- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 5. Sampling and Estimation
- Subject 7. Data Snooping Bias, Sample Selection Bias, Look-Ahead Bias, and Time-Period Bias
CFA Practice Question
A strategy that was based on data that suffers from look-ahead bias can seem ______.
B. unfounded
C. successful
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. |