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.

Question

Quizplus · Accepted Answer

Data mining in finance involves applying various investment techniques to a set of return data to identify patterns or anomalies that can be exploited for investment purposes.

Data Mining Refers to the Search for Security Return Patterns