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:

Expected Frequency

The number of times an outcome is expected to occur in a statistical experiment based on the probability of that outcome.

Police Job

Employment in law enforcement, responsible for maintaining public order and safety.

Walk After Dark

An activity that gauges public perception of safety or crime in an area, often related to social studies.

Expected Frequency

The predicted frequency of occurrences in a category based on the application of a statistical model or the distribution assumption.