CFA Level 1 - 101 Must Knows- 368 questions- with complete solutions
Addition Rule of Probability correct answer: ADDITION: P(A or B) = P(A) + P(B) - P(AB) Roy's Safety First Criterion correct answer: Safety First Ratio = (E(R) - Rₜ) / σ Larger ratio is better If (Rₜ) is risk free rate, then it becomes Sharpe Ratio Sharpe Ratio correct answer: Sharpe Ratio = (E(R) - RFR) / σ Larger ratio is better If (Rt) is higher than RFR, then it becomes Safety First Ratio Central Limit Theorem correct answer: If we take samples of a population, with a large enough sample size, the distribution of all sample means is normal with: - A mean equal to the population mean - A variance equal to the population variance divided by sample size (σ² / n) Standard Error of Sample Mean correct answer: σ / n^½ Binomial Probability correct answer: One of two possible outcomes (i.e. success/failure) Possible outcomes can be demonstrated in binomial tree
Geschreven voor
- Instelling
- CFA - Chartered Financial Analyst
- Vak
- CFA - Chartered Financial Analyst
Documentinformatie
- Geüpload op
- 25 mei 2023
- Aantal pagina's
- 72
- Geschreven in
- 2022/2023
- Type
- Tentamen (uitwerkingen)
- Bevat
- Vragen en antwoorden
Onderwerpen
-
cfa level 1 101 must knows 368 questions with complete solutions
Ook beschikbaar in voordeelbundel