Heads-Up8: Who is SUE?

CFA Level II
#1

Standardized unespected earnings (SUE) =

A. Earnings surprise/ EPS0

B. Earnings surprise/Avg EPS

C. Earnings surprise/standard deviation of earnings surprise

#2

C, I like the title of this post :slight_smile:

#3

i would go for C to.

Standardizing a variable stand for x-u/sigma assuming it is normaly distributed so the standardized distribution has a mean of zero and a variance of 1, here you can make the assumption that earning suprises will have a mean of zero, so ( Earnings Surprise - 0 ) /sigma

#4

for the good explanation summerside, you get a free date with Sue.