CFA Practice Question

There are 208 practice questions for this study session.

CFA Practice Question

One model specification principle that is the opposite of data mining is:

A. The model should be parsimonious.
B. The model should be grounded in cogent economic reasoning.
C. The functional form chosen for the variables in the regression should be appropriate given the nature of the variables.
Correct Answer: B

Economic reasoning should be supplied behind the choice of variables and it should make sense.

User Contributed Comments 0

You need to log in first to add your comment.