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An analyst wants to estimate the historical equity market return of the developed Europe market. He downloaded the portfolio holdings of a European market ETF

An analyst wants to estimate the historical equity market return of the developed Europe market. He downloaded the portfolio holdings of a European market ETF at the end of 2019 and use the weighted average historical returns of those stocks to estimate the market return over a 20-year period (while the ETF only goes back for 10 years).



The potential issues of this exercise include?

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