CFA Level 1 Prep- Quantitative Methods

Exam Weight 12% | Taught by Amit Parakh, CFA

This section includes the fundamentals of some quantitative techniques essential in financial analysis. These techniques are used throughout the CFA Program curriculum.

Time value of money techniques are used throughout financial analysis. Time value of money calculations are the basic tools used to support corporate finance decisions and to estimate the fair value of fixed income, equity, and other types of securities or investments.Descriptive statistics provide essential tools for describing and evaluating return and risk. Probability theory concepts are needed to understand investment decision-making under conditions of uncertainty.

The section also introduces some of the discrete and continuous probability distributions most commonly used to describe the behavior of random variables. Probability theory and calculations are widely used in finance, for example, in the field of investment and project valuation and in financial risk management.

Furthermore, the section explains how to estimate different parameters (e.g., mean and standard deviation) of a population if only a sample, rather than the whole population, can be observed. Hypothesis testing is a closely related topic. It presents techniques that are used to accept or reject an assumed hypothesis (null hypothesis) about various parameters of a population.

The final reading introduces the fundamentals of technical analysis and illustrates how it is used to analyze securities and securities markets.

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    Self paced
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    enrollments9
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    LanguagesEnglish
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    Published DateJul 18, 2018
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    Documents: 3
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    Video: 25
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    Test: 9

Course Highlights

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    Understand the fundamentals of quantitative techniques
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    Know all about time value of money techniques
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    Learn about discrete and continuous probability distributions
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    Learn how to estimate different parameters of a population
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    Understand the fundamentals of technical analysis

Schedule

Section 1 - Lecture Slides
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    Level1_QM1
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    Level1_QM2
Section 2 - Reading 6: The Time Value of Money
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    Interest Rate, Future Value, Present Value Part 1
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    Interest Rate, Future Value, Present Value Part 2
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    Reading 6 Quiz 1
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    Stated Annual Interest Rate, EAR, TVM Problems- 1
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    Stated Annual Interest Rate, EAR, TVM Problems-2
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    Reading 6 Quiz 2
Section 3 - Reading 7: Discounted Cash Flow Applications
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    Comparison of NPV and IRR
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    Reading 7 Quiz 1
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    Portfolio Return Measurements
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    Reading 7 Quiz 2
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    Money Market Yields
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    Reading 7 Quiz 3
Section 4 - Reading 8: Statistical Concepts and Market Returns
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    Fundamental Concepts
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    Reading 8 Quiz 1
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    Central Tendency and Dispersion-1
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    Central Tendency and Dispersion-2
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    Symmetry, Skewness & Kurtosis, AV Vs. GM
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    Reading 8 Quiz 2
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    Reading 8 Quiz 3
Section 5 - Reading 9: Probability Concepts
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    Probability, Expected Value and Variance -1
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    Probability, Expected Value and Variance-2
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    Probability, Expected Value and Variance -3
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    Reading 9 Quiz 1
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    Covariance, Correlation,Portfolio return and Variance
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    Bayes' Formula and Counting Rules
Section 6 - Reading 10: Common Probability Distributions
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    Discrete Distribution
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    Continuous Distribution-1
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    Continuous Distribution -2
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    Monte Carlo Simulation
Section 7 - Reading 11: Sampling and Estimation
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    Sampling
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    Estimation
Section 8 - Reading 12: Hypothesis Testing
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    Introduction to Hypothesis Testing
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    Hypothesis Tests Concerning the Mean
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    Hypothesis Tests Concerning the Variance
Section 9 - Reading 13: Technical Analysis
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    Notes on Technical Analysis

Instructor

Amit ParakhIndiaContact Instructor

Amit Parakh is one of the most qualified global trainers in the CFA Program and FRM space. He has a B-Com from Calcutta University and an MBA from IIMA. Having aced Chartered Accountancy (a national rank), FRM, CS, CFA exams all in first attempt, he knows what it takes. Amit has been with ICICI Bank in the structured finance division. He has also been a sell side equity analyst with JP Morgan. He carries an extensive experience of teaching specialized courses in derivative and fixed income.