Quantitative Investment Analysis, Workbook

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 1Chapter 1 The Time Value of Money 3Learning Outcomes 3Summary 3Practice Problems 4Chapter 2 Organizing, Visualizing, and Describing Data 9Learning Outcomes 9Summary 9Practice Problems 13Chapter 3 Probability Concepts 25Learning Outcomes 25Summary 26Practice Problem 28Chapter 4 Common Probability Distributions 33Learning Outcomes 33Summary 34Practice Problems 35Chapter 5 Sampling and Estimation 43Learning Outcomes 43Summary 43Practice Problems 45Chapter 6 Hypothesis Testing 51Learning Outcomes 51Summary 52Practice Problems 54Chapter 7 Introduction to Linear Regression 63Learning Outcomes 63Summary 63Practice Problems 64Chapter 8 Multiple Regression 75Learning Outcomes 75Summary 76Practice Problems 78Chapter 9 Time-Series Analysis 103Learning Outcomes 103Summary 104Practice Problems 105Chapter 10 Machine Learning 123Learning Outcomes 123Summary 123Practice Problems 125Chapter 11 Big Data Projects 129Learning Outcomes 129Summary 129Practice Problems 131Chapter 12 Using Multifactor Models 141Learning Outcomes 141Summary 141Practice Problems 143Chapter 13 Measuring and Managing Market Risk 149Learning Outcomes 149Summary 149Practice Problems 152Chapter 14 Backtesting and Simulation 161Learning Outcomes 161Summary 161Practice Problems 163Part II Solutions 169Chapter 1 The Time Value of Money 171Solutions 171Chapter 2 Organizing, Visualizing, and Describing Data 185Solutions 185Chapter 3 Probability Concepts 195Solutions 195Chapter 4 Common Probability Distributions 199Solutions 199Chapter 5 Sampling and Estimation 207Solutions 207Chapter 6 Hypothesis Testing 215Solutions 215Chapter 7 Introduction to Linear Regression 223Solutions 223Chapter 8 Multiple Regression 229Solutions 229Chapter 9 Time-Series Analysis 241Solutions 241Chapter 10 Machine Learning 249Solutions 249Chapter 11 Big Data Projects 251Solutions 251Chapter 12 Using Multifactor Models 261Solutions 261Chapter 13 Measuring and Managing Market Risk 267Solutions 267Chapter 14 Backtesting and Simulation 273Solutions 273About the CFA Program 279