Month: April 2012

Earnings per Share (EPS) computations in CFA Level I
Good afternoon everyone! This is my first blog post from Tel Aviv, Israel, where I decided to go to take some time to work on my CFA Level I curriculum as the exam scheduled on June 2nd is getting closer and closer. The first topic I wanted to come back on is part of the…

Logarithmic approximation: application in CFA Level I and interview questions
Good afternoon everyone, I’m almost done going through the CFA material for the Level I curriculum and I came across what they simply call an approximation in the Schweser resources but what actually is in fact a logarithmic approximation of numbers close to 1. What is the logarithmic approximation for numbers close to 1? Assuming…

Introduction to RiskNeutral Pricing Theory
I recently came across this QuantSE post where the author of the post tries to compute an expectation under the riskneutral measure \(\mathbb{Q}\). Riskneutral pricing is a technique widely use in quantitative finance to compute the values of derivatives product and I thought I could write a post explaining what the theory is and how it…