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    A. Define "Earnings Surprise" b. One measure for expected earnings this quarter (t) could be earnings for the same quarter last year (t-4). List some of the disadvantages to using this measure. c. Suggest a better measure for expected earnings.

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    A. Define "Earnings Surprise"
    b. One measure for expected earnings this quarter (t) could be earnings for the same quarter last year (t-4). List some of the disadvantages to using this measure.
    c. Suggest a better measure for expected earnings.

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    Solution Summary

    The solution defines earnings surprise and suggests a better measure for expected earnings.

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