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:

Managerial Quality

The effectiveness and capability of managers in leading and making decisions that contribute to the success of an organization.

Vision

A statement or idea about what the future looks like, often used by organizations to guide long-term planning and decision-making.

Marketplace Needs

are the requirements and desires of consumers in a particular market segment, which businesses seek to satisfy through the development and offering of products or services.

Mental Exercises

Activities or practices that engage the brain, aiming to improve cognitive functions, memory, creativity, or problem-solving skills.