In the previous chapter, we dealt with historical returns and variances. In this chapter, we focused
on expected returns. Why did we need to make the switch from historical to expected? Why not use
historical returns for both chapters or else use expected returns for both chapters?

Question

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The Answer of In the previous chapter, we dealt with historical returns and variances. In this chapter, we focused
on expected returns. Why did we need to make the switch from historical to expected? Why not use
historical returns for both chapters or else use expected returns for both chapters?

In the Previous Chapter, We Dealt with Historical Returns and Variances