In Time-Series Models of Earnings, the Forecast Error Provides a Measure

question 27

Multiple Choice

In time-series models of earnings, the forecast error provides a measure of the deviation in quarterly earnings announcements or surprises which can be related to previous errors to obtain a measure known as the

• A) dividend decision.
• B) standardized unexpected earnings.
• C) abnormal return.
• D) market beta.

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Definitions:

Logical Function

A function that applies logical operators on its arguments to return Boolean values; used in programming and mathematical contexts.

IF

A conditional statement used in programming that executes a specific block of code if a specified condition is true.

OR

In statistics, 'OR' typically refers to the odds ratio, a measure of association between two binary outcomes.

VLOOKUP

A function in spreadsheet programs that searches for a value in the first column of a table array and returns a value in the same row from a specified column.