____________ can be used to measure forecast quality and guide in the proper adjustment of forecasts.

Related MCQs

• Alpha forecasts must be ____________ to account for less-than-perfect forecasting quality. When alpha forecasts are ____________ to account for forecast imprecision, the resulting portfolio position becomes ____________.
• Even low-quality forecasts have proven to be valuable because R-squares of only ____________ in regressions of analysts' forecasts can be used to substantially improve portfolio performance.
• This type of risk is avoidable through proper diversification.
• Standard deviation and beta both measure risk, but they are different in that
• If a portfolio manager consistently obtains a high Sharpe measure, the manager's forecasting ability __________.
• . If a Portfolio manager consistently obtains a high Sharpe’s measure, the portfolio manager has exhibited
• Which of the following is a measure of the dispersion of returns around the mean?
• In the context of the Capital Asset Pricing Model (CAPM) the relevant measure of risk is
• Which of the statements is/are false regarding Arbitrage Pricing Theory (APT)? I. APT assumes that return on any asset can be expressed as a linear function of a set of market factors or indexes. II. The arbitrage price line indicates relation between unsystematic risk and the expected return of an asset. III. While deriving the APT model, APT assumes that the error term can be reduced to zero through appropriate diversification.
• An Investor can form a portfolio that lies to the right of the optimal risky portfolio on asset allocation line by I. Lend some money at the risk free rate and invest the remainder in the optimal risky portfolio. II. Borrow some money at the risk free rate and invest in the optimal risky portfolio III. Such a portfolio cannot be formed IV. Invest only in risky assets