A Risk Associated with Using Historical Data to Estimate the Risk

question 36

True/False

A risk associated with using historical data to estimate the risk of expected returns of stocks is that the standard deviation of stocks does not remain constant over time.

---

Definitions:

Movement Training

A therapeutic or fitness practice that emphasizes improving physical movements to enhance health and performance.

Endurance Training

A regimen or activity aimed at improving an individual’s ability to sustain prolonged physical effort without fatigue.

Longitudinal Studies

Research designs in which one group of participants is studied over a period of time.

Coronary Heart Disease

A heart condition characterized by the narrowing of the coronary arteries, leading to a diminished blood supply to the heart, often resulting in chest pain or heart attacks.