CFA: Probability
Quiz yourself by thinking what should be in
each of the black spaces below before clicking
on it to display the answer.
Help!
|
|
||||
---|---|---|---|---|---|
Addition rule for prob of A or B occurring | P(A or B) = P(A) + P(B) – P(AB)
🗑
|
||||
Use multiplication rule for joint probability | Prob(AB) = Prob(A|B) × Prob(B)
🗑
|
||||
Multiplication rule for independent probabilities | Prob(AB) = Prob (A) × Prob(B)
🗑
|
||||
Probability That at Least One of Two Events Will Occur | P(A or B) = P(A) + P(B) – P(AB)
🗑
|
||||
Corr(Ri,Rj) | Cov(Ri,Rj) / std(Ri) * std(Rj)
🗑
|
||||
Expected Value | E(X) = SUM[P(xi)xi]
🗑
|
||||
Variance | SUM[P(xi)[xi – E(X)]^2]
🗑
|
||||
Standard deviation | Square root of variance
🗑
|
||||
Portfolio Variance Var(Rp) | std^2.a * w^2.a + std^2.b * w^2.b + 2w.a * w.b * Cov.ab --> where Cov.ab = rho.ab * std.a * std.b
🗑
|
||||
Joint Probability Function | find out more...
🗑
|
||||
Bayes’ Formula | find out more...
🗑
|
||||
Choosing r Objects from n Objects (when order doesn't matter and only 2 possible labels) | nCr = n! / [ (n-r)! r!]
🗑
|
||||
Choosing r Objects From n Objects (when order does matter) | nPr = n! / (n-r)!
🗑
|
||||
Binomial Random Variable | p(x) = [ n!/ (n-x)! x! ] p^x (1-p)^ n-x
🗑
|
||||
probability function | p(x) = x / 15 for X = {1,2,3,4,5} p(3) = 20%
🗑
|
Review the information in the table. When you are ready to quiz yourself you can hide individual columns or the entire table. Then you can click on the empty cells to reveal the answer. Try to recall what will be displayed before clicking the empty cell.
To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Created by:
thongkk
Popular Finance sets