Which of the following statements is not true?
A) Expected return is the estimated future return.
B) Expected return is often estimated using historical averages.
C) Expected return can be calculated using weights to represent the probabilities of possible returns.
D) Using historical averages to calculate expected return is the best method to use for short-term forecasts.

Question

Quizplus · Accepted Answer

Using historical averages to calculate expected return is not necessarily the best method for short-term forecasts because it assumes that past performance will predict future results, which may not always be accurate due to market volatility and unforeseen events.

Which of the Following Statements Is Not True