Brainscape's Knowledge GenomeTM

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


See full index

CFA L1 Study Plan Material > Quants > Flashcards

Quants Flashcards

You may prefer our related Brainscape-certified flashcards:
CFA flashcards
1
Q

Bank Discount Yield formula

A

= (D/F) * (360/T)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Geometric Mean formula

A

= (1+R1)(1+R2)(1+Rn…) [yx] n [1/x] - 1

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

P(AorB) formula

A

= P(A) + P(B) - P(AB)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

P(A/B) formula

A

= P(AB) / P(B)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

P(AB) formula - dependent events

A

= P(A/B) * P(B)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

P(AB) formula - independent events

A

= P(A) * P(B)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

“compound rate of return of the portfolio” aka…

A

geometric mean

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

“portfolio average return” aka…

A

geometric mean

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Bayes formula

A

Updated Probability of Event Given Info = (Prob of Info Given Event / Unconditional Prob of New Info) * Prior Prob of Event

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Money Weighted Return is sensitive to…

A

the additions and withdrawals of funds over the course of the investment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

HPR formula

A

= Ending-Beginning / Beginning

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

MWR formula

A

= IRR

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

empirical probability

A

probability estimated from data as a relative frequency of occurrence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

subjective probability

A

probability drawing on personal/subjective judgement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

priori probability

A

probability obtained based on logical analysis

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Bayes formula - P(Event/Info)

A

= P(Event/Info) = [ P(Info/Event) / P(Info) ] * P(Event)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

coefficient of variation (CV) formula

A

= sd / mean

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

permutation formula

A

nPr = n! / (n-r)!

order DOES matter

19
Q

the arithmetic sum of deviations around the mean will always…

A

equal zero

20
Q

the mean absolute deviation will always…

A

be less than or equal to the standard deviation

21
Q

Time Weighted Return TWR

A

= (1+HPR1)(1+HPR2)(1+HPRn…) - 1

22
Q

Effective Annual Rate (EAR) formula

A

= (1+periodic rate)^m - 1

periodic rate is stated annual rate divided by # of compounding periods (m)

23
Q

if the P-value is less than the specified level of significance…

A

the null hypothesis is rejected

24
Q

P-values are never…

A

negative

25
Q

t-test statistic formula

A

= (d-h) / (sd/square root of n)

where d= the mean difference, h= hypothesized difference of the means

26
Q

Z statistic formula

A

= (h-mu) / popSD

where h= hypothetical value. then use Z to find probability of a Z value. If negative, 1-P(Z)

27
Q

discrete random variable

A

a random variable that can take on at most a countable number of possible values. ex. number of days

28
Q

continuous random variable ex.

A

percentage changes, returns

29
Q

a statistically significant result might not be…

A

economically meaningful after accounting for risk, transaction costs, and taxes

30
Q

Central Limit Theorem

A

given a pop that has finite variance and large sample size, the distribution of the sample will be normal, will have a mean equal to the pop mean, and will have a variance equal to the pop variance

31
Q

central limit theorem holds without regard to…

A

the distribution of the underlying pop

32
Q

Standard Error of the Sample Mean formula

A

= sd/square root of n

33
Q

Confidence Interval for the Pop Mean formula

A

= X bar +/- t (sd/square root of n)

do not divide t by 2

34
Q

Type II Error

A

double negative. fail to reject the null

35
Q

Type 1 Error

A

reject a true null

36
Q

if the P-value exceeds the stated level of significance…

A

the null hypothesis cannot be rejected

37
Q

Resistance

A

a price range in which selling activity is sufficient to stop the rise in price

38
Q

Support

A

low price range in which buying activity is sufficient to top the decline in price

39
Q

change in polarity

A

refers to support, when breached, becomes resistance; resistance, when breached, becomes support

40
Q

as the degree of confidence is increased…

A

the confidence interval becomes wider. a larger sample size decreases the width of the confidence interval

41
Q

use Z-statistic when…

A

sample has normal distribution with known variance. does NOT use degrees of freedom

42
Q

nonparametric tests

A

primarily concerned with ranks, signs, or groups

43
Q

Bollinger Bands

A

price volatility

CFA L1 Study Plan Material (7 decks)

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