In the Capital Asset Pricing Model, the market risk premium is estimated over a long period of time because: (Points : 1) 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.
My objective in writing this survey is to provide an overview of the work that has been done in an important area of financial markets research—explaining the behavior of common stock returns. [ I ...
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