What is the random walk model, Accounting Basics

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What is the random walk model

John Right, an analyst with Stock Pickers Inc., claims, "It is not worth my time to develop detailed forecasts of sales growth, profit margins, etcetera, to make earnings projections. I can be almost as accurate, at virtually no cost, using the random walk model to forecast earnings." What is the random walk model? Do you agree or disagree with John Right's forecast strategy? Why or why not?

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Accounting Basics: What is the random walk model

Reference No:- TGS086989

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Investment account-net income and retained earnings

Q : Firm overstate or understate its income statement

Q : Discuss the feasibility of geralds compensation agreement

Q : Supplies expense account problem

Q : What is the random walk model

Q : Generate forecasts of the outlays

Q : Name the pattern of return on equity implied by assumptions

Q : Journalize the declaration-two independent assumptions

Q : Excessiveness of executive pay

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Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: What is the random walk model

Reference No:- TGS086989

Recent Questions Asked Accounting Basics

Q : Investment account-net income and retained earnings

Q : Firm overstate or understate its income statement

Q : Discuss the feasibility of geralds compensation agreement

Q : Supplies expense account problem

Q : What is the random walk model

Q : Generate forecasts of the outlays

Q : Name the pattern of return on equity implied by assumptions

Q : Journalize the declaration-two independent assumptions

Q : Excessiveness of executive pay

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