Oakdalc Orchards has produced the following earnings during the past nine quarters: Quarter Earnings per Share 1...................................$2.00

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Oakdalc Orchards has produced the following earnings during the past nine quarters:
Quarter Earnings per Share
1...................................$2.00
2...................................1.95
3...................................2.05
4...................................2.10
5...................................2.40
6...................................2.24
7...................................2.67
8...................................2.84
9...................................2.64
The expected earnings for the current quarter are based on the equation QEt = QEt-4 - .75 (QEt-1 - QEt-5).Calculate the standardized unexpected earnings in each of the past four quarters, given a standard deviation of $.35.
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Fundamentals of Investments

ISBN: 978-0132926171

3rd edition

Authors: Gordon J. Alexander, William F. Sharpe, Jeffery V. Bailey

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