Level 1 CFA® Exam:
Screening for Equity Investments

Screening for equity investments is reducing the spectrum of equity investments using different tools and ratios, so we can focus on the most promising investments that are in line with some predefined criteria.

1. Screening for equity investments is reducing the spectrum of equity investments using different tools and ratios, so we can focus on the most promising investments.
2. Back-testing has some limitations in the form of biases: data-snooping bias, survivorship bias, and look-ahead bias.