Which of these is a characteristic of financial data?
A) They are observed at much lower frequencies than macroeconomic data
B) The number of observations is usually very small
C) They are considered to be very noisy
D) It is easy to separate underlying trends from random and uninteresting features

Question

Quizplus · Accepted Answer

Financial data are considered to be very noisy due to the high volume of transactions and the influence of numerous unpredictable factors, making it challenging to discern clear patterns or trends without sophisticated analysis.

Which of These Is a Characteristic of Financial Data