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Study Session 2: Quantitative Methods: Basic Concepts

Time Line

Hi Folks,

Hoping to clarify an issue that is confusing me. If grandparents are saving for a newborn’s college tuition in 18 yrs (question 23 of TVM), why is n=17?

Thanks fr the help.


I lost all my quant notes

Im just here to say something that made me so mad, I accidently saved yesterday the fixed income cfa pdf (lv.5) in quant stead (lv.1) and it save upon my quant pdf.

I lost all my notes highlights I made in my quant pdf that took alot to make, I also lost all exercises, calc tips that I took in that pdf, I`m so MAD :(

Chebyshev’s inequality

I am having problems understanding two questions from the CFA book, could anyone help me to understand?

Q: Over the past 240 months, an investor’s portfolio had a mean monthly return
of 0.79%, with a standard deviation of monthly returns of 1.16%. According to
Chebyshev’s inequality, the minimum number of the 240 monthly returns that
fall into the range of −0.95% to 2.53% is closest to:
A 80.
B 107.
C 133.


Annuity Calculation

Ms Ling purchases an automobile using loan of $ 44000.00 for 7 yrs with monthly payments. The annual nominal interest rate is 12 % with monthly compounding. What would be the monthly payment.

What is I/Y here?

As effective rate is not given, should we convert it to effective and then use that I/Y for calculation?


Question-Time value of Money


Can anyone please help to explain this question? I am having a trouble with these kinds of problems.

Total Probability Rule/Bayes Formula

Just wondering if I am the only one that is really struggling with questions relating to the Total Probability rule? I’m solid with everything else in Quants and the Probability Concepts reading but for whatever reason, questions relating to this I just can’t grasp. Any recommendations or am I the only one that this is not clicking for?


MAD and Variance Formulas

Is the MAD and Variance formulas the same, except that in variance you elevate to square?

Notes in studies

In general do you guys usually take notes when studying?

Or just read and answer questions?

In the beginning when I started studying I was taking notes, but figured out would probably get massive and I would probably not even review the notes I was taking so I stopped doing it, I`m sticking with reading and answering the questions, and I usually take notes of the resolution of the question…