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Mary is evaluating the risk (return deviation) of a model stock portfolio she has constructed. She knows that an ex ante set of returns is a more useful approach. However, she decides to examine ex post returns because she knows that for a well-diversified portfolio, they are likely to be:

A) within one standard deviation

B) reasonably steady across time

C) cumulatively accurate

D) more indicative across of future results

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M948713

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