F Flashcards
calculate and interpret quartiles, quintiles, deciles, and percentiles; "an approach to describing the location of data that involves identifying values at or below which specified proportions of the data lie in order to provide "provides concise information about the distribution of portfolio returns"
1
Q
Quantile
A
A fraction of data at or below the data
“Quantiles are used in portfolio performance evaluation as well as in investment strategy development and research. To rank performance - portfolio performance evaluation
Investment Research: “allows analysts to evaluate the impact of that characteristic on a quantity of interest.”
2
Q
Most Commonly Used Quan’tile’ (‘tiles’ divide data into equal sized fractions or groups)
A
Quartiles: 4, quintiles: 5, deciles: 10, percentiles: 100
“Given a set of observations, the yth percentile is the value at or below which y percent of observations lie”
Ex: 2nd quartiles, 50% observations lie below 2nd quartile
3
Q
Calculate a quantile
A
“the calculation of various quantiles for the dividend yield”
