LOOK-AHEAD BIAS
Bias generated by using the information or data in a study or simulation that would not be available during the same period it is being analyzed. Usually, this results to an upward shift of the results in the simulation.
One example of look-ahead bias is an unrealistic assumption that earnings data becomes available right after the end of a financial period.
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Robert C. Merton
American economist who won the 1997 Nobel Memorial prize in Economic Sciences, along with Myron Scholes, for developing the Black-Sholes model, whi ...
Buy Stops Above
Recommendation to purchase a given security once a security’s price surpasses a particular resistance level by putting a buy stop order at th ...
Admitted Company
An insurance company admitted and allowed by an another state to transact insurance business despite having a domiciled status on an another state. ...
Black Box Model
Computer program, process, or system processing the information entered by the user using pre-programmed logic in order to produce the user’s ...
Form 3903
A form issued by the IRS and used by taxpayers to deduct moving expenses related to taking a new job.
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Digesting Financial Statements: Long-Lasting Liabilities
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Retirement Planning: Creating a Nest Egg
Last time, we discuss the different income sources for building a retirement fund. We shall now tackle the ways to create a retirement nest egg.
Buying a Home: Choosing the Best Location
The first consideration when buying a new house is choosing the place where you want to live, regardless if this will serve as an investment or upg ...
Can You Afford the Renovation Cost?
Do you want to know if your current home can withstand any renovation? Consult the following professionals first for guidance.
Buying a Home: Closing the Deal
It’s almost done! With just a few steps away, the house that you have been dreaming of will be yours.
