We show that understanding the role of analysts' forecast bias is central to discovering the behavior that causes some … dispersion contribute significantly to many important anomalies. We first explain how forecast bias produces significant negative … stocks to have high analyst forecast dispersion. This finding is important because stocks with high analyst forecast …

future. In addition, we draw on some contemporary measures of forecast quality (prediction-realization diagram, test of …

groups more than forecasts by laypeople; I observe a home bias in all subject groups, which can be mitigated by information … signals; all subject groups expect lower forecast errors for financial professionals than for laypeople, hence I also find …