CFA

Stakeholders correct answers Individuals or groups of individuals who could be affected either directly or indirectly by a decision (Have a stake in decision) Ethics correct answers A set of moral principles and rules of conduct that provide guidance for our behavior Moral/ethical principles correct answers Beliefs about what is good, acceptable, obligatory, and what is bad, unacceptable, or forbidden Do moral/ethical principles pertain to yourself or others? correct answers...

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,...