Multiple Choice
A perfect forecasting ability implies that:
A) the predicted change in earnings are higher than the realized change in earnings.
B) the forecaster outperforms the naive no-change model.
C) the value of Thiel's inequality coefficient will be more than 1.
D) the predicted change in earnings equals difference between actual earnings and forecasted level of earnings.
Correct Answer:
Verified
Correct Answer:
Verified
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