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Chartered Financial Analyst Level 2

Chartered Financial Analyst Level 2

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84 An analyst is launching a new portfolio that uses an equity investment strategy based on a multifactor approach. The analyst has identified five fundamental factors and has conducted backtests on different strategies using point-in-time data adjusted for reporting lags and data revisions. Without considering prior inference, the analyst focuses on the statistical results and selects the strategy with the lowest p-value. This approach:

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