A drawback to the historical approach of estimating an asset's expected return is:
A) the risk of the firm may have changed over time.
B) history always repeats itself.
C) that the range of potential outcomes is often very broad.
D) all of the above are drawbacks to the historical approach.
Correct Answer:
Verified
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Exhibit 7-2
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Exhibit 7-1
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A)
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