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Which of the following statements is (are) true: I : Asset and portfolio returns are based on expectations. II: Expectations should be based on short-term

Which of the following statements is (are) true:

I : Asset and portfolio returns are based on expectations.

II: Expectations should be based on short-term historical observations.

Statement I is true; Statement II is false
Both statements are false
Both statements are true
Statement I is false; Statement II is true

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