IAAI uses primarily historical data in its calculations and forecasts. Which of the following regarding the actions of IAAI is most accurate?

a. Credit risk premiums may be useful to IAAI because they are based on actual market expectations.

b. IAAI should use a moving average of recent stock returns when times are bad because it will result in a high expected equity risk premium.

c. Long time spans should be used so that regime changes can be factored into the forecasts.  P-968