

Same as A. Eliminate