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 and risk, as you dive into variance, covariance, and correlation! Fasten your seatbelts and learn how to analyze and manage investment portfolios like a pro.

► Ride the wild world of portfolio management here.

PRE: Discrete Random Variables

Unearth the secrets of discrete random variables and conquer uniform and binomial distributions! Apply these powerful concepts to tracking errors and stock price movements, and watch your expertise grow.

► Unlock the mastery of discrete distributions here.

PRE: Continuous Random Variables

Welcome aboard the continuous random variable express! In this lesson, we’ll chug along continuous uniform, normal, and lognormal distributions. We’ll also make stops at confidence intervals, the z-table, and Roy’s safety-first ratio. Prepare to be amazed as we turn probability and stats into a fun adventure!

Ready for the next stop on this thrilling journey? Hop on here.