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The earnings per share of JPM Corp. for years 2003 to 2008 are as follows 2003 2.00, 2004, 2.20, 2005 2.42, 2006 2.66, 2007 2.93,
The earnings per share of JPM Corp. for years 2003 to 2008 are as follows 2003 2.00, 2004, 2.20, 2005 2.42, 2006 2.66, 2007 2.93, 2008 3.22. A. what would be the forecast of EPS for 2009 under the Random walk model and the mean reversion model (assuming a five-year mean reversion). B. actual EPS for 2009 was 3.35 which model describes EPS patterns better in this case? Why
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