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Consider this statement: To calculate the SUE, we start with unexpected earnings, which is the reported earnings minus the expected or forecasted earnings. We then

Consider this statement:

To calculate the SUE, we start with unexpected earnings, which is the reported earnings minus the expected or forecasted earnings. We then calculate the standard deviation of unexpected earnings for several recent quarters, such as for the last 20 quarters. SUE is then the ratio of unexpected earnings to the standard deviation of unexpected earnings.

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