Level I CFA Quant: Statistical Concepts and Market Returns-Lecture 1

[@IFT-CFA]

Want to get the printable PDF slides for these videos? You can get these at a low price from here: ift.world/product/high-yield-course-2021/

[@vidithshetty544]

ca anyone help me understand how the frequency varies for intervals 1

[@miteshkelji]

from where and how did the frequency come from in the last question?

[@janakiram4445]

Thank you so much sir, is this applicable for 2022 ?

[@rawanromieh3534]

may all your dreams come true , may all the good in this world finds you

[@IFT-CFA]

Dear Student. Thank you for your great comments. We are really pleased that you are able to benefit from IFT KZbin videos. Be sure to Like the videos; share IFT videos with your social media circles. Thank you! - IFT Support Team

[@vidithshetty544]

H, could anyone help me explain the relation between interval and frequency in the last question. how the answer for frequencies came up ? thanks

[@ikennaobi8342]

Hello Sir. Please is this video applicable for May 2022?

[@aarushisingla4543]

Hi, Could you please tell how did you calculate frequency in the last practice question ?

[@IFT-CFA]

you need to calculate cumulative frequency for the interval 10 ≤r r ≤12. Relative frequency for that interval is 33.33% while cumulative frequency for previous interval is 50%. So the cumulative frequency for the required interval is 50% + 33.33% = 83.33%. IFT support team

[@ruchitapatil8317]

Hello Sir, are these videos applicable for May 2022?

[@TechMaster-of8sg]

Hi, a quick question. Bond Maturity? It does not have maturities of absolute 0, so how is it a ratio scale?

[@ahteshamali3980]

Sir where this 8.33 percent came in relative frequency how does you calculate plase explain

[@abdullah4283]

In last practice the frequency was given or was calculated?

[@IFT-CFA]

Frequency was given in the last practice question. IFT Support Team

[@lamiyahajizada7581]

hello, could you tell how did you solve last practice question on this video?

[@IFT-CFA]

You need to calculate cumulative frequency for the interval 10 ≤r r ≤12. Relative frequency for that interval is 33.33% while cumulative frequency for previous interval is 50%. So the cumulative frequency for the required interval is 50% + 33.33% = 83.33%. IFT support team

[@kshitijsrivastava561]

cAn you please tell which calculator to buy of BA - Analyst ? or the advanced, professional one ?

[@IFT-CFA]

Dear Kshitij, Buying the BA-II Plus Professional can prove to be a good long term investment. As the professional version has more features and will be more useful for Level II and III. It has additional features like calculating discounted payback period etc. We would recommend to go for the professional version, i.e. BA II Plus™ Professional financial calculator. IFT Support Team

[@prateekmeghani2898]

Hi Sir, please take a moment to look at my question. Why is Bond Maturity in types of measurement scales not an Interval scale, since it takes an ‘x’ amount of time to matures from day zero, can’t we consider it in interval scale? Moreover why does absolute zero makes no sense in interval scale? 0 temperature holds value but when it comes to payment 0 means today, so 0 should be a valid interval scale, shouldn’t it be?

[@IFT-CFA]

The ratio scale of measurement is the most informative scale. It is an interval scale with the additional property that its zero position indicates the absence of the quantity being measured. You can think of a ratio scale as the three earlier scales rolled up in one. Like a nominal scale, it provides a name or category for each object (the numbers serve as labels). Like an ordinal scale, the objects are ordered (in terms of the ordering of the numbers). Like an interval scale, the same difference at two places on the scale has the same meaning. And in addition, the same ratio at two places on the scale also carries the same meaning. The Fahrenheit scale for temperature has an arbitrary zero point and is therefore not a ratio scale. However, zero on the Kelvin scale is absolute zero. This makes the Kelvin scale a ratio scale. For example, if one temperature is twice as high as another as measured on the Kelvin scale, then it has twice the kinetic energy of the other temperature. Another example of a ratio scale is the amount of money you have in your pocket right now (25 cents, 55 cents, etc.). Money is measured on a ratio scale because, in addition to having the properties of an interval scale, it has a true zero point: if you have zero money, this implies the absence of money. Since money has a true zero point, it makes sense to say that someone with 50 cents has twice as much money as someone with 25 cents. Similarly, bond maturity is measured in ratio scale because if a bond maturity is 0 time then it implies it is time zero i.e. T0. Zero-point in an interval scale is arbitrary. For example, the temperature can be below 0 degrees Celsius and into negative temperatures. The ratio scale has an absolute zero or character of origin. Height and weight cannot be zero or below zero. IFT support team

[@pratiksurve6745]

Sir, Are these videos (Quantitative Methods) applicable for June 2020 exams?

