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Predicting Long-Term Stock Return Volatility: Implications for Accounting and Valuations of Equity Derivatives.

Andrew W. Alford; James R. Boatsman

The Accounting Review 1995

Abstract Examines empirically the prediction of long-term stock return volatility. Using historical volatility to predict five-year monthly volatility; Constructing a forecast based on historical volatilities of comparable films; Forming a shrinkage forecast by adjusting a historical forecast toward a comparable-firms forecast.

DOI
10.2308/tar-9512014359
Volume
70 (4)
Pages
599-618
Language
en
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