Question

9. You can earn abnormal returns on your investments via macro forecasting ______.

A. if you can forecast the economy at all
B. if you can forecast the economy as well as the average forecaster
C. if you can forecast the economy better than the average forecaster
D. only if you can forecast the economy with perfect accuracy

Answer 1

To earn abnormal returns on investments via macro forecasting, you need to forecast the economy better than the average forecaster.

Step-by-step explanation:

In order to earn abnormal returns on your investments through macro forecasting, you need to be able to forecast the economy better than the average forecaster. To earn abnormal returns on investments via macro forecasting, you need to forecast the economy better than the average forecaster.

This means your predictions should be more accurate and reliable than those made by the majority of forecasters. However, it is important to note that even financial professionals find it difficult to predict future expectations and choose stocks that will rise in the future.