When a database eliminates companies that cease to exist because of a merger or bankruptcy, this can

Question:

When a database eliminates companies that cease to exist because of a merger or bankruptcy, this can result in:

A. look-ahead bias.

B. back-testing bias.

C. survivorship bias.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

International Financial Statement Analysis CFA Institute Investment Series

ISBN: 9780470287668

1st Edition

Authors: Thomas R. Robinson, Hennie Van Greuning CFA, Elaine Henry, Michael A. Broihahn, Sir David Tweedie

See More Books

Question Posted: Feb 14, 2024 09:01 AM

See More Questions

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
Design a Java class that represents a cache with a fixed size. It should support operations like add, retrieve, and remove, and it should evict the least recently used item when it reaches capacity.
Randi Corp. is considering the replacement of some machinery that has zero book value and a current market value of $3,700. One possible alternative is to invest in new machinery that costs $30,900....
Prepare a report that addresses the following: What are some of the arguments for and against creating separate GAAP for SMEs? What are the similarities and differences between the "standards"...
Liquid nitrogen has a boiling point of - 195.81C at atmospheric pressure. Express this temperature (a) In degrees Fahrenheit and (b) In kelvins.
Two $0.25-\mathrm{kg}$ carts, one red and one green, are stationary on a low-friction track. The carts are initially separated by $0.50 \mathrm{~m}$. You push on the red one with a constant force...
The following comparative income statement (in thousands of dollars) for the fiscal years 2008 and 2007 was adapted from the annual report of Speedway Motorsports, Inc., owner and operator of several...
G is an individual GST registrant that files GST returns annually. At the beginning of year 20XX, G incorporated their sole proprietorship into G Inc., a wholly owned subsidiary of G, and registered...
In a comprehensive financial analysis, financial statements should be: A. used as reported without adjustment. B. adjusted after completing ratio analysis. C. adjusted for differences in accounting...
One concern when screening for stocks with low price-to-earnings ratios is that companies with low P/Es may be financially weak. What criterion might an analyst include to avoid inadvertently...
A straight 10-cm commercial-steel pipe is 1 km long and is laid on a constant slope of 5. Water at 20C flows downward, due to gravity only, estimate the flow rate in m3/h. What happens if the pipe...
1. Show that for f(x) = 2 + e* + (e 1)sin (TX). - 2 f'(x) is 0 at least once in the interval [0, 1]. 2. Let f(x) = (1-x)-1 and x0 = 0. Find the nth Taylor Polynomial P(x) for f(x) about xo. Find a...
Inductive Reasoning in Your Life. Give an example of a situation in which you used inductive reasoning in everyday life. Explain the situation, describe the steps in your thinking, and explain why it...
using a template you find online, create a new contract of sale based on the following facts: Date of contract: January 11, 2015. Sal Seller and Bill Buyer. Sal's address is 10 Sol Street. Bill's...
Find all six trigonometric functions of if the given point is on the terminal side of 0. Answer exactly. (1,2) sin (0) cos (8) tan (0) cot (0) sec (9) csc (0) Question Help: Video eBook Written...
Consider the scenario below where the square is representing a frame. You are processing an image where every object will be shown within the frame. Using Cohen- Sutherland line clipping algorithm,...
How does Table 2 compare to the discussion in the chapter? Table 2. Project Management Skills 1. Communication Skills (84) Listening Persuading 2. Organizational Skills (75) Planning Goal-setting...
In Problems 718, write the augmented matrix of the given system of equations. f0.01x0.03y = 0.06 [0.13x + 0.10y = 0.20
Describe the characteristics of companies likely to use a job costing system. Explain how these characteristics differ from companies likely to use a process costing system.
What information is included on the materials requisition form?
What is the purpose of a job cost sheet? Describe the information typically included on a job cost sheet.
Problem 1.5.9. A cord is attached to a 3.9 kg box, and pulls upward on the box at an angle of 32 relative to the horizontal. The tension in the cord is 21 N, but the box remains at rest. Determine...
A human body loses about 382 kJ of heat every hour. Assuming that an average human body is equivalent to about 65.8 kg of water, what temperature decrease would this heat transfer cause? Express your...
Let ABCDEF be a convex hexagon satisfying AB || DE, BC || EF, CD || FA, and AB DEBC EF = CD. FA. Let X, Y, and Z be the midpoints of AD, BE, and CF. Prove that the circumcenter of AACE, the...

When a database eliminates companies that cease to exist because of a merger or bankruptcy, this can

Question:

Step by Step Answer:

The correct answer to this question is C Survivorship bias Survivorship bias refers to the bias that ...View the full answer

International Financial Statement Analysis CFA Institute Investment Series

Students also viewed these Business questions