Time period bias reasonable, business, determine, completed

tarik64

In one of the question it was mentioned that sample of 10 years of data(stock returns) is not time period biased(to estimate the value of stock), as full business cycle is completed. My assumption is that recession and booms cycles are typically of 4 years each, so this sounds reasonable. However, I have seen question for long and short time period bias. Long I guess I have seen for 40 years and short for 4-5 years. Do you know if there are any specific rules to be followed to determine this bias?

trogulj

your assumption is not what this test is about- it's what they tell you it is. So if they say 10 years is not biased cuz that's long enough of a time, then that's it.

leadcfa

Dude questions are not always going to have 10 years. That is the reason why I asked. You can't simply mug this up and plan to attempt the exam.