Which of the following statements about the use of historical data is false?
A)Correlations and risk measures tend to be fairly stable and, therefore, past data can be assumed to reasonably represent the future.
B)In order to examine return patterns, a minimum of 20 to 30 years of data is necessary.
C)Historical average returns are good predictors of the future, but the rate of return in any given year should not be relied on to predict the future.
D)All of the above statements are true.

Question

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The Answer of Which of the following statements about the use of historical data is false?
A)Correlations and risk measures tend to be fairly stable and, therefore, past data can be assumed to reasonably represent the future.
B)In order to examine return patterns, a minimum of 20 to 30 years of data is necessary.
C)Historical average returns are good predictors of the future, but the rate of return in any given year should not be relied on to predict the future.
D)All of the above statements are true.

Which of the Following Statements About the Use of Historical