CFA Level I · CFA Level I Exam · Introduction to Financial Data Science
A bank wants to extract sentiment from thousands of customer emails and regulatory filings. Which technology is most appropriate for this task?
Natural language processing is most appropriate. It lets computers analyze unstructured human language such as emails and filings to measure sentiment. Distributed ledgers record transactions and robo-advisors automate portfolio services, so neither is designed to interpret text.
- ADistributed ledger technology
- BNatural language processingCorrect
- CRobo-advisory portfolio rebalancing
Explanation
Natural language processing interprets and analyzes human language in text, making it suitable for sentiment extraction. Distributed ledger technology records and shares transactions and does not analyze text. Robo-advisors automate portfolio advice and rebalancing.
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