Returns of Alternative Investments
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-LOS a: interpret interest rates as required rates of return, discount rates, or opportunity costs
-LOS f. demonstrate the use of a time line in modeling and solving time value of money problems
-LOS a: identify and compare data types
-LOS b: describe how data are organized for quantitative analysis
-LOS c: interpret frequency and related distributions
-LOS d: interpret a contingency table
-LOS e: describe ways that data may be visualized and evaluate the uses of specific visualizations.
-LOS f: describe how to select among visualization types.
-LOS g: calculate and interpret measures of central tendency
–LOS h: evaluate alternative definitions of mean to address an investment problem
-LOS i: calculate quantiles and interpret related visualizations
-LOS j: calculate and interpret measures of dispersion
-LOS k: calculate and interpret target downside deviation
-LOS n: interpret correlation between two variables
–LOS a: define a random variable, an outcome, and an event
– LOS c: describe the probability of an event in terms of odds for and against the event
– LOS d: calculate and interpret conditional probabilities
– LOS e: demonstrate the application of the multiplication and addition rules for probability
– LOS f: compare and contrast dependent and independent events
– LOS g: calculate and interpret an unconditional probability using the total probability rule
– LOS i: explain the use of conditional expectation in investment applications
– LOS j: interpret a probability tree and demonstrate its application to investment problems
– LOS m: calculate and interpret an updated probability using Bayes’ formula
-LOS f. explain the key properties of the normal distribution
-LOS i. explain how to standardize a random variable
-LOS j. calculate and interpret probabilities using the standard normal distribution
-LOS p. describe Monte Carlo simulation
-LOS b: explain sampling error
-LOS 5d: explain the central limit theorem and its importance
-LOS e: calculate and interpret the standard error of the sample mean
-LOS f: identify and describe desirable properties of an estimator
-LOS 5g: contrast a point estimate and a confidence interval estimate of a population parameter
-LOS h: calculate and interpret a conidence interval for a population mean, given a normal distribution
with 1) a known population variance, 2) an unknown population variance, or 3) an unknown population variance and a large sample size
– LOS b: distinguish between one-tailed and two-tailed tests of hypotheses
-LOS e: explain and interpret the p-value as it relates to hypothesis testing
-LOS f: describe how to interpret the significance of a test in the context of multiple tests
-LOS m: explain tests of independence based on contingency table data
-LOS 7h: describe different functional forms of simple linear regressions
LOS e: calculate and interpret major return measures and describe their appropriate uses
LOS b: calculate, interpret, and evaluate measures of dispersion to address an investment problem
LOS c: interpret and evaluate measures of skewness and kurtosis to address an investment problem
LOS d: interpret the correlation between two variables to address an investment problem
LOS c: calculate and interpret an updated probability in an investment setting using Bayes’ formula
LOS b: describe Monte Carlo simulation and explain how it can be used in investment applications
LOS b: explain tests of independence based on contingency table data
LOS f: describe different functional forms of simple linear regressions
LOS b: describe Big Data, artificial intelligence, and machine learning
LOS c: describe applications of Big Data and Data Science to investment management