In the last few posts in the series we covered elasticity of demand, consumer demand and types of profits. In this posts we will look into the different types of costs and how they vary with output. Fixed costs, marginal cost,total cost, average cost and variable cost: Total fixed costs are the costs that do… Read More

## Accounting profit / Economic profit / Normal profit- CFA Level 1

In the last few posts in the Demand and supply analysis series, we covered the elasticity of demand and supply and factors that effect consumer demand. In this post we will look into the different types of profit. Accounting Profit: Accounting profit is revenue minus explicit costs. Explicit costs to a firm are the payments… Read More

## Consumer Demand : What affects it ? – CFA Level 1 – Economics

In the previous post we covered the elasticity of demand and supply. In this post we will look into consumer demand and what affects it. Consumer Demand Utility theory explains consumer demand based on preferences for alternative combination of goods. The satisfaction that a consumer derives from consuming a combination of goods is measured by utility…. Read More

## Elasticity of demand and supply – CFA Level 1 – Economics

Over the last few posts in the ‘Demand and Supply analysis’ series we have covered the factors affecting quantity demanded and supplied, equilibrium price and quantity and the effect of government intervention on demand and supply. In this post we will examine the elasticity of demand and supply. Effect of elasticity on the incidence of… Read More

## Price Ceiling and Price Floor – CFA Level 1 – Economics

In the previous posts in the ‘Demand and supply’ analysis series, we saw the factors affecting the quantity demanded and supplied and equilibrium price and quantity. In this post we will see the effect of government intervention on demand and supply. Effect of government regulation and interference on demand and supply: Government imposed price ceiling,… Read More

## Equilibrium price and quantity – CFA Level 1 – Economics

In the previous post we learnt about factors affecting the quantity demanded and supplied. In this post we will look into equilibrium price and quantity. Equilibrium price and Quantity The price and quantity where the demand and supply curves intersect are called as the equilibrium price and quantity. If the market price is above the… Read More

## Demand and Supply Analysis – CFA Level 1 – Economics

Hi all, from this post we start a new subject – economics and also start a seires of posts covering the analysis of demand and supply. Hope you will find them informative and useful…so let’s begin our first post…. Demand and Supply Analysis: Introduction There are two types of markets, markets for finished goods and… Read More

## Type I error & type II error : Hypothesis Testing – CFA Level 1

In the last post we learnt about the steps followed in hypothesis testing and one tailed and two tailed tests. Today we will learn about type I error and type II error and what they represent. So read on to find out what they are… The test statistic is calculated as the difference between the… Read More

## One tailed test & Two tailed test : Hypothesis Testing – CFA Level 1

In the last two posts we read about sampling and learnt about the various sampling types and sampling distributions. Today we start a new topic – hypothesis testing wherein we will learn about the steps followed in hypothesis testing, one tailed test and two tailed test. In the next part we will look into type I and… Read More

## Student’s t-distribution – CFA Level 1 – Quantitative Methods

In the last post we saw the methods of sampling. In this post we will see sampling distributions. Student’s t-distribution: Student’s t-distribution is a distribution that is symmetrical about the mean and has fatter tails than a normal distribution i.e., it has more observations in the tail. T-distribution is more appropriate to use when the… Read More

## Sampling and Estimation – CFA Level 1 – Quantitative Methods

In the previous post we discussed types of normal distribution. Today we will discuss sampling types and how samples are selected from the data for conversion into formats in which they can be analyzed and conclusions about the data can be drawn from them. In the real world it is thought easier to work with… Read More

## Common Probability Distribution (Part 2) – CFA Level 1 – Quantitative Methods

In the last two posts we read about covariance and correlation and the different types of random variables. In this post we will move forward to discussing the types of probability distribution wherein we will see the various types of normal distribution. Cumulative Distribution Function Cumulative Distribution function is the sum of the probabilities of… Read More

## Common Probability Distributions – CFA Level 1 – Quantitative Methods

In the previous post we covered covariance and correlation. In this post we will look at discrete and continuous random variables. Probability Distribution A probability distribution is a graphical presentation of the probabilities of all possible outcomes of a random variable X. The probabilities of all possible outcomes should sum to 1. Eg. For a… Read More

## Probability concepts (part 2) – CFA Level 1 – Quantitative Methods

Since the last post we started a seires of posts covering probability concepts. In the post we covered conditional and unconditional probabilities. In this post today we take the probability concepts series forward and look into covariance and correlation and the math of permutations and combinations. Covariance and Correlation: Covariance is a measure of quantitative… Read More

## Probability Concepts (Part 1) – CFA level 1 – Quantitative Methods

In the previous posts we have touched upon the concepts of time value of money, NPV and IRR decison rules and basic statistical concepts. From this post we start a series of posts covering probability math and probability distribution. So let’s get started. Probability concepts relates to the chance of an event occurring. An event… Read More

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