Survivorship bias: related pages

Back-testing
The testing of a financial model by using it on past date and then comparing the 'predictions' to what actually happened.
Risk premium
The difference between the rate of return on a security (or a market or an investment) and the risk free rate of return.
Expected return
The average of all possible returns an investment will produce, weighted by probability.
Multi-period sampling bias
The bias introduced into index calculations bu the exlusion of constituents with short histories.
Look ahead bias
Any of several types of bias caused by changes over time or the inclusion of data not available in a period being modelled.
Confirmation bias
The tendency to favour evidence which supports a particular conclusion. Hard to avoid, especially in financial modelling.
Copyright Graeme Pietersz © 2005-2019