{"id":38053,"date":"2024-06-03T06:54:09","date_gmt":"2024-06-03T06:54:09","guid":{"rendered":"https:\/\/analystprep.com\/study-notes\/?p=38053"},"modified":"2024-11-13T20:02:43","modified_gmt":"2024-11-13T20:02:43","slug":"big-data","status":"publish","type":"post","link":"https:\/\/analystprep.com\/study-notes\/cfa-level-iii\/big-data\/","title":{"rendered":"Big Data"},"content":{"rendered":"<p><iframe loading=\"lazy\" src=\"\/\/www.youtube.com\/embed\/HSen3JaHKwE\" width=\"611\" height=\"343\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p>Big data, a term that encapsulates extremely large datasets, can be either structured or unstructured. Structured data, such as traditional financial statements and market data, is organized in a predefined manner, making it easy to comprehend. On the other hand, unstructured or &#8220;alternative&#8221; data lacks a recognizable structure. The use of this type of data in the investment industry has been limited until recent advancements in technology and computational algorithms.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-large wp-image-40522\" src=\"https:\/\/analystprep.com\/study-notes\/wp-content\/uploads\/2024\/06\/Img_29-1024x413.jpg\" alt=\"\" width=\"1024\" height=\"413\" srcset=\"https:\/\/analystprep.com\/study-notes\/wp-content\/uploads\/2024\/06\/Img_29-1024x413.jpg 1024w, https:\/\/analystprep.com\/study-notes\/wp-content\/uploads\/2024\/06\/Img_29-300x121.jpg 300w, https:\/\/analystprep.com\/study-notes\/wp-content\/uploads\/2024\/06\/Img_29-768x310.jpg 768w, https:\/\/analystprep.com\/study-notes\/wp-content\/uploads\/2024\/06\/Img_29-1536x619.jpg 1536w, https:\/\/analystprep.com\/study-notes\/wp-content\/uploads\/2024\/06\/Img_29-400x161.jpg 400w, https:\/\/analystprep.com\/study-notes\/wp-content\/uploads\/2024\/06\/Img_29.jpg 1590w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<h3>Structured Data<\/h3>\n<p>Structured data is commonly used in the investment industry. A company&#8217;s balance sheet or stock market indices are examples of structured data.<\/p>\n<h3>Unstructured Data<\/h3>\n<p>Unstructured data, also known as &#8220;alternative&#8221; data, is complex and lacks a recognizable structure. Examples include social media sentiment towards a brand, satellite images indicating the level of activity in a retail store&#8217;s parking lot, or credit card transaction data revealing consumer spending habits.<\/p>\n<blockquote>\n<h3>Practice Questions<\/h3>\n<p><strong>Question 1: <\/strong> In the investment industry, the use of data is crucial for making informed decisions. This data can be categorized into structured and unstructured data. Which type of data has seen an increase in its usage in the investment industry?<\/p>\n<ol style=\"list-style-type: upper-alpha; text-align: left;\">\n<li>Structured data<\/li>\n<li>Unstructured data<\/li>\n<li>Both structured and unstructured data<\/li>\n<\/ol>\n<p>Answer: <strong> Choice B is correct. <\/strong><\/p>\n<p>Unstructured or &#8220;alternative&#8221; data has seen an increase in its usage in the investment industry. With the advent of big data and advancements in technology and computational algorithms, the investment industry has been able to harness the power of unstructured data. This type of data, which includes sources like satellite images, textual information, credit card payment information, and online mentions of a product or brand, provides a wealth of information that can be used to make informed investment decisions. Unstructured data can provide insights that are not readily available from traditional structured data sources, such as financial statements and market data. For example, satellite images can provide real-time information on the activities of a company, such as the level of inventory in its warehouses or the number of cars in its parking lots. Similarly, online mentions of a product or brand can provide insights into consumer sentiment and potential sales trends. Therefore, the use of unstructured data in the investment industry has increased significantly in recent years.<\/p>\n<p><strong> Choice A is incorrect. <\/strong> While structured data, which includes traditional financial statements and market data, continues to be used in the investment industry, its usage has not increased to the same extent as unstructured data. This is because structured data is already well-utilized in the industry, and the recent advancements in technology and computational algorithms have primarily enabled the increased usage of unstructured data.