Abstract
Accuracy in predicting earnings is a fundamental concern in investment analysis. The substantial resources devoted to the production and dissemination of earnings forecasts evidence the reliance by investors upon earnings expectations for purposes of portfolio management.1 Analytical research in finance has established the relevance of earnings to security valuation, and empirical research has shown that shifts in earnings expectations are associated with revisions in security prices.
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Elgers, P.T., Lo, M.H., Murray, D. (1999). Diversifying Earnings Forecast Errors via Composites of Market-Based, Analyst and Time-Series Predictions. In: Ho, D., Schneeweis, T. (eds) Applications in Finance, Investments, and Banking. Advances in Computational Economics, vol 9. Springer, Boston, MA. https://doi.org/10.1007/978-1-4757-3007-4_7
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DOI: https://doi.org/10.1007/978-1-4757-3007-4_7
Publisher Name: Springer, Boston, MA
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