Course Name: Quantitative Portfolio Management, Section No: 2, Unit No: 8, Unit type: Exercise
What is an ideal way to determine expected returns on a stock besides the approach of taking immediate previous period as the base as given the example?
Hi Raul,
Apart from using historical data, you can use some interesting models such as the CAPM or the Fama French Five-Factor Models in order to determine the expected returns of a stock.
I hope this was helpful.