Data Types and Organization Explained | CFA Level I Quantitative Methods Welcome to our guide on data types and organization! Here, we’ll explore different approaches to organizing, visualizing, and describing data. We’ll cover numerical vs. categorical data, cross-sectional vs. time series data, and structured vs. unstructured data. Numerical vs Categorical Data Numerical data, or quantitative data, can be counted or …
Annuities
Annuities Explained: Types and Examples | CFA Level I In this lesson, we’ll explore annuities, an application of the time value of money concept for a series of cash flows. We’ll learn about ordinary annuities, annuity dues, and perpetuities. Let’s dive in! What is an Annuity? An annuity is a finite set of level sequential cash flows. It has three …
Series of Cash Flows
Series of Cash Flows | CFA Level I Today, we’re going to explore time value of money problems with multiple cash flows. We’ll cover cases with regular and uneven cash flows, using time value of money functions on your calculator. Regular Cash Flows: Methods to Compute Future Value So far, we’ve focused on single cash flow time value problems. But …
Present Value of a Single Cashflow
Present Value of a Single Cash Flow | CFA Level 1 Previously, we covered the future value of a single cash flow. Now, it’s time to switch gears and dive into the present value (PV) of a single cash flow. We’ll also examine how various compounding frequencies impact our calculations. Buckle up and let’s get started! Cracking the Present Value …
Future Value and Compounding
Future Value and Compounding | CFA Level I In today’s lesson, we’ll cover the time value associated with a single cash flow or lump sum investment. We’ll learn how to calculate the future value of a single cash flow, understand the concept of effective annual rate, and explore compounding, including continuous compounding. Understanding Interest, Compounding, and Future Value When you …
Interest Rates and Time Value of Money
Interest Rates and Time Value of Money – CFA Level I Welcome to the first lesson of the CFA Level 1 Quantitative Methods course. We’ll start with the time value of money, a crucial concept in finance. If you’re already a pro, feel free to jump to the next lesson. In this lesson, we’ll define interest rate and explore two …
Linear Regression
Mastering Linear Regression for CFA Level 1: A Comprehensive Guide Linear Regression is a crucial topic for the CFA Level 1 exam, and it’s time to step up your game! In this article, we’ll walk you through the key lessons on Linear Regression, equipping you with the knowledge you need to succeed. So, buckle up and let’s get started! Simple …
Hypothesis Testing
Unlocking the Secrets of Hypothesis Testing for CFA Level 1 Are you ready to test the limits of your knowledge with Hypothesis Testing? In this article, we’ll take you through the essential lessons you need to know for the CFA Level 1 exam. Get ready to become a master of statistical decision-making! Hypothesis Testing Procedure Embark on a thrilling journey …
Estimation and Inference
Mastering Sampling and Estimation for CFA Level 1 Ready to conquer the world of sampling and estimation? In this article, we’ll cover the essential concepts you need to know for the CFA Level 1 exam. So, grab your statistical tools, and let’s get sampling! Sampling and Central Limit Theorem Discover the world of sampling methods and the central limit theorem, …
Portfolio Mathematics
Understanding Common Probability Distributions for CFA Level 1 Welcome to the exciting world of common probability distributions! In this article, we’ll provide a detailed overview of the concepts you need to know for the CFA Level 1 exam. So, let’s jump in and start distributing! Portfolio Return and Variance, Covariance and Correlation Hop aboard the roller coaster of portfolio return …
