In backtesting,computers are used to examine the composition and returns of portfolios based on historical data in order to determine if the investment strategy would have worked in the past.

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Backtesting involves using historical data to test an investment strategy and determine if it would have been successful in the past. This is typically done using computer programs that analyze the composition and returns of hypothetical portfolios based on the strategy.

In Backtesting,computers Are Used to Examine the Composition and Returns