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Basic Question 4 of 10

There are in-sample errors (Ein) and out-of-sample errors (Eout). Which combination is an indication of poor generalization?

I. high Ein
II. low Ein
III. high Eout
IV. low Eout

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Lina

Lina

Learning Outcome Statements

describe overfitting and identify methods of addressing it;

CFA® 2025 Level II Curriculum, Volume 1, Module 6.