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This course covers quantitative analysis on the CFA exam. We’ll cover time value of money which is the bedrock of valuation in finance and a key part of the CFA exam.  We’ll also go through project selection calculations and the basic statistics exam takers need to know in order to pass. Since, the investments field features significant amounts of uncertainty in investing, we’ll cover probability theory which helps with analyzing that risk as well as probability distributions which help investors to think through risk in investments. We’ll also go over understanding sampling and estimation, and how that can make you a better investor, as well as the uses of hypothesis testing The CFA exam includes questions on technical analysis, so we’ll cover that too. And finally, to pass the CFA exam, you need to have good test taking strategies, so we will go through some things to keep in mind when you are getting ready to sit for the exam.

Learning Objectives

  • Identify and solve time value of money problems for different frequencies of compounding.
  • Discover and interpret the net present value (NPV) and the internal rate of return (IRR) of an investment.
  • Explore measures of central tendency, including the population mean, sample mean, arithmetic mean, weighted average or mean, geometric mean, harmonic mean, median, and mode.
  • Explore unconditional and conditional probabilities and explain the use of conditional expectation in investment applications.
  • Discover a probability distribution and distinguish between discrete and continuous random variables and their probability functions.
  • Discover the issues regarding selection of the appropriate sample size, data-mining bias, sample selection bias, survivorship bias, look-ahead bias, and time-period bias.
  • Identify a hypothesis, describe the steps of hypothesis testing, and describe and interpret the choice of the null and alternative hypotheses.
  • Explore principles of technical analysis, its applications, and its underlying assumptions.
  • Recognize test taking strategies for quantitative methods problems.
Last updated/reviewed: July 26, 2020

Included In Certifications

This course is included in the following Certification Programs:

11 CoursesCFA Level 1 Preparation

  1. CFA Level 1 Prep: Introduction to the CFA Exam
  2. CFA Level 1 Prep: 1 - Ethics and Professional Standards
  3. CFA Level 1 Prep: 2 - Quantitative Methods
  4. CFA Level 1 Prep: 3 - Economics
  5. CFA Level 1 Prep: 4 - Financial Reporting and Analysis
  6. CFA Level 1 Prep: 5 - Corporate Finance
  7. CFA Level 1 Prep: 6 - Equities Markets
  8. CFA Level 1 Prep: 7 - Fixed Income
  9. CFA Level 1 Prep: 8 - Derivatives
  10. CFA Level 1 Prep: 9 - Alternative Investments
  11. CFA Level 1 Prep: 10 - Portfolio Management

Prerequisites

Course Complexity: Foundational

No advanced preparation or prerequisites are required for this course. However being part of a series, you may consider taking all related courses in sequence: https://www.illumeo.com/curriculum/cfa-level-1-preparation

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
INTRODUCTION AND OVERVIEW
  1:35Time Value of Money and The CFA
  15:06Time Value Examples
  10:00Project Selection and The CFA
  9:14Investment Statistics and The CFA
  8:07Investment Statistics and The CFA Cont'd
  5:53Probability Theory and The CFA
  4:27Investments and Probabilities
  5:53Statistical Sampling
  5:30Investment Hypotheses
  3:52Technical Analysis
  2:16CFA Test Tips
CONTINUOUS PLAY
  1:11:53CFA Level 1 Prep: 2 - Quantitative Methods
SUPPORTING MATERIAL
  PDFSlides: CFA Level 1 Prep: 2 - Quantitative Methods
  PDFCFA Level 1 Prep: 2 - Quantitative Methods Glossary/ Index
REVIEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM