Bonus: review of regression & volatility estimation
For members, I prepared a 40-minute screencast review of three learning spreadsheets that are important to the quantitative analysis portion of the FRM:
- Gujarati’s simple (two-variable) linear regression (regressing lotto spend on disposable income)
- Gujarati multiple (multivariate) linear regression (antique clock auction)
- The volatility “practice bag” (based on Hull’s chapter on estimating volatilities)
I tried to efficiently highlight the key ideas for each topic. There is an associated 12-page PowerPoint that highlights the formulas used in the spreadsheets:
