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:

Health Benefits

Pertains to positive effects on the well-being and health status of an individual, often resulting from actions such as regular exercise, balanced diet, or proper medical care.

Meta-Analysis

A statistical technique for combining results of several studies when these studies have similar definitions of variables.

Expectancy

The state of thinking or hoping that something, especially something pleasant, will happen or be the case.

Psychoactive Drugs

Substances that, when taken into the body, alter brain function, resulting in temporary changes in perception, mood, consciousness, and behavior.