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Question
Which of the following is a method that may overcome weaknesses in the historic or back simulation model?
A. The use of smaller sample sizes to estimate return distributions.
B. Weight sample size observations so that the more recent observations contribute a larger amount to the model.
C. Decrease the number of assets in the trading portfolio so that past returns will provide more accuracy to the model.
D. Increase the number of assets in the trading portfolio in order to benefit from higher levels of diversification.
E. The weaknesses in the model cannot be overcome.
Answer
This answer is hidden. It contains 1 characters.
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