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Quarterly Returns Were Forecasted for a Mutual Fund Made Up

Question 10

Multiple Choice

Quarterly returns were forecasted for a mutual fund made up of technology stocks. The forecast errors for the last six quarters are as follows: -0.47, 1.12, -0.85, 1.27, 0.07, and -0.05. The MAD based on these forecast errors is


A) 0.77.
B) 0.98.
C) 0.22.
D) 0.18.
E) 0.64.

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