Which of the Following Statements About the Use of Historical

question 38

Multiple Choice

Which of the following statements about the use of historical data is false?

• A)Correlations and risk measures tend to be fairly stable and, therefore, past data can be assumed to reasonably represent the future.
• B)In order to examine return patterns, a minimum of 20 to 30 years of data is necessary.
• C)Historical average returns are good predictors of the future, but the rate of return in any given year should not be relied on to predict the future.
• D)All of the above statements are true.

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Definitions:

Dependence

A state in which one entity relies on another for support, sustenance, or survival, often used in economic, social, or substance use contexts.

Trade

The exchange of goods and services between two or more parties.

Tuscarora War

A conflict between the British, Dutch, and German settlers and the Tuscarora Native Americans in North Carolina during the early 18th century.

Slaving Raids

Expeditions or attacks aimed at capturing individuals to be sold or traded as slaves, a practice common in various parts of the world throughout history.