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

question 29

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While we are using historic return to estimate a share's beta, why can't we use historic data to forecast the expected return for the share?


Definitions:

Legal Action

A process involving the pursuit of a lawsuit or litigation to resolve disputes or enforce rights through the judicial system.

Tort Of Nuisance

A legal action for damages caused by a person’s unreasonable use of their own property, causing inconvenience or damage to others.

Strict Liability

Legal responsibility for damages or injury, regardless of the presence of fault or negligence.

Conversion

Intentional appropriation of the goods of another person for the appropriator’s own purposes.

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