In portfolio analysis, we often use ex post (historical) returns and standard deviations, despite the fact that we are interested in ex ante (future) data.

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Quizplus · Accepted Answer

This statement is true. Despite our desire for ex ante data, we use historical returns and standard deviations because they are the best indicators we have of future performance. Past performance can provide valuable insight into a portfolio's risk and return characteristics, which can inform decisions about future investments.

In Portfolio Analysis, We Often Use Ex Post (Historical) Returns