Which of the following approaches to estimating an asset's expected return assumes that the future and the past share much in common?

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Quizplus · Accepted Answer

The historical approach is based on the assumption that the future and the past share much in common. It uses past returns to estimate an asset's expected future return. The other approaches (probabilistic and risk-based) do not rely solely on past data and incorporate other factors such as current market conditions and future expectations.

Which of the Following Approaches to Estimating an Asset's Expected