Browse CFA Level 1

Chapter 6: Simulation Methods

Chapter 6: Simulation Methods (CFA Level 1): Key concepts, definitions, and exam tips with practical examples. Use it to reinforce intuition and avoid common pitfalls.

In this section

  • Normal vs. Lognormal Distributions in Asset Price Modeling
    Normal vs. Lognormal Distributions in Asset Price Modeling (CFA Level 1): Normal Distribution in Finance, Lognormal Distribution in Finance, and Key Distinctions and Why They Matter. Key definitions, formulas, and exam tips.
  • Monte Carlo Simulation and Its Uses in Investment Analysis
    Monte Carlo Simulation and Its Uses in Investment Analysis (CFA Level 1): Fundamentals of Monte Carlo Simulation, Monte Carlo Process, and Key Assumptions and Inputs. Key definitions, formulas, and exam tips.
  • Bootstrap Resampling Methods
    Bootstrap Resampling Methods (CFA Level 1): Key Concepts, Resampling and “With Replacement”, and Why Bootstrap?. Key definitions, formulas, and exam tips.
  • Quasi‑Monte Carlo and Variance Reduction Techniques
    Quasi‑Monte Carlo and Variance Reduction Techniques (CFA Level 1): Low-Discrepancy Sequences: A Closer Look, Variance Reduction Techniques, and Antithetic Variates. Key definitions, formulas, and exam tips.

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Chapter 5: Portfolio Mathematics
Chapter 7: Estimation and Inference