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(a) Discuss the advantages and disadvantages of utilising a historical variance measure to estimate the risk of future stock returns. (b) Explain the decisions that
(a) Discuss the advantages and disadvantages of utilising a historical variance measure to estimate the risk of future stock returns. (b) Explain the decisions that must be made in order to arrive at a historical variance measure of stock returns. How do these decisions relate to the relative advantages of historical extreme value estimators?
(a) Discuss the advantages and disadvantages of utilising a historical variance measure to estimate the risk of future stock returns.
(b) Explain the decisions that must be made in order to arrive at a historical variance measure of stock returns. How do these decisions relate to the relative advantages of historical extreme value estimators?
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