Probability

josh_16

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Does anyone know of helpful free videos on probability concepts?
 
Also – how important is this section on the test?? This section is KILLING me to the point where I feel like I should just focus on other topics in this section because I have no clue how to keep this stuff straight.
 
Probability is an integral part of Finance in general. Specifically you really need to know and be able to interpret the normal distribution and how that relates to quantifying risk. Be very comfortable with covariance, correlation, confidence intervals, and expected value.
The graphical side of the readings as well (histograms, distributions, cumulative distributions and so on) always get tested on a few questions and are hopefully easier to grasp.
More specific topics like conditional/unconditional probability, the joint probability rule, Bayes formula, and counting rules could all be tested, but will be more generally confined to the Quantitative methods section of the exam. If you work backwards from the overall weighting those will probably be worth comparatively fewer points than concepts that spread throughout other parts of the curriculum as well.
Above all try not to get bogged down in Quantitative methods. You can always hammer practice problems and come back to it later, but don’t let it derail you from pushing forward aggressively to the rest of the material.
 
@daharmattan1- That is actually great to hear because I am significantly more comfortable with covariance, correlation, normal distributions, sampling, etc.
The specific topics that are just pure probability based with little application to any real world investment applications are what is giving me the hardest time. It’s keeping track of all of the probability rule formulas and Bayes that I can’t keep straight.
I’ve been stuck on that section for sometime but I’m just moving on and going to come back to it later.
I’m going to focus more on the topics like covariance, correlation and eventually come back to the conditional/unconditional ones later but I doubt it will be worth my time to really try and figure those out.
Thanks for your help!
 
@s2000magician Thank you I will check it out!
 
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