# Topic 2: Introduction to Alternative Investments

## CAIA Level 1 March 2020

Any dates?

## Lvl 1_Option pricing model_query re important things for exam

I´m currently reading the option pricing models (ie, Black-Sholes formula, Black forward option model, etc…) I understand that the formula is given in the exam. However, I´m confused how extensive do I need to know this topic? Do I need to remember the individual variables representing the formula?

## Return on national principal equations

Hi guys

Could you please help me with Return on notional principal for both fully collateralized and partially collateralized , I don’t know how to implement it on the calculator

I stuck in LN function , how can I put it into the BA I calculator

the formulas are

Fully = LN(1+R) + Rf

Partially = [ L * LN ( 1+R)] + Rf

thanks for your help and time

## Different formulas for Information Ratio

Hello,

I have noticed that there are two formulas for the Information Ratio.

The 1st from topic 2.5 = (E(Rp) - Rbenchmark) / Tracking Error Porfolio

The 2nd from topic 4.5 = Information Coefficient * Breath^(1/2)++

Are this formula equivalent? Do they calculate the same value if we are given the correct inputs?

Thanks for your help

## What are "lagged values" from autocorrelation topic

What are “lagged values” from autocorrelation topic? What is the difference from “normal values”?

## Why Risk Free rate of alpha is zero?

Does anybody knows why when calculating in excel a linear regression excel uses a Risk Free rate of zero?

## Spearman Rank L1

Hello,

## Statistics on CAIA

Hello,

## Study Group Level 1 CAIA March 2014

I would like to create a group for next CAIA L1 March 2014 in Geneva (Switzerland). Once a week or twice a week. Let me know if anyone is interested in forming a group.

## Junior Equity Analyst

I studied Hospitality management. (huge mistake) I was a FA for 2 years and the sales aspect of the job was not for me I am not a salesman, Although I did learn a lot in these 2 years of working, I am currently studying CAIA level 1 I plan to pass in March and do level 2 by september. I know this is going to be a crazy year of studying but I need to do it.

I am keen to move into an AI analyst position, I am doing excel modelling as a hobby, because it does seem that all job requirements, require this skill.

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