Sean, an equity analyst, is forecasting the US bond return. He considers using the last 50 years of historical monthly returns to build a model. His colleague John disagrees with him and argues that Sean should use only the last 15 years of historical data. Which of the following does not support Johns suggestion?

a.

More recent data is more likely to reflect the current economic and political environment

b.

If there are no structural changes in the underlying market, the longer sample period can introduce more noise in the estimation accuracy

c.

Important market factors affecting bond market, such as central bank cash rate, have entered into a new regime over the past 15 years

d.

If there are structural changes in the underlying market, using longer sample period can bias the statistical estimation