<\/p>\n<p><strong> Choice C is incorrect. <\/strong> While both structured and unstructured data are used in the investment industry, the question specifically asks about the type of data that has seen an increase in its usage. As explained above, the usage of unstructured data has increased significantly in recent years, while the usage of structured data has not increased to the same extent.<\/p>\n<\/blockquote>\n<h3>Glossary<\/h3>\n<ul>\n<li><b>Structured Data:<\/b> Data that is organized in a predefined manner and is easy to understand.<\/li>\n<li><b>Unstructured Data:<\/b> Data that lacks a recognizable structure and is complex in nature.<\/li>\n<\/ul>\n<p><b>Portfolio Management Pathway Volume 1: Learning Module 2: Active Equity Investing: Strategies;<\/b> LOS 2(f): Analyze factor-based active strategies, including their rationale and associated processes<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Big data, a term that encapsulates extremely large datasets, can be either structured or unstructured. Structured data, such as traditional financial statements and market data, is organized in a predefined manner, making it easy to comprehend. On the other hand,&#8230;<\/p>\n","protected":false},"author":17,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[571],"tags":[],"class_list":["post-38053","post","type-post","status-publish","format-standard","hentry","category-cfa-level-iii","blog-post","no-post-thumbnail","animate"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Big Data - CFA, FRM, and Actuarial Exams Study Notes<\/title>\n<meta name=\"description\" content=\"Explore the impact of big data in investments. Learn how structured and unstructured data can be leveraged to make informed decisions.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/analystprep.com\/study-notes\/cfa-level-iii\/big-data\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Big Data - CFA, FRM, and Actuarial Exams Study Notes\" \/>\n<meta property=\"og:description\" content=\"Explore the impact of big data in investments. Learn how structured and unstructured data can be leveraged to make informed decisions.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/analystprep.com\/study-notes\/cfa-level-iii\/big-data\/\" \/>\n<meta property=\"og:site_name\" content=\"CFA, FRM, and Actuarial Exams Study Notes\" \/>\n<meta property=\"article:published_time\" content=\"2024-06-03T06:54:09+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-11-13T20:02:43+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/analystprep.com\/study-notes\/wp-content\/uploads\/2024\/06\/Img_29.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1590\" \/>\n\t<meta property=\"og:image:height\" content=\"641\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Eric A\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Eric A\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/analystprep.com\\\/study-notes\\\/cfa-level-iii\\\/big-data\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/analystprep.com\\\/study-notes\\\/cfa-level-iii\\\/big-data\\\/\"},\"author\":{\"name\":\"Eric A\",\"@id\":\"https:\\\/\\\/analystprep.com\\\/study-notes\\\/#\\\/schema\\\/person\\\/41f2edd4aa576d241f81c7be5f7ab2ff\"},\"headline\":\"Big Data\",\"datePublished\":\"2024-06-03T06:54:09+00:00\",\"dateModified\":\"2024-11-13T20:02:43+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/analystprep.com\\\/study-notes\\\/cfa-level-iii\\\/big-data\\\/\"},\"wordCount\":542,\"image\":{\"@id\":\"https:\\\/\\\/analystprep.com\\\/study-notes\\\/cfa-level-iii\\\/big-data\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/analystprep.com\\\/study-notes\\\/wp-content\\\/uploads\\\/2024\\\/06\\\/Img_29-1024x413.jpg\",\"articleSection\":[\"Level III of the CFA\u00ae Program\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/analystprep.com\\\/study-notes\\\/cfa-level-iii\\\/big-data\\\/\",\"url\":\"https:\\\/\\\/analystprep.com\\\/study-notes\\\/cfa-level-iii\\\/big-data\\\/\",\"name\":\"Big Data - CFA, FRM, and Actuarial Exams Study Notes\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/analystprep.com\\\/study-notes\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/analystprep.com\\\/study-notes\\\/cfa-level-iii\\\/big-data\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/analystprep.com\\\/study-notes\\\/cfa-level-iii\\\/big-data\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/analystprep.com\\\/study-notes\\\/wp-content\\\/uploads\\\/2024\\\/06\\\/Img_29-1024x413.jpg\",\"datePublished\":\"2024-06-03T06:54:09+00:00\",\"dateModified\":\"2024-11-13T20:02:43+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/analystprep.com\\\/study-notes\\\/#\\\/schema\\\/person\\\/41f2edd4aa576d241f81c7be5f7ab2ff\"},\"description\":\"Explore the impact of big data in investments. Learn how structured and unstructured data can be leveraged to make informed decisions.