While We Are Using Historic Return to Estimate a Share's

question 29

Essay

While we are using historic return to estimate a share's beta, why can't we use historic data to forecast the expected return for the share?

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Definitions:

Charter of Rights

A formal document listing the rights and freedoms guaranteed to all citizens of a country or jurisdiction, often protected by law.

Parliamentary Supremacy

A principle of UK constitutional law stating that Parliament has the supreme legal authority to create or end any law, generally without any legal limit.

Legislation

Laws enacted by a governmental body, such as statutes or acts, established to regulate, authorize, sanction, grant, declare, or restrict.

Mediator

A neutral third party who facilitates discussion between parties to a dispute to encourage and assist their coming to an agreement; sometimes referred to as a conciliator.