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CFA Level 1 - 101 Exemplary Education. Last document update:   ago

Sharpe Ratio Sharpe Ratio = (E(R) - RFR) / σ Larger ratio is better If (Rt) is higher than RFR, then it becomes Safety First Ratio Central Limit Theorem If we take samples of a population, with a large enough sample size, the distribution of all sample means is normal with: - A mean equal to the population mean - A variance equal to the population variance divided by sample size (σ² / n) Standard Error of Sample Mean σ / n^½ Binomial Probability One of two possible outcomes (i.e...

CFA Level 1 - 101 Must Knows Last document update:   ago

CFA Level 1 - 101 Must Knows