A model weighting game in estimating expected returns(By Lubos Pastor) It is hard to overstate the importance of expected returns in investment. (money manager, corporate manager, ordinary consumer) Unfortunately, expected returns are as elusive as they are important. There is no absolute agreement among finance professionals on how expected returns should be estimated The best estimates are produced by combining finance theory with historical returns data and our own judgmentA model weighting game in estimating expected returns (By Lubos Pastor) ◼ It is hard to overstate the importance of expected returns in investment. (money manager, corporate manager, ordinary consumer). ◼ Unfortunately, expected returns are as elusive as they are important. There is no absolute agreement among finance professionals on how expected returns should be estimated. ◼ The best estimates are produced by combining finance theory with historical returns data and our own judgment