[@IFT-CFA]

Yes. IFT Support Team

[@pranjalpandey4480]

This video is applicable for 2019 june exam also ?

[@IFT-CFA]

Yes

[@prajwalshravanur4940]

In the last example how did we get 16.67 for last interval?

[@IFT-CFA]

it is calculated as 2/12 = 16.67 IFT Support Team

[@fin-pundit9631]

Why bond matuity is not Interval? As we know coupon can be zero(So Ratio scale) EPS Can be zero (So ratio scale) But Bond cannot have zero maturity (So it should fall under Interval)

[@IFT-CFA]

The ratio scale of measurement is the most informative scale. It is an interval scale with the additional property that its zero position indicates the absence of the quantity being measured. You can think of a ratio scale as the three earlier scales rolled up in one. Like a nominal scale, it provides a name or category for each object (the numbers serve as labels). Like an ordinal scale, the objects are ordered (in terms of the ordering of the numbers). Like an interval scale, the same difference at two places on the scale has the same meaning. And in addition, the same ratio at two places on the scale also carries the same meaning. The Fahrenheit scale for temperature has an arbitrary zero point and is therefore not a ratio scale. However, zero on the Kelvin scale is absolute zero. This makes the Kelvin scale a ratio scale. For example, if one temperature is twice as high as another as measured on the Kelvin scale, then it has twice the kinetic energy of the other temperature. Another example of a ratio scale is the amount of money you have in your pocket right now (25 cents, 55 cents, etc.). Money is measured on a ratio scale because, in addition to having the properties of an interval scale, it has a true zero point: if you have zero money, this implies the absence of money. Since money has a true zero point, it makes sense to say that someone with 50 cents has twice as much money as someone with 25 cents. Similarly, bond maturity is measured in ratio scale because if a bond maturity is 0 time then it implies it is time zero i.e. T0. Zero-point in an interval scale is arbitrary. For example, the temperature can be below 0 degrees Celsius and into negative temperatures. The ratio scale has an absolute zero or character of origin. Height and weight cannot be zero or below zero. IFT Support Team

[@jacklife85]

I think at minute 15.46 you are referring to the wrong interval, it should be the interval 0.00% - 02.00% and not 02.00%-04.00%, right?

[@IFT-CFA]

its 02.00% - 04.00%.IFT Support Team

[@panachaiinthakul4172]

Sir for the last question, could you just sum the frequency and divided by total frequency = 8/12 x 100 = 83.33% ?

[@IFT-CFA]

Yes you can do it that way. IFT support team

[@fenrir_szn6978]

Your math is wrong as 8/12 x 100 is 66.667...it should be 10/12 x 100 which would give us the 83.333.

[@MrAnkitchamaria]

Sir,I have a doubt. In "cumulative absolute frequency graph" you said that for an extreme case of 100% return the cumulative frequency will be equal to the total number of months in the measurement period and the graph will be flat. However, this might be true in this case but may not be in general. Can you please help.

[@IFT-CFA]

No it is true, in general. The cumulative distribution tends to flatten out when returns are extremely negative or extremely positive. In essence, the slope of the cumulative absolute distribution at any particular interval is proportional to the number of observations in that interval. IFT Support Team

[@MrAnkitchamaria]

@@IFT-CFA Sir, suppose there are 2 months where returns are in between 100 and 105 percent and this goes on till 150 percent. Therefore the graph flattens out on the right of 150 and not 100. Please explain.

[@Yaqoubh]

Thank you !

[@IFT-CFA]

You are welcome! IFT Support Team

[@gpsarena9627]

Simply amazing lectures Sir... Are High yield notes available for free for level 1? I'm ready to pay as well.

[@IFT-CFA]

Yes they are. Please visit our website www.ift.world IFT support team

[@Алия-щ5ж]

Is it applicable for 2021?

[@IFT-CFA]

Yes it is! IFT Support Team

[@antongladkikh135]

thanks for the videos but give more time to pause the video before revealing the answer to practice questions please :)

[@milesk3781]

I believe , we can pause it ourselves.

[@IFT-CFA]

Yes you can do that. IFT support team

[@lenny6428]

omg thank you sir

[@IFT-CFA]

Dear Su, Thank you for your comments. We are glad that you find IFT material helpful. IFT Support Team

[@TraderPsyche96]

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