FOR ALL PREPARING FOR LEVEL 1, THIS IS A OLD POST I POSTED DURING MY PREP FOR LEVEL 1. THE PAGES AND DATA FOR THE EXAMPLES I USED M** IGHT HAVE CHANGED BUT THE MECHANICS OF USING THE CALCULATOR TO PERFORM THE CALCULATIONS ARE THE SAME. GL EVERYONE.**
THANKS FOR EVERYONES FEEEDBACK!!! I think i found an easier way
QUANT For those who have Schweser Notes - Turn to page 204. This is the example I am using here.
PROB
10% EPS 1.80 20% EPS 1.60 40% EPS 1.20 30% EPS 1.00
Now start inputting the data. To do this press 2nd (data)
Then 2nd Clear Work to be safe -clear out data
With me so far: Now were ready - -This is sooo easy!!
X01: 1.80 Press Enter Y01: 10% (put it in % not decimal for all of them) Press Enter X02: 1.60 Enter Y02: 20% Enter…and so forth press enter for all of them X03: 1.20 Y03: 40% X04: 1.00 Y04: 30%
Now first step to do is change the stat to 1V ( I think its in “LIN” by default), which is 1 Variable —-> Button 2nd (stat) (stat is number 8) then 2nd (set) (which is the enter button)
Keep pressing 2nd set until you see 1-V…Once you see 1-V, start pressing the arrows (up and down) to get the results.
In this case, press arrow down. Pressing down twice will give you the (E)r, which on the calculator is XBAR : Nice $1.28 !!!
4th arrow down is the population std deviation (SIGMA x ) on the calculator : .27129 (Pg 205 Schweser)
Square that and you get your VARIANCE!!!
I’m not sure how to do the Prob Method for 2 Variables but I do know how to do it using the historical data method (Used in Portfolio Mgmt)
Same Concept but now you have to change the 1-V to LIN
Enter Data for Stock A as X and Stock B for Y
2nd Stat —> LIN start pressing the arrows
It calculates the population and sample mean for , sample std deviation (Sx), Population Std Dev (Sigma x) for stock A&B and the correlation coefficient (which is “r”) on the calculator. For historical data, remember its n-1, so use the sample std deviations for A&B
Square the std deviations and you get the Variances and obviously if you have both Std Deviations and the Correlation Coefficient, Guess what? You can get easily get the Covariance…I’ll leave that for you to figure out!! 
Now if someone can figure out a way to get this information for 2 Variables using Probabilities, PLEASE POST IT ASAP!! Thanks and good luck EVERYONE!!
PORTFOLIO MGMT: Try using historical data in Portfolio Mgmt Pg 117-118 -Schweser. Enter the returns for both stocks in decimal, in other words, they way they have it listed.
Remember switch 2nd stat to LIN for 2 variables
You will get the Std Deviations (Calculator Sx for Stock A and Sy for Stock B), and r is the correlation coefficient. Covariance you have to calculate. IT WORKS!!
2nd Data 2nd Clr Work
2004 : X01:+.10 enter Y01: +.20 enter
and so forth…once your done entering data
2nd stat 2nd set until you see LIN and press arrow done until you see the info you need!