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!

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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.

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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

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