Investor expectations about expected returns from various asset classes should start with:
A) long-term returns of those asset classes.
B) last month's return of those asset classes.
C) last year's return of those asset classes.
D) the correlation of returns from asset classes over the past two years.

Question

Quizplus · Accepted Answer

Investor expectations about expected returns should be based on long-term returns, as they provide a more stable and reliable basis for forecasting future performance compared to short-term fluctuations.

Investor Expectations About Expected Returns from Various Asset Classes Should