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    Exam 7: Risk,return,and the Capital Asset Pricing Model
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    A Drawback to the Historical Approach of Estimating an Asset's
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A Drawback to the Historical Approach of Estimating an Asset's

Question 54

Question 54

Multiple Choice

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.

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