CFA Practice Question

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CFA Practice Question

A strategy that was based on data that suffers from look-ahead bias can seem ______.

A. biased
B. unfounded
C. successful
Correct Answer: C

Look-ahead biased data can make a strategy appear successful when in actuality the apparent success results from perfect forecasting ability.

User Contributed Comments 3

User Comment
fredpat01 Could someone explain this?
EEEEvia not me
EMMADADA Look-ahead bias occurs when studies assume that fundamental info is available when it is not. So the strategy may seem successful under some assumptions.
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