if I want to calculate expected return of a company using historical data, what
ID: 2771693 • Letter: I
Question
if I want to calculate expected return of a company using historical data, what kind of historical data should I use? where can I get the historical data? does the historical data refer to annual return or the stock prices? if I want to calculate expected return of a company using historical data, what kind of historical data should I use? where can I get the historical data? does the historical data refer to annual return or the stock prices? if I want to calculate expected return of a company using historical data, what kind of historical data should I use? where can I get the historical data? does the historical data refer to annual return or the stock prices?Explanation / Answer
The historical data to be used to calculate expected retun wre:-
Return for last 4, 5 or 10 i.e. n no of years for which we have data available.
Then we should use the probabilities of that expected return.
The Historical data refers to the annual return.
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