Even Low-Quality Forecasts Have Proven to Be Valuable Because R-Squares

question 49

Multiple Choice

Even low-quality forecasts have proven to be valuable because R-squares of only ____________ in regressions of analysts' forecasts can be used to substantially improve portfolio performance.

• A) 0.656
• B) 0.452
• C) 0.258
• D) 0.153
• E) 0.001

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Definitions:

Predict Outcomes

The process of forecasting or estimating the future results or effects of actions taken in the present.

Corporate Ethics Codes

A set of principles and guidelines that a company adopts to govern its employees' behavior, supporting ethical business practices.

Ethical Responsibility

The duty to act in a morally correct manner, taking into account the impacts of one's decisions and actions on others and society.

Individual To Group

The psychological and social process where individual behavior shifts when they are part of a group, influencing and conforming to group dynamics.