CFA Level 1 - 101 Must Knows 368 Questions with Verified Answers,100% CORRECT
102 vues 1 fois vendu
Cours
CFA Level 1
Établissement
CFA Level 1
CFA Level 1 - 101 Must Knows 368 Questions with Verified Answers
Addition Rule of Probability - CORRECT ANSWER ADDITION: P(A or B) = P(A) + P(B) - P(AB)
Roy's Safety First Criterion - CORRECT ANSWER Safety First Ratio = (E(R) - Rₜ) / σ
Larger ratio is better
If (Rₜ) is risk free ra...
CFA Level 1 - 101 Must Knows 368 Questions with Verified Answers
Addition Rule of Probability - CORRECT ANSWER ADDITION: P(A or B) = P(A) + P(B)
- P(AB)
Roy's Safety First Criterion - CORRECT ANSWER Safety First Ratio = (E(R) - R ₜ) / σ
Larger ratio is better
If (Rₜ) is risk free rate, then it becomes Sharpe Ratio
Sharpe Ratio - CORRECT ANSWER Sharpe Ratio = (E(R) - RFR) / σ
Larger ratio is better
If (Rt) is higher than RFR, then it becomes Safety First Ratio
Central Limit Theorem - CORRECT ANSWER If we take samples of a population, with a large enough sample size, the distribution of all sample means is normal with:
- A mean equal to the population mean
- A variance equal to the population variance divided by sample size (σ² / n)
Standard Error of Sample Mean - CORRECT ANSWER σ / n^½
Binomial Probability - CORRECT ANSWER One of two possible outcomes (i.e. success/failure)
Possible outcomes can be demonstrated in binomial tree
Use "nCr" on calculator to solve:
nCr = P(success)^x * P(failure)^(n-x) P - Value - CORRECT ANSWER Based on a calculated test statistic, rather than a significance level (which is chosen)
p-value = smallest significance level at which an analyst can reject the null hypothesis
one-tailed test - "less than or equal to"
two-tailed test - "equal to"
Cumulative Distribution Function - CORRECT ANSWER Gives the probability that a random variable will have an outcome less than or equal to a specific value (represented by F(x))
F(x) = probability of an outcome less than or equal to x
Standard normal table (z) shows cumulative probabilities
Effective Annual Yield - CORRECT ANSWER EAY = (1 + (i/n))^n - 1
Stated Rate = (EAY^(1/n) - 1) * n
Continuous Compounding - CORRECT ANSWER ln(EAY) = continuously compounded stated rate
e^(continuously compounded stated rate) = EAY
Type I Error - CORRECT ANSWER Incorrectly rejecting a true null hypothesis
(convicting an innocent person is Type I)
Type II Error - CORRECT ANSWER Failure to reject a false null hypothesis
(failure to convict a guilty person is Type II)
Significance Level / Power of a Test - CORRECT ANSWER Significance Level = Probability of Type I Power of a Test = (1 - Probability of Type I)
Covariance (Probability Model) - CORRECT ANSWER Covariance of random variables A and B from probability model
On the calculator:
1) Enter returns for set A and joint probabilities for AB; find mean A
2) Enter returns for set B and joint probabilities for AB; find mean B
3) Multiply each joint probability AB by each set's returns minus means
(ex: P(AB1)(A1 - Mean A)(B1 - Mean B) + P(AB2)(A2 - Mean A)(B2 - Mean B) + ... + P(ABn)(An - Mean A)(Bn - Mean B))
4) The summed total is your covariance
Covariance (Sample) - CORRECT ANSWER Covariance of random variables A and B from sample with historical data with n observations
Correlation Coefficient - CORRECT ANSWER COVab / σaσb
Bank Discount Yield (Discount basis) - CORRECT ANSWER (Discount / Face Value) *
(360 / Days)
Money Market Yield - CORRECT ANSWER (HPY) * (360 / Days)
Bond Equivalent Yield - CORRECT ANSWER (HPY) * (365 / Days)
Most appropriate for comparing yields!
Technical Analysis Indicators - CORRECT ANSWER Continuation:
TRIANGLE (or pennant) = Suggests a pause in the stock price movement that will be followed by a continuation of the previous trend
Reversal:
HEAD AND SHOULDERS = Suggests a future decline in the stock price regardless of
prior trend
DOUBLE BOTTOM = Increasing stock price in the future (reversal of a downtrend) Trendlines:
SUPPORT / RESISTANCE = Range that stock price trades in based on supply/demand. Stock is "supported" from going below a certain low price, and "resists" going above a certain high price
Price Elasticity - CORRECT ANSWER %ΔQuantity / %ΔPrice = (ΔQ / ΔP) * (P ₀ / Q₀)
Demand is elastic if less than -1
Demand is inelastic if 0 to -1
Income Elasticity - CORRECT ANSWER %ΔQuantity / %ΔIncome
Positive for normal good
Negative for inferior good
Cross-Price Elasticity - CORRECT ANSWER %ΔQuantity / %ΔPriceʳᵉˡᵃᵗᵉᵈ ᵍᵒᵒᵈ
Positive for substitutes
Negative for complements
Sources of Economic Growth - CORRECT ANSWER Increases in:
- Labor
- Physical Capital
- Technology
- Natural Resources
- Human Capital
(LPT:HN)
"Life Pro Tip: No Hangovers"
Production Function Approach (GDP) - CORRECT ANSWER Potential GDP = A * f(L,K)
L = Labor
K = Capital
A = "total factor productivity" aka increased growth not explained by growth of labor and capital
Les avantages d'acheter des résumés chez Stuvia:
Qualité garantie par les avis des clients
Les clients de Stuvia ont évalués plus de 700 000 résumés. C'est comme ça que vous savez que vous achetez les meilleurs documents.
L’achat facile et rapide
Vous pouvez payer rapidement avec iDeal, carte de crédit ou Stuvia-crédit pour les résumés. Il n'y a pas d'adhésion nécessaire.
Focus sur l’essentiel
Vos camarades écrivent eux-mêmes les notes d’étude, c’est pourquoi les documents sont toujours fiables et à jour. Cela garantit que vous arrivez rapidement au coeur du matériel.
Foire aux questions
Qu'est-ce que j'obtiens en achetant ce document ?
Vous obtenez un PDF, disponible immédiatement après votre achat. Le document acheté est accessible à tout moment, n'importe où et indéfiniment via votre profil.
Garantie de remboursement : comment ça marche ?
Notre garantie de satisfaction garantit que vous trouverez toujours un document d'étude qui vous convient. Vous remplissez un formulaire et notre équipe du service client s'occupe du reste.
Auprès de qui est-ce que j'achète ce résumé ?
Stuvia est une place de marché. Alors, vous n'achetez donc pas ce document chez nous, mais auprès du vendeur paulhans. Stuvia facilite les paiements au vendeur.
Est-ce que j'aurai un abonnement?
Non, vous n'achetez ce résumé que pour €10,65. Vous n'êtes lié à rien après votre achat.
