A Drawback to the Historical Approach of Estimating an Asset's

question 57

Multiple Choice

A drawback to the historical approach of estimating an asset's expected return is:

• A) the risk of the firm may have changed over time.
• B) history always repeats itself.
• C) that the range of potential outcomes is often very broad.
• D) all of the above are drawbacks to the historical approach.

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Definitions:

DDT Spill

An accidental release of the pesticide DDT (Dichloro-Diphenyl-Trichloroethane) into the environment, causing ecological and health concerns.

Aquatic Food Chain

A sequence of organisms, each of which serves as a food source for the next, in an aquatic ecosystem, showcasing the flow of energy and nutrients.

Phytoplankton

Microscopic plant-like organisms that live in aquatic environments and are a fundamental part of the oceanic and freshwater food chains.

Aerial Spraying

The application of pesticides or herbicides from aircraft to control pests and diseases in agriculture or public health campaigns.