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cfa

  1. Nicole Seaman

    CFA Level 1 CFA: Money Market Yields

    In this video, we look at the different measures of money market yield. When we say money market, we distinguish between money market and capital market where the big difference is time.
  2. Nicole Seaman

    CFA Level 1 CFA: Correlation, covariance and probability topics

    Session 2, Reading 9 (Part 2): This video reviews portfolio variance and covariance, where covariance is the expected cross-product. We look at correlation, which is given by the covariance divided by the product of standard deviations, and therefore standardizes the covariance into a unitless...
  3. Nicole Seaman

    CFA Level 1 CFA: Conditional, unconditional and joint probabilities

    In terms of this CFA playlist, we are still in the early quantitative methods or the foundations of quantitative methods. In the previous video, I reviewed some basic statistical concepts and now I follow that up with a review of some basic or foundational probability concepts. We want to hit...
  4. Nicole Seaman

    CFA Level 1 CFA: Measures of dispersion including volatility

    A previous video in this CFA playlist looked at classic measures of central tendency. This is also called the first moment of the distribution or the distributions the location where is the distribution centered. When we say that I think most of us think of the average or the mean, but we saw...
  5. Nicole Seaman

    CFA Level 1 CFA: Statistical concepts and Quantiles

    Statistics is broadly either descriptive (aka, exploratory data analysis, EDA) or inferential (e.g., making predictions or forecasts). There is generally only one defined population and descriptive measures of the population are called parameters (and denoted with Greek symbols; e.g., mu, µ, for...
  6. Nicole Seaman

    CFA Level 1 CFA: Holding period, money-, and time-weighted returns

    The holding period return (HPR) is given by [P(t) + D - P(0)]/P(0). The HPR does not account for the time interval, so importantly it is annualized; for example, a 15.50% HPR over 5 years is much less impressive than over one month. The time-weighted return (TWR) chains HPR together and is given...
  7. Nicole Seaman

    CFA Level 1 CFA: Discounted Cash Flow & Internal Rate Return (DCF, IRR)

    Here we look at the calculation and interpretation of two of the most popular decision-making tools in corporate finance: Net Present Value and Internal Rate of Return.
  8. Nicole Seaman

    CFA Level 1 CFA: Time value of Money (TVM), Part 2

    An Annuity is a finite set of level sequential cash flows. An Ordinary Annuity has a first cash flow that occurs one period from now (indexed at t = 1). An Annuity Due has a first cash flow that occurs immediately (indexed at t = 0). A Perpetuity is a perpetual annuity (a set of level...
  9. Nicole Seaman

    CFA Level 1 CFA: Time value of Money (TVM), Part 1

    An interest rate can be a required rate of return (aka, hurdle rate), a discount rate, and/or an opportunity cost. We can deconstruct an interest into its components where the rate, r = real risk-free interest rate + inflation premium + default risk premium + liquidity premium + maturity...
  10. K

    Is it worthwhile to pass the FRM before attempting the CFA?

    Hello everyone, I was wondering if it would be useful to clear both parts of the FRM exam prior to attempting the CFA so as to benefit from any overlap between the curriculum of the two? I am under the impression that FRM deals with fewer topics than the CFA, but in greater depth. So, if...
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