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/analystprep.com\\\/study-notes\\\/cfa-level-iii\\\/big-data\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/analystprep.com\\\/study-notes\\\/cfa-level-iii\\\/big-data\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/analystprep.com\\\/study-notes\\\/cfa-level-iii\\\/big-data\\\/#primaryimage\",\"url\":\"https:\\\/\\\/analystprep.com\\\/study-notes\\\/wp-content\\\/uploads\\\/2024\\\/06\\\/Img_29.jpg\",\"contentUrl\":\"https:\\\/\\\/analystprep.com\\\/study-notes\\\/wp-content\\\/uploads\\\/2024\\\/06\\\/Img_29.jpg\",\"width\":1590,\"height\":641},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/analystprep.com\\\/study-notes\\\/cfa-level-iii\\\/big-data\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/analystprep.com\\\/study-notes\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Big Data\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/analystprep.com\\\/study-notes\\\/#website\",\"url\":\"https:\\\/\\\/analystprep.com\\\/study-notes\\\/\",\"name\":\"CFA, FRM, and Actuarial Exams Study Notes\",\"description\":\"Question Bank and Study Notes for the CFA, FRM, and Actuarial exams\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/analystprep.com\\\/study-notes\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/analystprep.com\\\/study-notes\\\/#\\\/schema\\\/person\\\/41f2edd4aa576d241f81c7be5f7ab2ff\",\"name\":\"Eric A\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/cdf79efae139881cd16f8a241a402219e860b1657cb0771f2df4ddd3f6d1c921?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/cdf79efae139881cd16f8a241a402219e860b1657cb0771f2df4ddd3f6d1c921?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/cdf79efae139881cd16f8a241a402219e860b1657cb0771f2df4ddd3f6d1c921?s=96&d=mm&r=g\",\"caption\":\"Eric A\"},\"url\":\"https:\\\/\\\/analystprep.com\\\/study-notes\\\/author\\\/eric-a\\\/\"}]}<\/script>\n<meta property=\"og:video\" content=\"https:\/\/www.youtube.com\/embed\/HSen3JaHKwE\" \/>\n<meta property=\"og:video:type\" content=\"text\/html\" \/>\n<meta property=\"og:video:duration\" content=\"2265\" \/>\n<meta property=\"og:video:width\" content=\"480\" \/>\n<meta property=\"og:video:height\" content=\"270\" \/>\n<meta property=\"ya:ovs:adult\" content=\"false\" \/>\n<meta property=\"ya:ovs:upload_date\" content=\"2024-06-03T06:54:09+00:00\" \/>\n<meta property=\"ya:ovs:allow_embed\" content=\"true\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Big Data - CFA, FRM, and Actuarial Exams Study Notes","description":"Explore the impact of big data in investments. Learn how structured and unstructured data can be leveraged to make informed decisions.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/analystprep.com\/study-notes\/cfa-level-iii\/big-data\/","og_locale":"en_US","og_type":"article","og_title":"Big Data - CFA, FRM, and Actuarial Exams Study Notes","og_description":"Explore the impact of big data in investments. Learn how structured and unstructured data can be leveraged to make informed decisions.","og_url":"https:\/\/analystprep.com\/study-notes\/cfa-level-iii\/big-data\/","og_site_name":"CFA, FRM, and Actuarial Exams Study Notes","article_published_time":"2024-06-03T06:54:09+00:00","article_modified_time":"2024-11-13T20:02:43+00:00","og_image":[{"width":1590,"height":641,"url":"https:\/\/analystprep.com\/study-notes\/wp-content\/uploads\/2024\/06\/Img_29.jpg","type":"image\/jpeg"}],"author":"Eric A","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Eric A","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/analystprep.com\/study-notes\/cfa-level-iii\/big-data\/#article","isPartOf":{"@id":"https:\/\/analystprep.com\/study-notes\/cfa-level-iii\/big-data\/"},"author":{"name":"Eric A","@id":"https:\/\/analystprep.com\/study-notes\/#\/schema\/person\/41f2edd4aa576d241f81c7be5f7ab2ff"},"headline":"Big