Bias vs. inconsistent

CFA Level II
#1

Just confused on the definition between the two.

Furthermore, is it worth knowing the definition for the level 2 exam?

Thanks,

#2

This post needs context

#3

Go back to your Level I quant:

  • An estimator is unbiased if its expected value is the population parameter it is intended to estimate
    • The sample mean is an unbiased estimator of the population mean
    • The (bias-adjusted) sample standard deviation is an unbiased estimator of the population standard deviation
  • An estimator is consistent if the expected sampling error decreases with the size of the sample
    • The sample mean is a consistent estimator of the population mean
#4

Isn’t there a third violation that we should be aware about (besides bias and inconsistency) for the exam?

We were required to know the definitions for level 1 but not sure for level 2

#5

Inefficiency: an estimator is efficient if it has the smallest expected sampling error of all unbiased, consistent estimators of the same population parameter; it is inefficient if it does not.