Diversifying Earnings Forecast Errors via Composites of Market-Based, Analyst and Time-Series Predictions

  • Pieter T. Elgers
  • May H. Lo
  • Dennis Murray
Part of the Advances in Computational Economics book series (AICE, volume 9)


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.


Mean Square Error Firm Size Forecast Error Earning Forecast Analyst Forecast 


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Copyright information

© Springer Science+Business Media New York 1999

Authors and Affiliations

  • Pieter T. Elgers
    • 1
  • May H. Lo
    • 2
  • Dennis Murray
    • 3
  1. 1.University of Massachussetts at AmherstUSA
  2. 2.Western New England CollegeUSA
  3. 3.University of Colorado at DenverUSA

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