01 V1_20140121_英文Notes_数量.doc

金程教育WWW.GFEDU.NET 专业?领先?增值 PAGE16 / NUMPAGES121 专业来自百分百的投入 Chapter 2： Quantitative Method Guideline Quantitative analysis is a basic subject in the field of finance. It makes use of some mathematical tools such as probability distribution, expectation, variance, correlation coefficient and so on to calculate the financial return and risk. It plays an important role in the modern financial practice. This chapter mainly introduces the basic content from the time value of money, probability theory and mathematical statistics, and technical analysis. Readers should understand the calculation of the present value and future value of cash flows and the application of technical analysis tools in practice. Test Direction Quantitative analysis is a fundamental subject in CFA. It is the basis of financial analysis. Therefore, quantitative analysis is a key part in the CFA level 1. It covers 12% of contents in the exam. There are 8 readings in the Quantitative Method which could be divided to 4 parts. The first part introduces the time value of money; the second part is about the basic concepts of probability theory and descriptive statistics; we could learn the inferential statistics in the third part; the fourth part is technical analysis. The first part – time value of money is the foundation for other subjects of CFA, which is not the important part in this chapter. The fourth part – technical analysis takes a small proportion in the exam. Therefore, the key points of Quantitative Method are the content of probability and statistics. Time Value of Money Three different expressions of interest rate An interest rate is the rate at which interest is paid by a borrower (debtor) for the use of money that they borrow from a lender (creditor).it is a key to understanding the time value money. Simple interest is calculated on the original amount borrowed (called the principal). Simple interest is better suited for short-term