In: Finance
Identify the measure which best fits the description.
Standard deviation, Probability, Ex post factor, Ex ante
In the given case, the cases defined will be matched as per the characteristics of the analysis.
Following are the measures matched with the technique as follows:
1. The actual data are compared with the expected values.
Answer: Ex-ante. Ex-ante analysis in context of financial markets perform analysis based on past events also. It also predict many variables to which stock price of company may depend upon. And after such prediction, it compares the predicted value with actual value.
2. The expected data are generated by taking the average of past data in its estimation.
Answer: Ex-posto. It is the analysis in which an analyst determines the required variable or return for a given period based on the past data for the future estimation.
3. It is based on retroactive data.
Answer: Standard Deviation, Standard deviation among all the above mentioned, is computed for past data to determine the uncertainity in the future. In other words, standard deviation can be computed for only the past data.
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