Learning Module 4 of Quantitative Methods 6–9% of the exam
Probability Trees and Conditional Expectations
3 lessons. About 0 minutes in cram mode, 0 minutes in full.
Lessons for this module are being written. The outcomes and lesson plan below are final.
Lessons
- 1 Expected Value and Variance
Coming soon
- 2 Probability Trees and Conditional Expectations
Coming soon
- 3 Bayes' Formula and Updating Probability Estimates
Coming soon
What the exam expects you to do
- Calculate expected values, variances, and standard deviations and demonstrate their application to investment problems.
- Formulate an investment problem as a probability tree and explain the use of conditional expectations in investment application.
- Calculate and interpret an updated probability in an investment setting using Bayes’ formula.