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Capital Market Expectations
Capital Market Expectations
Medium
An analyst switches from monthly to daily return data for a 5-year sample of global equities. Which statement about the impact on estimation precision is most accurate?
A
Variance estimates become more precise, but mean return estimates do not improve
B
Both mean and variance estimates become more precise due to the larger sample size
C
Mean return estimates become more precise, but variance estimates are unchanged
D
Neither mean nor variance estimates improve because the time span is unchanged
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Tags
#data-frequency
#variance-estimation
#mean-estimation
#sample-size
#cme-challenges
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