If we choose to calculate and use an arithmetic average as our predictor of future expected returns,

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If we choose to calculate and use an arithmetic average as our predictor of future expected returns, we are implicitly assuming that:

a. The expected holding period is long compared to the return calculation period.

b. The expected holding period is not long compared to the return calculation period.

c. The expected holding period is one year or less.

d. The expected holding period is one year or more.

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