Data Mining Refers to the Search for Security Return Patterns

question 35

Multiple Choice

Data mining refers to the search for security return patterns by:

• A) regressing firm stock returns against firm price multiples.
• B) calculating CARs relative to firm earnings announcements.
• C) applying various investment techniques to a set of return data.
• D) applying filter tests to very large samples of return data.

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Definitions:

Productive Units

Measures or quantities of output produced, serving as a basis for allocating costs in some accounting systems.

Machine Costing

A costing method used for products or services that primarily involve machine operations, allocating costs based on machine hours used.

Depreciation Method

A systematic approach for allocating the cost of a tangible asset over its useful life, reflecting how the asset's economic value decreases over time.

Asset's Life

The expected period over which an asset is useful and can contribute to the revenue-generating activities of a business.