D describe the use of financial statement analysis in screening for potential equity investments; Flashcards
Describe the use of financial statement analysis in screening for potential equity investments
1
Q
Be aware that equity screens may
A
include or exclude many or all firms in an industry!
2
Q
‘Backtesting’
A
Using a specific set of criteria to screen historical data to determine how portfolios based on those criteria would have performed.
3
Q
Pay special attention to..
A
the potential effects of survivorship bias, data mining bias, and look ahead bias when evaluating the results of backtesting