Investor expectations about expected returns from various asset classes should start with:
A)historic rates of return of those asset classes,from sources such as Morningstar/Ibbotson & Associates.
B)economic forecasts
C)inflation.
D)taxes.

Question

Quizplus · Accepted Answer

Historic rates of return of various asset classes provide a good starting point for investor expectations. Morningstar and Ibbotson & Associates are recognized sources for reliable historical data on asset classes. Economic forecasts, inflation, and taxes are all important factors to consider but they should not be used as the sole basis for determining expected returns.

Investor Expectations About Expected Returns from Various Asset Classes Should