Data","datePublished":"2024-06-03T06:54:09+00:00","dateModified":"2024-11-13T20:02:43+00:00","mainEntityOfPage":{"@id":"https:\/\/analystprep.com\/study-notes\/cfa-level-iii\/big-data\/"},"wordCount":542,"image":{"@id":"https:\/\/analystprep.com\/study-notes\/cfa-level-iii\/big-data\/#primaryimage"},"thumbnailUrl":"https:\/\/analystprep.com\/study-notes\/wp-content\/uploads\/2024\/06\/Img_29-1024x413.jpg","articleSection":["Level III of the CFA\u00ae Program"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/analystprep.com\/study-notes\/cfa-level-iii\/big-data\/","url":"https:\/\/analystprep.com\/study-notes\/cfa-level-iii\/big-data\/","name":"Big Data - CFA, FRM, and Actuarial Exams Study Notes","isPartOf":{"@id":"https:\/\/analystprep.com\/study-notes\/#website"},"primaryImageOfPage":{"@id":"https:\/\/analystprep.com\/study-notes\/cfa-level-iii\/big-data\/#primaryimage"},"image":{"@id":"https:\/\/analystprep.com\/study-notes\/cfa-level-iii\/big-data\/#primaryimage"},"thumbnailUrl":"https:\/\/analystprep.com\/study-notes\/wp-content\/uploads\/2024\/06\/Img_29-1024x413.jpg","datePublished":"2024-06-03T06:54:09+00:00","dateModified":"2024-11-13T20:02:43+00:00","author":{"@id":"https:\/\/analystprep.com\/study-notes\/#\/schema\/person\/41f2edd4aa576d241f81c7be5f7ab2ff"},"description":"Explore the impact of big data in investments. Learn how structured and unstructured data can be leveraged to make informed decisions.","breadcrumb":{"@id":"https:\/\/analystprep.com\/study-notes\/cfa-level-iii\/big-data\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/analystprep.com\/study-notes\/cfa-level-iii\/big-data\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/analystprep.com\/study-notes\/cfa-level-iii\/big-data\/#primaryimage","url":"https:\/\/analystprep.com\/study-notes\/wp-content\/uploads\/2024\/06\/Img_29.jpg","contentUrl":"https:\/\/analystprep.com\/study-notes\/wp-content\/uploads\/2024\/06\/Img_29.jpg","width":1590,"height":641},{"@type":"BreadcrumbList","@id":"https:\/\/analystprep.com\/study-notes\/cfa-level-iii\/big-data\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/analystprep.com\/study-notes\/"},{"@type":"ListItem","position":2,"name":"Big Data"}]},{"@type":"WebSite","@id":"https:\/\/analystprep.com\/study-notes\/#website","url":"https:\/\/analystprep.com\/study-notes\/","name":"CFA, FRM, and Actuarial Exams Study Notes","description":"Question Bank and Study Notes for the CFA, FRM, and Actuarial exams","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/analystprep.com\/study-notes\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/analystprep.com\/study-notes\/#\/schema\/person\/41f2edd4aa576d241f81c7be5f7ab2ff","name":"Eric A","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/cdf79efae139881cd16f8a241a402219e860b1657cb0771f2df4ddd3f6d1c921?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/cdf79efae139881cd16f8a241a402219e860b1657cb0771f2df4ddd3f6d1c921?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/cdf79efae139881cd16f8a241a402219e860b1657cb0771f2df4ddd3f6d1c921?s=96&d=mm&r=g","caption":"Eric A"},"url":"https:\/\/analystprep.com\/study-notes\/author\/eric-a\/"}]},"og_video":"https:\/\/www.youtube.com\/embed\/HSen3JaHKwE","og_video_type":"text\/html","og_video_duration":"2265","og_video_width":"480","og_video_height":"270","ya_ovs_adult":"false","ya_ovs_upload_date":"2024-06-03T06:54:09+00:00","ya_ovs_allow_embed":"true"},"_links":{"self":[{"href":"https:\/\/analystprep.com\/study-notes\/wp-json\/wp\/v2\/posts\/38053","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/analystprep.com\/study-notes\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/analystprep.com\/study-notes\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/analystprep.com\/study-notes\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/analystprep.com\/study-notes\/wp-json\/wp\/v2\/comments?post=38053"}],"version-history":[{"count":8,"href":"https:\/\/analystprep.com\/study-notes\/wp-json\/wp\/v2\/posts\/38053\/revisions"}],"predecessor-version":[{"id":39177,"href":"https:\/\/analystprep.com\/study-notes\/wp-json\/wp\/v2\/posts\/38053\/revisions\/39177"}],"wp:attachment":[{"href":"https:\/\/analystprep.com\/study-notes\/wp-json\/wp\/v2\/media?parent=38053"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/analystprep.com\/study-notes\/wp-json\/wp\/v2\/categories?post=38053"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/analystprep.com\/study-notes\/wp-json\/wp\/v2\/tags?post=38053"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}