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All of the following are appropriate methods for addressing return aggregation in volatility forecasting methods EXCEPT: A. the historical standard deviation approach creates a variance-covariance matrix that is estimated under the assumption that all asset returns are normally distributed. B. the historical simulation approach weights returns based on market values today, regardless of the actual allocation of positions K days ago. C. the RiskMetricsTM approach creates a variance-covariance matrix that is estimated under the assumption that volatility is constant over time. D. for well-diversified portfolios, the strong law of large numbers is required to estimate the volatility of the vector of aggregated returns. |