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HSBC has cut its forecast return on equity to 12-15% and Barclays to about 13%.
"Highest offenders" in Sudan also underperformed their peer group average for forecast return on equity by 6 percentage points.
The study used two key benchmarks to evaluate the peer groups: annualized historical return on investment for the past one, three and five years and forecast return for 2008 and 2009.
The opposition seized on the analysis, published on Friday, claiming it showed Joe Hockey's forecast return to surplus was "a $100bn house of cards loaded with unfairness, a lot of which will never pass the parliament".
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More recently, Ross developed the recovery theorem, which allows the separation of probability distribution and risk aversion to forecast returns from state prices.
"In our view, Brit is considerably undervalued relative to our forecast returns which already factor in softening rates and lower investment returns.
Because investors cannot forecast returns, he says, why don't they focus on things that are predictable and controllable, like reducing risk and expenses?
That compares with forecast returns of 10-12% at other European banks such as Deutsche Bank, Barclays and Société Générale.One reason for the strong profitability of Swedish banks is their careful control of costs.
This suggests investors think either that the banks will have to issue more equity or that France will grind to a halt and they will not make their forecast returns.
For most industries, the forecast returns are consistent with actual earnings; that is, the k value is large enough.
Three notions of efficiency are introduced based on the type of information being used to forecast returns.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com