Which of the Following Is True According to the Text

question 9

Multiple Choice

Which of the following is true according to the text?

• A) Forecasts in recent years have been very accurate.
• B) Use of the absolute forecast error as a percent of the realized value is a good measure to use in detecting a forecast bias.
• C) Forecasting errors are smaller when focused on longer term periods.
• D) None of the above.

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Definitions:

High Dividend Payout

A policy where a company distributes a large portion of its earnings to shareholders in the form of dividends.

Flotation Costs

Expenses incurred by a company when issuing new securities, including underwriting fees, legal fees, and registration fees.

Significant

Of considerable importance, size, or worth; likely to have influence or effect.

Uncertainty Resolution

The process of clarifying and reducing the uncertainty in decision-making or forecasting, particularly through the gathering of more information oranalysis.