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28. An analyst estimates the following AR(1) model for the earnings per share of a company: Xt=0.55+0.87Xt1+t. If the company's earnings per share currently stands

image text in transcribed 28. An analyst estimates the following AR(1) model for the earnings per share of a company: Xt=0.55+0.87Xt1+t. If the company's earnings per share currently stands at $2.55, which of the following values is closest to the two-period-ahead forecast of the model? A. $2.7685. B. $2.9586. C. Unknown since the values of t and t+1 need to be observed in order to make the forecast

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