Quantitative Investment Analysis, Workbook (eBook)

CFA Institute is the global association of investment professionals that sets the standard for professional excellence and credentials. The organization is a champion for ethical behavior in investment markets and a respected source of knowledge in the global financial community. The end goal: to create an environment where investors' interests come first, markets function at their best, and economies grow. CFA Institute has more than 155,000 members in 165 countries and territories, including 150,000 CFA® charterholders, and 148 member societies. For more information, visit www.cfainstitute.org.

Part 1 Learning Objectives, Summary Overview, and Problems 1

Chapter 1 The Time Value of Money 3

Learning Outcomes 3

Summary 3

Practice Problems 4

Chapter 2 Organizing, Visualizing, and Describing Data 9

Learning Outcomes 9

Summary 9

Practice Problems 13

Chapter 3 Probability Concepts 25

Learning Outcomes 25

Summary 26

Practice Problem 28

Chapter 4 Common Probability Distributions 33

Learning Outcomes 33

Summary 34

Practice Problems 35

Chapter 5 Sampling and Estimation 43

Learning Outcomes 43

Summary 43

Practice Problems 45

Chapter 6 Hypothesis Testing 51

Learning Outcomes 51

Summary 52

Practice Problems 54

Chapter 7 Introduction to Linear Regression 63

Learning Outcomes 63

Summary 63

Practice Problems 64

Chapter 8 Multiple Regression 75

Learning Outcomes 75

Summary 76

Practice Problems 78

Chapter 9 Time-Series Analysis 103

Learning Outcomes 103

Summary 104

Practice Problems 105

Chapter 10 Machine Learning 123

Learning Outcomes 123

Summary 123

Practice Problems 125

Chapter 11 Big Data Projects 129

Learning Outcomes 129

Summary 129

Practice Problems 131

Chapter 12 Using Multifactor Models 141

Learning Outcomes 141

Summary 141

Practice Problems 143

Chapter 13 Measuring and Managing Market Risk 149

Learning Outcomes 149

Summary 149

Practice Problems 152

Chapter 14 Backtesting and Simulation 161

Learning Outcomes 161

Summary 161

Practice Problems 163

Part II Solutions 169

Chapter 1 The Time Value of Money 171

Solutions 171

Chapter 2 Organizing, Visualizing, and Describing Data 185

Solutions 185

Chapter 3 Probability Concepts 195

Solutions 195

Chapter 4 Common Probability Distributions 199

Solutions 199

Chapter 5 Sampling and Estimation 207

Solutions 207

Chapter 6 Hypothesis Testing 215

Solutions 215

Chapter 7 Introduction to Linear Regression 223

Solutions 223

Chapter 8 Multiple Regression 229

Solutions 229

Chapter 9 Time-Series Analysis 241

Solutions 241

Chapter 10 Machine Learning 249

Solutions 249

Chapter 11 Big Data Projects 251

Solutions 251

Chapter 12 Using Multifactor Models 261

Solutions 261

Chapter 13 Measuring and Managing Market Risk 267

Solutions 267

Chapter 14 Backtesting and Simulation 273

Solutions 273

About the CFA Program 279