Find Flashcards
Make Flashcards
Why It Works
More
Educators
Businesses
Academy
About

Log In
Get Started

Brainscape's Knowledge Genome^TM

Browse over 1 million classes created by top students, professors, publishers, and experts.

Entrance Exams
Professional Certifications
Foreign Languages
Medical & Nursing
Science
English
Humanities & Social Studies
Mathematics
Law
Vocations
Health & Fitness
Business & Finance
Technology & Engineering
Food & Beverage
Fine Arts
Random Knowledge

See full index

L1 09 Common Probability Distributions > h calculate and interpret tracking error; > Flashcards

h calculate and interpret tracking error; Flashcards

Study These Flashcards

L1 09 Common Probability Distributions (20 decks)

Common Probability Distributions

9 A Probability Dist. Cont V. Discreet Random Variable + Prob Functions

a define a probability distribution and distinguish between discrete and continuous random variables and their probability functions;

b describe the set of possible outcomes of a specified discrete random variable;

c interpret a cumulative distribution function;

d calculate and interpret probabilities for a random variable, given its cumulative distribution function;

e define a discrete uniform random variable, a Bernoulli random variable, and a binomial random variable;

f calculate and interpret probabilities given the discrete uniform and the binomial distribution functions;

g construct a binomial tree to describe stock price movement;

h calculate and interpret tracking error;

i define the continuous uniform distribution and calculate and interpret probabilities, given a continuous uniform distribution;

j explain the key properties of the normal distribution;

k distinguish between a univariate and a multivariate distribution, and explain the role of correlation in the multivariate normal distribution;

l determine the probability that a normally distributed random variable lies inside a given interval;

m define the standard normal distribution, explain how to standardize a random variable, and calculate and interpret probabilities using the standard normal distribution;

n define shortfall risk, calculate the safety-first ratio, and select an optimal portfolio using Roy’s safety-first criterion;

o explain the relationship between normal and lognormal distributions and why the lognormal distribution is used to model asset prices;

p distinguish between discretely and continuously compounded rates of return, and calculate and interpret a continuously compounded rate of return, given a specific holding period return;

q explain Monte Carlo simulation and describe its major applications and limitations;

r compare Monte Carlo simulation and historical simulation.

Key Links
Subjects
Company
- About Us
- Earn Money!
- Academy
- Swag Shop
- Contact
- Terms
- Podcasts
- Careers
Find Us

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions