________ Refers to Sorting Through Huge Amounts of Historical Data

question 10

Multiple Choice

________ refers to sorting through huge amounts of historical data to uncover systematic patterns in returns that can be exploited by traders.

• A) Data mining
• B) Pairs trading
• C) Alpha transfer
• D) Beta shifting

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Definitions:

Random Variable

A variable whose values depend on outcomes of a statistical experiment where the exact outcomes are uncertain.

Rainy Days

Days on which a significant amount of precipitation falls, typically defined as days when there is at least 0.1 inches of rainfall.

Expected Amount

The average value or mean that one anticipates to occur over a long series of trials in a random experiment.

Pair Of Dice

Two small cubes with faces marked from one to six, used in games to generate random numbers through tossing.