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Notices
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Nicolas Rabener (not verified)
6th February 2024 | 3:41am

Hi Marc, yes, you are right that there are more sophisticated Monte Carlo approaches that use CMAs, or combine backward-looking data and CMAs. There is no great way to forecast returns, but we would prefer to focus on forward rather than backward-looking data as the long-term returns seem a function of valuations rather than historic prices.