When using the combined earnings and dividend model,the longer the time period used is,the more risky the forecast of future earnings is.

Name: When using the combined earnings and dividend model,the longer the time period used is,the more risky the forecast of future earnings is.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

As time passes, there are more variables that can affect future earnings, making it harder to accurately predict them. Therefore, using a longer time period increases the risk of the forecast being incorrect.

When Using the Combined Earnings and Dividend Model,the Longer the Time