CFA Level 1 Study Notes – Financial Statement and Analysis
Study Session 6 Reading 15 – Introduction to Financial Statement Analysis –LOS 15a: describe the roles of financial reporting and financial statement analysis –LOS 15b: describe the roles of the statement of financial position, statement of comprehensive income, statement of…
CFA Level 1 Study Notes – Portfolio Management
Study Session 18 Reading 51 (48 in 2022) – Portfolio Management: An Overview – LOS 51a: describe the portfolio approach to investing – LOS 51b: describe types of investors and distinctive characteristics and needs of each – LOS 51c: describe defined contribution and…
CFA Level 1 Study Notes – Equity Investments
Study Session 12 Reading 36 – Market Organization and Structure – LOS 36a: explain the main functions of the financial system – LOS 36b: describe classifications of assets and markets – LOS 36c: describe the major types of securities, currencies,…
Activity Variation With Business Cycle
Resource Use During a Recession Resources required for the production of goods and services are closely related to the business cycle. Aggregate demand reduces with the beginning of a downturn resulting in the accumulation of inventories. As a result, companies…
Unconditional Vs Conditional Probabilities
Unconditional probability (also known as marginal probability) is simply the probability that an event occurs without considering any other preceding events. In other words, unconditional probabilities are not dependent on the occurrence of any other events; they are ‘stand-alone’ events….
Probability Rules
Probability rules are the concepts and facts that must be taken into account while evaluating the probabilities of various events. The CFA curriculum requires candidates to master 3 main rules of probability. These are the multiplication rule, the addition rule,…
Application of Probability Rules
Probability rules are the concepts and facts that must be taken into account while evaluating the probabilities of various events. The CFA curriculum requires candidates to master 3 main rules of probability. These are the multiplication rule, the addition rule,…
Independent vs. Dependent Events
Two or more events are independent if the occurrence of one event has no influence on the occurrence of the other event(s). Let us put this in annotations:
Unconditional Probability Using the Total Probability Rule
We can use the total probability rule to determine the unconditional probability of an event in terms of conditional probabilities on certain scenarios.
Price Elasticity, Income Elasticity and Cross Elasticity
Elasticity measures the sensitivity or responsiveness of one variable to another. There are three main different forms of elasticity – price elasticity, income elasticity, and cross-price elasticity Price Elasticity Price elasticity is measured in percentage changes in each of the…
