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Basic Question 0 of 6
One model specification principle that is the opposite of data mining is:
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.
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.
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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
Learning Outcome Statements
describe a binomial interest rate tree framework;
CFA® 2025 Level II Curriculum, Volume 4, Module 27.