Standards of Professional Conduct application, multiple regression, time series, machine learning and big data.
40 cards · basic cards · AI-written, checked twice. Edit anything.
- What is Material Nonpublic Information (MNPI) under professional standards?
Show answer
Information known to the member that is not available to the general public and could materially affect a security's price.- How must a member handle a conflict of interest?
Show answer
Disclose it to affected parties and eliminate or manage it to prevent harm to clients.- Can a CFA member accept a gift from a client?
Show answer
Yes, only if modest in value and not expected to influence judgment or impair independence.- What does the Independence and Objectivity standard require?
Show answer
Members must maintain professional judgment free from conflicts and be unable to be compromised by outside influence.- Define misconduct under the Standards of Professional Conduct.
Show answer
Dishonest, fraudulent, or deceptive conduct that violates applicable laws or these professional standards.- How long must a member retain records related to clients or investments?
Show answer
Seven years or as required by applicable law, whichever is longer.- What must be disclosed when presenting investment performance results?
Show answer
All material facts including calculation methodology, assumptions, limitations, and significant events affecting results.- What is the member's duty upon receipt of material nonpublic information?
Show answer
Refrain from trading on it or tipping others, and disclose the conflict appropriately to avoid violations.- What does fair dealing in client relationships require?
Show answer
Treating clients fairly when providing investment information or advice, avoiding preferential treatment based on size or relationships.- What must a member disclose about compensation arrangements?
Show answer
All material forms of compensation including fees, commissions, and incentives that could bias advice or create conflicts.- What does R-squared measure in regression analysis?
Show answer
The proportion of the dependent variable's total variance explained by the independent variables, ranging from 0 to 1.- Why is adjusted R-squared preferred over R-squared when comparing models?
Show answer
It penalizes adding irrelevant variables, preventing artificial improvement in model fit from adding more predictors.- What does the F-statistic test in multiple regression?
Show answer
Whether all regression coefficients are jointly statistically significantly different from zero, testing overall model significance.- What problem does multicollinearity create in regression?
Show answer
Inflated standard errors for coefficients, unstable estimates, and difficulty determining individual variable importance.- Define heteroskedasticity in regression analysis.
Show answer
The variance of regression residuals is not constant across observations; error spread differs at different levels of the independent variables.
FlashKeepers