CFA Practice Question

There are 208 practice questions for this study session.

CFA Practice Question

Unlike probit or logit models, discriminant analysis models yield:
A. a score which is used to predict the future occurrence of a qualitative dependent variable.
B. financial ratios useful to equity and credit analysts.
C. a probability that the qualitative dependent variable is present.
Explanation: Discriminant analysis models yield a score, used to predict the future occurrence of a qualitative dependent variable. For example, Altman's Zeta (r) analysis yields a probability of bankruptcy.

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