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Free CFA Quantitative Methods Practice Questions & Answers

1,200 exam-style Quantitative Methods questions. Pick your answer, hit Check answer, and see the worked solution — free to start, no signup.

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Question 661

A feature that is highly predictive but extremely unstable across different samples is likely causing:

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Question 662

Clustering is best described as a method that:

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Question 663

K‑means is sensitive to:

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Question 664

A silhouette score near –1 indicates:

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Question 665

Clusters that are very far apart but internally loose may indicate:

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Question 666

What is the main purpose of multiple linear regression in an investment context?

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Question 667

In a multiple regression model, the dependent variable is:

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Question 668

The intercept in a multiple regression model represents:

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Question 669

A “partial regression coefficient” refers to:

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Question 670

Which of the following is a typical use of multiple regression in finance?

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Question 671

In multiple regression, the error term captures:

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Question 672

Which of the following is a key decision when specifying a multiple regression model?

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Question 673

If the dependent variable is a continuous return, a common model type is:

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Question 674

If the dependent variable is a 0/1 indicator (e.g., default vs no default), a more appropriate model is:

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Question 675

In multiple regression, adding a relevant independent variable typically:

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Question 676

The number of observations in a regression should be:

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Question 677

A regression model is called “linear” because it is linear in:

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Question 678

Which of the following is an example of a multiple regression equation?

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Question 679

In multiple regression, “holding other variables constant” means:

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Question 680

A common goal of multiple regression in portfolio analysis is to:

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Question 681

The error term in a regression model is assumed to have:

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Question 682

In a regression context, “prediction” refers to:

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Question 683

A regression model with one dependent variable and three independent variables is called:

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Question 684

In multiple regression, the term “residual” refers to:

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Question 685

The coefficient of determination ((R^2)) measures:

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Question 686

A higher (R^2) generally indicates:

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Question 687

The F-test in multiple regression is used to test:

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Question 688

A statistically significant F-statistic suggests:

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Question 689

A t-statistic for a slope coefficient tests:

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Question 690

A p-value for a coefficient represents:

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Free CFA Quantitative Methods Practice Questions & Answers

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