Notes 1 - Basic Statistics

Notes 1 - Basic Statistics - Calculus y=f(x y=x is the...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
P=2 - 12 Q P’ = - 12 This is the derivative and it tell us the slope of the line P Slope = - 12 Q 4 2 y f’ = 1x this is the slope of the line (it varies because slope isn’t constant) f’ = 1x 2 this tells us what direct the function is going in x To Optimize a Function: 1. Take the derivative 2. Set it equal to 0 and solve for x 3. Take the second derivative If f’’<0 – we have a maximum If f’’ >0 – we have a minimum If f’’ = 0 – we have an inflection X= 1 4 Expected Return is essentially the mean of the past results, which is the most likely next occurrence riance tells us how far the observed values are from the mean, over all of our observations added together and then divided T. This is in squ andard deviation just gets rid of the squared returns to tell us how the observations varied from the mean on average. OR We subtract 1 to account for errors OR Covariance tells how things move together Positive: move together Negative: don’t move together *If you take the covariance of a security against itself, you get the variance!
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern