Why expected return is considered forward-looking

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Question 1: Explain why expected return is considered forward-looking. What challenges arise in using expected return?

Question 2: Explain how differences in allocations between the risk-free security and the market portfolio can determine the level of market risk.

  • Use references to support your responses as needed. Be sure to cite all references using correct APA style. Your responses should be free of grammar and spelling errors, demonstrating strong written communication skills.

Reference no: EM132844833

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