Empirical research has demonstrated that the sources of error in security analysts' forecasts can be found most often in misjudgments about the

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Empirical research has shown that security analysts' forecasts are particularly prone to errors in their judgments about the specific firms they are analyzing. They may overlook important factors or inaccurately interpret financial data related to the company, leading to incorrect forecasts. Misjudgments about the market, economy, and industry can also contribute to errors, but they are less frequent sources of error according to research.

Empirical Research Has Demonstrated That the Sources of Error in Security