Standard deviation and variance of expected returns (for the @CFA Level 1 exam)

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  • Опубликовано: 18 окт 2024

Комментарии • 14

  • @olavobrasil1
    @olavobrasil1 10 месяцев назад +2

    Your videos are really great and are helping me get through the CFA lvl1 books. How much % of the exam would you say that your videos cover?

    • @letmeexplaincfa
      @letmeexplaincfa  9 месяцев назад +1

      Thank you very much. I think the content covers something like 5 - 8% of the Level 1 content but I have big plans to expand this channel in 2024👍

  • @adialowaifeer1593
    @adialowaifeer1593 8 месяцев назад +1

    Thank you for the informative video. I've tried the (DATA) function in the calculator, entering returns as X values and probabilities as Y, then computing variance and standard deviation using the (STAT) function. Would I get away with this shortcut every time, or am I missing something?

    • @letmeexplaincfa
      @letmeexplaincfa  8 месяцев назад

      Brilliant, absolutely go with this shortcut and use it! It should be ok, as long as you enter the relevant inputs the right number of times :)

  • @owenselby3108
    @owenselby3108 7 месяцев назад +1

    very helpful thanks

  • @meruertzhussupkaliyeva2230
    @meruertzhussupkaliyeva2230 10 месяцев назад +1

    How did you get that E(RA) is 0.49% and E(RB) is 2.37%?

    • @letmeexplaincfa
      @letmeexplaincfa  10 месяцев назад

      They come from the previous video in the Quantitative Methods playlist. Here's the link: ruclips.net/video/fLHwDy_pUM8/видео.htmlsi=6PGLMhLpkH5LFyBr

  • @typicalgamer5560
    @typicalgamer5560 8 месяцев назад

    Is there a faster way to solve this with a ba 2 plus calculator?

    • @typicalgamer5560
      @typicalgamer5560 8 месяцев назад

      Also, for the variance doesnt the formula include n-1 in the denominator?

    • @letmeexplaincfa
      @letmeexplaincfa  8 месяцев назад +1

      Yes, but you would need to input each of the variable combinations as observations the right number of times, corresponding to their probability of occurence, e.g. 40% would require you to make the input 4 times out of 10.

    • @letmeexplaincfa
      @letmeexplaincfa  8 месяцев назад +1

      Because you are not dealing with observations here but probabilities, there is no n or n-1

    • @typicalgamer5560
      @typicalgamer5560 8 месяцев назад

      @@letmeexplaincfa Firstly, thank you very much for the reply, but when I do it this way my answer is b for some reason, yet I am doing it exactly as you said, and my mean or in this case Ex R is the same as yours

    • @letmeexplaincfa
      @letmeexplaincfa  7 месяцев назад

      @@typicalgamer5560 ok, but the answer to the question is indeed B :)