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In the text, the James-Stein estimator is referred to as a Bayesian estimator because it incorporates an assumed prior feature of the return distributions for
In the text, the James-Stein estimator is referred to as a "Bayesian estimator" because it incorporates an assumed "prior" feature of the return distributions for the asset classes under review. What is the prior assumption in the JS Estimator? the Sharpe ratio should be identical across asset classes volatility should be identical across asset classes expected returns should be identical across asset classes
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