Asked by
Cindy Sarabia
on Oct 19, 2024Verified
You can earn abnormal returns on your investments via macro forecasting ________.
A) if you can forecast the economy at all
B) if you can forecast the economy as well as the average forecaster
C) if you can forecast the economy better than the average forecaster
D) only if you can forecast the economy with perfect accuracy
Abnormal Returns
Returns on a security or portfolio that differ significantly from the expected rate of return, often resulting from specific events.
Macro Forecasting
Macro Forecasting involves projecting the overall economic conditions and trends, such as inflation rates, interest rates, and GDP growth, to inform investment decisions.
Investments
The allocation of resources, such as time, money, or effort, in the expectation of generating an income or profit.
- Comprehend the effects of macroeconomic outlooks on decisions regarding investments.
Verified Answer
MK
Learning Objectives
- Comprehend the effects of macroeconomic outlooks on decisions regarding investments.