I can be as accurate at virtually no cost by using some


Critically evaluate the following statement made by a quantitative fund investment manager: "It is not worth the time to develop fundamentals-based forecasts of earnings or cash flows, and there is no point in using sophisticated equity valuation models to determine the value of a stock. I can be as accurate, at virtually no cost, by using some random walk models to forecast earnings and free cash flow, and some technical trading rules to spot mispriced stocks."

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