CFA Quantitative Methods

CFA Level I: Common Probability Distributions

A probability distribution is the collection of all probabilities in the exhaustive set of events for a random variable. The distributions we cover are uniform, binomial, normal and lognormal. There are two types of random variables, discrete and continuous. Discrete random variables have a countable number of possible outcomes, while continuous random variables have an … Read more

CFA Quantitative Methods

CFA Level I: Probability Concepts

The foundation of statistical inference, which we use whenever we make decisions based on an analyst’s forecast of a company’s EPS or an economist’s forecast of the FED’s prime rate, is probability theory. With probability theory, we attempt to calculate the likelihood of a specific outcome of a random variable occurring from a set of … Read more

CFA Quantitative Methods

CFA Level I: Statistical Concepts

Statistics can refer to two different applications. Descriptive statistics take values in a data set and summarize them in order to make sense of the information in the set. Statistical inference uses probability theory and descriptive statistics to make estimates or forecasts about larger data sets given a smaller data set. The data sets that are studied … Read more

CFA Quantitative Methods

CFA Level I: Time Value of Money

The value of money changes over time. Inflation is a negative force on the value of a single dollar, and interest is an upwards force its value. Interest earned on money can be compounded if the sum totals are reinvested with interest. This means that $1 today is more valuable than $1 dollar in the … Read more

CFA Ethics

CFA Level I: Ethics

The ethics sections are comprised of some readings on rules that an analyst must live by in order to earn the designation of Certified Financial Analyst. The program also wants you to know right off the bat that there are committees in place, namely the Disciplinary Review Committee, directly overseen by the Board of Governors, … Read more

Intelligent Investor

The Intelligent Investor: Intro to Investing in Equity

The Grandfather of Value Investing Value investing is well known because it was popularized by some of the world’s most successful investors, from Graham himself to Peter Drucker, Warren Buffet and many more. I think that the school’s success has to do with its accessibility, as this methodology does not require advanced mathematics or broad financial knowledge. … Read more

CFA Exam

The CFA Level I Series: Intro and Table of Contents

The goal of the series will be to cover some of the material that the CFA presents blog format. I’ll  cover most of the topics in Book 1, but for the rest it’ll just be selected topics. Table of Contents Ethics Quantitative Measures Time Value of Money Statistical Concepts Probability Concepts Common Probability Distributions Sampling, Estimation … Read more

Themes in Global Economies 2016

There are a two main themes I’ve noticed in the new year so far. Corporate earnings are slowing, cost cutting is up Governmental QE programs are still ramping up, but easy money is not generating tax revenue The US is cutting back, but very, very slowly. Rest of world expanding. Other media focal points include emerging market … Read more