What you'll learn

Cover all learning outcome statements (LOS) in the CFA Level 1 Quantitative Methods study session

Interpret interest rates and explain their composition

Calculate ways to measure returns and their uses

Money weighted and time weighted returns

Annualized returns and continuously compounded returns

Calculate ways to measure returns and their uses

Present value of fixed income and equity instruments

Implied return of fixed income and equity instruments

Adding cash flows and preventing arbitrage with interest rates and exchange rates

Measures of central tendency and location

Measures of dispersion

Measures of skewness and kurtosis

Interpreting correlation

Expected values, variances, and standard deviations

Probability trees and conditional probabilities

Baye's formula (Baye's Theorem)

Portfolio expected value, variance, standard deviation, covariance and correlation

Portfolio covariance and correlation using probabilities

Shortfall risk and the safety first ratio

Lognormal distributions and continuously compounded returns

Monte Carlo simulation

Bootstrap resampling

Types of sampling and their implications

Central limit theorem

Resampling methods

Hypothesis testing and errors

Constructing hypothesis tests

Parametric and non parametric tests

Parametric tests, non parametric tests, and correlation tests

Contingency tables and tests of independence

Introduction to linear regression, criteria, and coefficients

Linear regression assumptions

Measures and tests of fit

Using an ANOVA table and interpreting the standard error

Calculating the predicted value of a dependent variable and an interval for it

Functional forms of simple linear regressions

Fintech and financial data

Big data, artificial intelligence, machine learning

Big data and data science applications

Requirements

CFA Institute approved calculator, such as TI BA II Plus