Concept: Bootstrap Resampling

CFA Level I Glossary

Bootstrap resampling is a simulation method that estimates the sampling distribution of a statistic by repeatedly drawing with replacement from the original sample. Each draw creates a new pseudo-sample of the same size, and you recompute the statistic many times. The resulting cloud of outcomes shows uncertainty when the true population distribution is unknown. Do not confuse this with bootstrapping a spot curve from bond prices.

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