New method for estimating stock returns could revolutionize investment strategies!
The article compares different methods for estimating and testing models that predict stock returns. They looked at two common methods and a new one called "truncated" maximum likelihood. The new method performed well in terms of accuracy and precision, but was not as reliable for making conclusions as the usual method. The study found that a certain estimator was more precise but had more bias, while another estimator was less biased but less precise.