Terregrossa, S.J.2024-07-182024-07-1819990960-3107https://doi.org/10.1080/096031099332401https://hdl.handle.net/11411/6335In combination forecasting the conventional approach is to combine the experts' or the analysts' forecast with a time-series model forecast. An alternative approach is to combine the analysts' forecast with a causal model forecast. The major component of the proposed expected-return/causal model is the Capital Asset Pricing Model (CAPM). It is found that combining financial analysts' consensus forecasts with CAPM simulated ex-ante forecasts consistently leads to superior forecasts of five-year earnings-per-share growth rates, on average, relative to either component forecast. This result holds over four adjacent five-year time horizons, ending in 1990, the last year of the study.eninfo:eu-repo/semantics/closedAccessArticle2-s2.0-004062975110.1080/0960310993324011532N/A1439