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7. Which is the best way to use historical data to estimate the expected return for investing in the stock market? A. The current Treasury
7. Which is the best way to use historical data to estimate the expected return for investing in the stock market?
A. The current Treasury bill rate plus an average risk premium for stock market investing in recent years.
B. The current Treasury bill rate plus a long run average risk premium for investing in the stock market.
C. A long-run average Treasury bill rate plus a long-run average risk premium for stock market investing.
D. A long-run average of historical stock market returns
E. An average of a few years of recent stock market returns
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