While we are using historic return to estimate a stock's beta, why can't we use historic data to forecast the expected return for the stock?
What will be an ideal response?
Answer: It is extremely difficult to infer the average return of individual stocks from historic data because stock returns are very volatile. Even 100 years of data would not be enough to estimate the true average to forecast future return.
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Which of the following statements is most likely true regarding the objective-and-task method of budget setting?
A) It forces management to spell out its assumptions about the relationship between the money spent and promotion results. B) It is the simplest and least time consuming method to use. C) It is the least logical budget-setting method. D) It involves setting the promotion budget to match competitors' outlays. E) It wrongly views sales as the cause of promotion rather than as the result.
A buyer's decisions are influenced by ________ such as culture, subculture, groups, gender roles, and family
A) personal characteristics B) situational factors C) perceptions D) social factors E) psychological factors