Which one of the following statements is true concerning alternative forecast accuracy measures? a) Mean squared error is usually highly correlated with trading rule profitability b) Mean absolute error provides a quadratic loss function c) Mean absolute percentage error is a useful measure for evaluating asset return forecasts d) Mean squared error penalises large forecast errors disproportionately more than small forecast errors

Which one of the following statements is true concerning alternative forecast accuracy measures? a) Mean squared error is usually highly correlated with trading rule profitability b) Mean absolute...

Which one of the following statements is true concerning alternative forecast accuracy measures?

a)	Mean squared error is usually highly correlated with trading rule profitability
b)	Mean absolute error provides a quadratic loss function
c)	Mean absolute percentage error is a useful measure for evaluating asset return forecasts
d)	Mean squared error penalises large forecast errors disproportionately more than small forecast errors

May 26, 2022

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