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

question 82

Essay

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?

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Definitions:

Avoidance-Oriented

Characterized by strategies aimed at avoiding failure or negative outcomes rather than achieving success.

Affiliation Motivation

The drive to connect with others and form social relationships; it's a fundamental human impulse to seek companionship and acceptance within a group.

Unconditional Positive Regard

Acceptance and love of someone’s whole self without conditions attached.

Self-Actualization

The process of realizing and fulfilling one's own potential and capabilities, often considered the highest level of psychological development.