To view full questions and answers, please kindly visit our site: http://cfaexampreparation.com/32-free-cfa-level-1-mock-exam-questions/
When one event's probability affects the other events*P(A|B) = The probability of A given B
The mean of n numbers expressed as the reciprocal of the arithmetic mean of the reciprocals of the numbers
Holding Period Return = (ending value/beginning value) - 1 OR= (ending
value - beginning value + cash flow received)/(beginning value) - 1
The percentage of the observations that lie within k standard deviations of the mean is at least 1 - (1/k^2) when k > 1
= (risk free rate) + (default risk premium) + (liquidity premium) + (maturity risk premium)
Same as IRR
Events are independent if P(A|B) = P(A)
P(A and B) = P(A) * P(B) if independent events
Formula to find the number of possible ways of selecting r items from a set of n items;C = (n!) {(n - r)! * r!}
Dividing the covariance between returns of two assets by the individual standard deviations of returns of the two assets
= (1 + HPR) ^ (365/days until maturity) - 1
Used to update a given set of prior probabilities for a given event in
response to new information;(Updated Probability) = {(Probability of
new information of a given event) (Unconditional probability of new
information)} * (Probability of event)
Comes from a personal judgement
Comes from a formal reasoning and inspection process; an objective probability
No comments:
Post a Comment