Question
In: Finance
Why is it important to carefully analyze the individual analyst estimates within consensus estimates?
Why is it important to carefully analyze the individual analyst estimates within consensus estimates?
Solutions
Expert Solution
Consensus Estimate: It is combined estiamte of all the analysts who are covering any public company. Analyst gives revenues, earning and other financial figures for quarter and year, once all analyst provide these figures then there is one consensus estimates come from this observation. One can find these estimate in many financial website..
While analyzing the individual analyst estimates it is required to carefully guage against consensus estimates, because this tells that analyst is using the same statement and somehow same scenarios and assumptions to reaching these estimates. If it estiamtes comes outside the consensus estimate then one has to look carefully what differently done by the analyst and whether his/her observations are correct. Consensus estimates also lead to market efficiency. If company performance is within consensus estimates then market will not give any knee jerk reaction but if it misses the estimates then it will reflect in share price of that public company.
jeff jeffy answered 2 years agoRelated Solutions
Why is it important that the initiation of DNA replication is carefully regulated? What is the...
Why is it important that the initiation of DNA replication is
carefully regulated? What is the proposed role of DnaA in this
process?
What extra proteins are necessary for lagging-strand synthesis
that are not needed in leading-strand synthesis?
Replication in eukaryotes is similar to that of prokaryotes.
However initiation is different. Describe how initiation of
replication occurs and how it is tied to the cell cycle.
Explain in general terms how DNA replication can occur in a
chromatin environment and...
· Why is it important for managers to carefully consider the type of organizational structure that...
· Why is it important
for managers to carefully consider the type of organizational
structure that they use to implement their strategies? Explain.
A consensus forecast is the average of a large number of individual analysts' forecasts. Suppose the...
A consensus forecast is the average of a large number
of individual analysts' forecasts. Suppose the individual forecasts
for a particular interest rate are normally distributed with a mean
of 6 percent and a standard deviation of 1.7 percent. A single
analyst is randomly selected. Find the probability that his/her
forecast is
(a) At least 3.9 percent. (Round the z
value to 2 decimal places. Round your answer to 4 decimal
places.)
(b) At most 7 percent. (Round the z...
A consensus forecast is the average of a large number of individual analysts' forecasts. Suppose the...
A consensus forecast is the average of a large number
of individual analysts' forecasts. Suppose the individual forecasts
for a particular interest rate are normally distributed with a mean
of 6 percent and a standard deviation of 1.6 percent. A single
analyst is randomly selected. Find the probability that his/her
forecast is
Round your answers to 4 decimal places.
(a) At least 3.4 percent.
(b) At most 8 percent.
(c) Between 3.4 percent and 8
percent.
Why is teamwork within the organization important to supervision today?
Why is teamwork within the organization important to supervision
today?
Why is it important to carefully track our sources in the preparation stage of speech development?
Why is it important to carefully track our sources in the
preparation stage of speech development?
An analyst estimates there is a probability of 20 percent that there will be a recession...
An analyst estimates there is a probability of 20 percent that
there will be a recession next year. He thinks the probability of
things being normal is three times the probability of a recession,
with the remaining probability assigned to a boom taking place. A
stock is expected to return -17 percent in a recession, 13 percent
under normal conditions and 21 percent if there is a boom. What is
the expected return (in percent) on this stock? Answer to...
Discuss why it is important for the APRN to explore the individual stage of development of...
Discuss why it is important for the APRN to explore the
individual stage of development of each family member when
analyzing a family’s response to an illness event. Consider your
population of interest or study. Please add references APA citation
style. Thanks
Discuss why it is important for the APRN to explore the individual stage of development of...
Discuss why it is important for the APRN to explore the
individual stage of development of each family member when
analyzing a family’s response to an illness event. Consider your
population of interest or study.
Analyze why it is important that prices are flexible in our economy. Explain why a shortage...
Analyze why it is important that prices are flexible in our
economy. Explain why a shortage might be present at a store and how
would a manager be able to solve for this problem.
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- A large Portland manufacturer wants to forecast demand for a piece of pollution-control equipment. A review...
- Capital Asset Maintenance Programs: Road Maintenance - Describe the objectives of an audit of the effectiveness...
- C++ Code while loops. 1. Ask for file name and open file. 2. Do a priming...
- QUESTION 1 (a) List down the 5 threats to Auditor’s Independence and explain each threat. (b)...
- What do we mean when we say “a preferred size”? Explain and give an example.
- Show that if P=NP then there is a polynomial-time algorithm for the following search problem: given...
- A diverging and converging lens with equal focal lengths of f = 0.5 m are placed...
ADVERTISEMENT