Stock Analyst A: I majored in Statistics in university. However, over the last 10 years, none of my statistical technique worked to analyze the stock market. My technical projection almost always failed to predict the market. The market movement seemed totally random with no discernible pattern. Stock
Stock Analyst A: I majored in Statistics in university. However, over the last 10 years, none of my statistical technique worked to analyze the stock market. My technical projection almost always failed to predict the market. The market movement seemed totally random with no discernible pattern. Stock
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Stock Analyst A: I majored in Statistics in university. However, over the last 10 years, none of my statistical technique worked to analyze the stock market. My technical projection almost always failed to predict the market. The market movement seemed totally random with no discernible pattern.
Stock Analyst B: I disagree. Over the same 10 years period, I had been able to out-perform the same market as long as I did my due diligence with serious fundamental analysis e.g. using DCF approach.
How do you reconcile the experience differences? That is, given that both Analysts have equal experiences and skills and facing the same market condition, how would differences in their investment approaches account for their performance differences?
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