CFA Practice Question

There are 155 practice questions for this study session.

CFA Practice Question

If you need to group 1,000 companies based on their financial characteristics (e.g. total assets, total revenue, costs and profits) and operating characteristics (e.g. employee headcount), you will most likely to use ______ for the task.

A. K-means clustering
C. K-Nearest Neighbor
Correct Answer: A

You want to group similar companies but you don't know how to define "similar" in this case - an unsupervised learning approach is appropriate.

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