2024 CFA© Program Curriculum - Level Prerequisite Reading - Volume 1 - Quantitative Methods

✍ Scribed by CFA Institute

• Publisher: CFA Institute
• Year: 2024
• Tongue: English
• Leaves: 340
• Edition: 2024
• Category: Library

✦ Table of Contents

How to Use the CFA Program Curriculum
Errata
Quantitative Methods
Learning Module 1 Interest Rates, Present Value, and Future Value
Introduction
Interest Rates
Future Value of a Single Cash Flow
Non-Annual Compounding (Future Value)
Continuous Compounding
Stated and Effective Rates
Future Value of a Series of Cash Flows
Equal Cash Flows—Ordinary Annuity
Unequal Cash Flows
Present Value of a Single Cash Flow
Non-Annual Compounding (Present Value)
Present Value of a Series of Equal and Unequal Cash Flows
The Present Value of a Series of Equal Cash Flows
The Present Value of a Series of Unequal Cash Flows
Present Value of a Perpetuity
Present Values Indexed at Times Other than t = 0
Solving for Interest Rates, Growth Rates, and Number of Periods
Solving for Interest Rates and Growth Rates
Solving for the Number of Periods
Solving for Size of Annuity Payments
Present and Future Value Equivalence and the Additivity Principle
The Cash Flow Additivity Principle
Summary
Practice Problems
Solutions
Learning Module 2 Organizing, Visualizing, and Describing Data
Introduction
Data Types
Numerical versus Categorical Data
Cross-Sectional versus Time-Series versus Panel Data
Structured versus Unstructured Data
Data Summarization
Organizing Data for Quantitative Analysis
Summarizing Data Using Frequency Distributions
Summarizing Data Using a Contingency Table
Data Visualization
Histogram and Frequency Polygon
Bar Chart
Tree-Map
Word Cloud
Line Chart
Scatter Plot
Heat Map
Guide to Selecting among Visualization Types
Measures of Central Tendency
The Arithmetic Mean
The Median
The Mode
Other Concepts of Mean
Quantiles
Quartiles, Quintiles, Deciles, and Percentiles
Quantiles in Investment Practice
Measures of Dispersion
The Range
The Mean Absolute Deviation
Sample Variance and Sample Standard Deviation
Downside Deviation and Coefficient of Variation
Coefficient of Variation
Summary
Practice Problems
Solutions
Learning Module 3 Probability Concepts
Probability Concepts and Odds Ratios
Probability and Odds
Conditional and Joint Probability
Principles of Counting
Summary
References
Practice Problems
Solutions
Learning Module 4 Common Probability Distributions
Discrete Random Variables
Discrete Random Variables
Discrete and Continuous Uniform Distribution
Continuous Uniform Distribution
Binomial Distribution
Normal Distribution
The Normal Distribution
Probabilities Using the Normal Distribution
Standardizing a Random Variable
Probabilities Using the Standard Normal Distribution
Student’s t-, Chi-Square, and F-Distributions
Student’s t-Distribution
Chi-Square and F-Distribution
Summary
References
Practice Problems
Solutions
Learning Module 5 Sampling and Estimation
Introduction
Point Estimates of the Population Mean
Point Estimators
Confidence Intervals for the Population Mean and Sample Size Selection
Selection of Sample Size
Sampling-Related Biases
Data Snooping Bias
Sample Selection Bias
Look-Ahead Bias
Time-Period Bias
Summary
References
Practice Problems
Solutions
Learning Module 6 Basics of Hypothesis Testing
Introduction
Why Hypothesis Testing?
Implications from a Sampling Distribution
The Process of Hypothesis Testing
Stating the Hypotheses
Two-Sided vs. One-Sided Hypotheses
Selecting the Appropriate Hypotheses
Identify the Appropriate Test Statistic
Test Statistics
Identifying the Distribution of the Test Statistic
Specify the Level of Significance
State the Decision Rule
Determining Critical Values
Decision Rules and Confidence Intervals
Collect the Data and Calculate the Test Statistic
Make a Decision
Make a Statistical Decision
Make an Economic Decision
Statistically Significant but Not Economically Significant?
The Role of p-Values
Multiple Tests and Significance Interpretation
Tests Concerning a Single Mean
Test Concerning Differences between Means with Independent Samples
Test Concerning Differences between Means with Dependent Samples
Testing Concerning Tests of Variances
Tests of a Single Variance
Test Concerning the Equality of Two Variances (F-Test)
Summary
References
Practice Problems
Solutions
Learning Module 7 Appendices
Appendices
Glossary