Which of the Following Approaches to Estimating an Asset's Expected

question 83

Multiple Choice

Which of the following approaches to estimating an asset's expected return assumes that the future and the past share much in common?

• A) Historical
• B) Probabilistic
• C) Risk-based
• D) all of the above

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Definitions:

Expropriate

The act of a government taking private property for public use, usually with compensation to the owner.

Fee Simple Absolute

A type of freehold ownership where the owner has the maximum possible rights over the property, permitting them to use it, sell it, or bequeath it under the law.

Real Property

Land and anything permanently attached to the land, such as buildings, which can be contrasted with personal property.

Personal Property

Assets or belongings that are not permanently attached to, or part of, real estate.