# 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!

## 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.

## 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.

## Monte Carlo Simulation

Monte Carlo simulation, a computer-based technique, awaits you in this lesson! Discover how it’s used to evaluate price movements of stock options, along with its various applications in finance. But watch out for its limitations and learn about an alternative, historical simulation.

Feeling lucky? Roll the dice here.