Category: Level II

CFA Level III, here I come!
Good evening everyone! I know it’s been a long time since I last posted on the site and I would like to apologize for not having been adding new content since the end of May. Quite frankly the reason why I’ve been away from the blog from a long time is twofold. First, I am…

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…