According to simulations of the prices of cyclical stocks,which of the following seems to best characterize how analysts appear to make forecasts?
A) Analysts make naive,random-walk forecasts,which are not very accurate.
B) Analysts naively make forecasts based on the extrapolation of recent trends.
C) Analysts make forecasts based on the assumptions that historical cycles will repeat as they have in the past.
D) Analysts make forecasts based on a 50/50 chance the firm will exhibit past cyclicality or break into a new trend.
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