Financial analysts who make forecasts of stock prices are categorized as either buy-side analysts or sell-side analysts.

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Financial analysts who make forecasts of stock prices are categorized as either "buy-side" analysts or "sell-side" analysts. Refer to the Financial Analysts Journal (Jul./Aug. 2008) comparison of earnings forecasts of buy-side and sell-side analysts, Exercise 2.86. The mean and standard deviation of forecast errors for both types of analysts are reproduced in the table. Assume that the distribution of forecast errors are approximately normally distributed.
a. Find the probability that a buy-side analyst has a forecast error of +2.00 or higher.
b. Find the probability that a sell-side analyst has a forecast error of +2.00 or higher.
Financial analysts who make forecasts of stock prices are categorized
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Statistics For Business And Economics

ISBN: 9780321826237

12th Edition

Authors: James T. McClave, P. George Benson, Terry T Sincich

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