Calculate the return on large stocks

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-The average yearly return on large stocks since 1926 has been 10 percent. Assume you just got back from 10 years in the "bush". That is, you have not heard any news. What will be your best guess for large stock returns in 2022? Now say that you are taking an online class in security analysis and portfolio theory. What is your best guess as to what the return on large stocks will be in 2022? Why? Why will you almost certainly be wrong? (Be analytical).

-It is illegal to manipulate clients thinking on investment issues to get them simply to trade securities (this is known as churning, as opposed to honest views on reallocating a portfolio). Should churning be illegal? Why or Why not. Answer rigorously.

Reference no: EM133080417

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