CFA LV1 Quantitative method - Module 3 (chắc thế)

Author

LuciusVU (Vucius)

LEARNING OUTCOMES

calculate, interpret, and evaluate measures of central tendency and location to address an investment problem

calculate, interpret, and evaluate measures of dispersion to address an investment problem

interpret and evaluate measures of skewness and kurtosis to address an investment problem

interpret correlation between two variables to address an investment problem

Measures of Central Tendency

  • The Arithmetic Mean (mean)

  • median

  • mode

Dealing with Outliers

In time series, it is called anomaly

Measures of Location

  • quantile

  • quintiles

  • deciles

  • percentiles

  • interquartile range (IQR = Q3-Q1)

              0%          25%          50%          75%         100% 
-12.76521975  -0.41034647   0.07055116   0.56591993  10.95719676 
              0%          20%          40%          50%          60%         100% 
-12.76521975  -0.60605115  -0.09140974   0.07055116   0.22958871  10.95719676

  • boxplot / violon

  • raincloud plot

    MEASURES OF DISPERSION

The range

\[ range = max - min \]

Mean Absolute Deviations

mean absolute deviation (MAD) $$$$

\[ MAD = \frac{\sum_{i=1}^{n} |X_i-X|}{n} \]

Sample Variance and Sample Standard Deviation

\[ s^2= \frac{\sum_{i=1}^{n} (X_i-X)^2}{n-1} \]

un

defined coefficient of variation

\[ CV = \frac{s}{X} \]

MEASURES OF SHAPE OF A DISTRIBUTION

\[ f(x)= \frac{1}{\sqrt{2\pi \sigma ^{2}}}e^{\frac{-(x-\mu )^{2}}{2\sigma ^{2} \]

CORRELATION BETWEEN TWO VARIABLES

correlation does not imply causation

https://www.zmescience.com/feature-post/website-highlights-difference-correlation-causation/