The readings for module 3 explain that past performance for a company or stock is not a guarantee of future performance. Yet many models for stock and company valuation link the value of past performance to future expectations. If there is no guarantee, why do you think that past performance is used to predict future company performance and stock returns?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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The readings for module 3 explain that past performance
for a company or stock is not a guarantee of future
performance. Yet many models for stock and company
valuation link the value of past performance to future
expectations. If there is no guarantee, why do you think
that past performance is used to predict future company
performance and stock returns?
Instructions
All sources used for postings should follow APA citation
guidelines for in text references and end of posting
references.
Transcribed Image Text:Description Prompt The readings for module 3 explain that past performance for a company or stock is not a guarantee of future performance. Yet many models for stock and company valuation link the value of past performance to future expectations. If there is no guarantee, why do you think that past performance is used to predict future company performance and stock returns? Instructions All sources used for postings should follow APA citation guidelines for in text references and end of posting references.
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