Author: Jérémie Smaga
-
CFA Level II: Valuating Bonds with Embedded Options
Good evening everybody, Tonight’s focus will be dedicated to valuing bonds with embedded options. I chose this topic because it involves binomial trees, which is an important an very testable point of the Level II curriculum. Binomial trees are encountered in two different topics: Fixed Income and Derivatives. Although the concept is the same for…
-
CFA Level II: Forward Markets and Contracts
Good evening, A few days away from the exam, I am taking a bit of time to post the main picture of some topics on the curriculum, which I think can be simply explained. This post is dedicated to forwards. The rationale behind forwards is very simple. Assume there is an asset $S$ which is worth…
-
CFA Level 2: Quantitative Methods – Autoregressive Processes
Hello again everybody, We’re getting towards the final straight line before the exam, and I will post here the content of all the little flash cards that I created for myself. Starting back where I left, in the Quantitative Methods this post will be about Autoregressive Processes sometime denoted AR. These processes are of the following…
-
CFA Level II: Quantitative Methods, ANOVA Table
Good evening everyone, Following my last post on multiple regression, I would like to talk about ANOVA tables as they are a very important part of the Level II curriculum on quantitative methods. ANOVA stands for ANAlysis Of VAriance; it helps to understands how well a model does at explaining the dependent variable. First of…
-
CFA Level II: Quantitative Methods, Multiple Regression
Following my first post about the Level II and specifically correlation, I am now moving on to the main topic if this year’s curriculum: multiple regression. Before I get started, I want to mentioned that the program talks about regression in 2 steps: it starts by discussing the method with 1 independent variable and then…