CFA Level I · CFA Level I Exam · Introduction to Financial Data Science
A data scientist has a dataset of daily closing prices for 500 stocks over 10 years, with each stock observed on the same trading days. This dataset is best described as:
The dataset is best described as panel data, because it combines observations on many stocks (cross-section) with repeated observations over time (time series). Cross-sectional data would cover only a single point in time, and unstructured data refers to non-tabular content such as text or images.
- Apanel dataCorrect
- Bcross-sectional data
- Cunstructured data
Explanation
The data follow many entities (stocks) across multiple time periods, which is panel data. Cross-sectional data captures many entities at a single point in time. Unstructured data refers to formats like text or images without a tabular organization.
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