CFA Practice Question

There are 155 practice questions for this study session.

CFA Practice Question

There are in-sample errors (Ein) and out-of-sample errors (Eout). Which combination is an indication of poor generalization?

I. high Ein
II. low Ein
III. high Eout
IV. low Eout
Correct Answer: II and III

Difference between the fit on training data and test data measures the modelís ability to generalize.

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