Forecast Bias Measures the Average Amount of Error Per Forecast

question 109

True/False

Forecast bias measures the average amount of error per forecast, so a positive value means that forecasts tended to be too low.

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Definitions:

Automatic Dividend Reinvestment

A feature that allows shareholders to automatically use their dividend payments to purchase additional shares of the stock, usually without a commission.

Additional Shares

Newly issued stock by a company, which increases the total number of shares outstanding and dilutes the ownership percentage of existing shareholders.

Discounted Price

A reduced price from the original selling price, often used to stimulate sales or clear inventory.

Tax-exempt Investor

An individual or entity that is not required to pay taxes on certain income or investments.