Tuesday, September 30, 2014

The Consensus Story

A lot of equity research analyst put down future projections based on various inputs and the mathematical aspects of projections should be cordially tied with the projections. However it remains important to note that volatility, correlations, and de-mixing effects of multiple / share and margin would help that qualitative analysis add another dimension. Hence for the all the paths, we can decide the mean IOF paths from consensus and use that adjustment in each path. This would ensure that we are using only the projections but not the volatility.

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