Mark, Alisha, Jasmine -- please use the same name for your posts.
Also -- your questions and answer choices would be a lot easier to read if you put each choice on a separate line and identified them as a, b, c, d.
In the Capital Asset Pricing Model, the market risk premium is estimated over a long period of time because: more data is always better than less. a longer holding period gives a more reliable estimate because it is, in effect, a larger sample size. almost all investors hold stocks for many years, so it matches their investment horizon. historical returns are the best indicators of future returns.
3 answers
In the Capital Asset Pricing Model, the market risk premium is estimated over a long period of time because:
A. more data is always better than less.
B. a longer holding period gives a more reliable estimate because it is, in effect, a larger sample size.
C. almost all investors hold stocks for many years, so it matches their investment horizon.
D. historical returns are the best indicators of future returns.
A. more data is always better than less.
B. a longer holding period gives a more reliable estimate because it is, in effect, a larger sample size.
C. almost all investors hold stocks for many years, so it matches their investment horizon.
D. historical returns are the best indicators of future returns.
B.
http://www.investopedia.com/terms/c/capm.asp
http://www.investopedia.com/terms/c/capm.asp
1 answer