Comparison of model valuation errors over time. These figures depict medians of absolute valuation errors (med(|ε|)) from the three base machine learning models and those from traditional models across time. Panels A, B, and C compare models targeting m2b, v2a, and v2s, respectively. Panel D compares base machine learning models targeting m2b, v2a and v2s and those from RRV (targeting lnm) and BG (targeting m). Panel E compares the machine models. ε is the percentage valuation error: ε:=(M̂/M)−1. M̂ is the…
