- CFA Exams
- CFA Level I Exam
- Topic 4. Financial Statement Analysis
- Learning Module 11. Financial Analysis Techniques
- Subject 1. Analytical Tools and Techniques
CFA Practice Question
An investor is trying to learn more about the evolution of the price of a certain stock he owns. He decides to collect some data for analysis. How should he go about this task?
B. He should collect cross-sectional data.
C. He should collect a stratified random sample.
A. He should collect time series data.
B. He should collect cross-sectional data.
C. He should collect a stratified random sample.
Correct Answer: A
He should collect time series data. Since he is interested in the evolution of the stock price over time, he needs to collect observations over multiple equally spaced periods, i.e., time series data.
User Contributed Comments 4
| User | Comment |
|---|---|
| Raok | this is quite tricky |
| EminYus | the key word here is evolution which states that he needs some sort of history to relate to (time-series data satisfies this) |
| johntan1979 | You can't observe evolution with cross-sectional or stratified. |
| praj24 | Just think it out logically. He owns a stock, wants to see the price change throughout a time period, therefore his observations will be over a time series. |