Chapter 3
Statistical Concepts and Market
Return
Nature of statistic
Statistics :
Data
Method
2 Method
Descriptive Statistics
Study how data can be summarized effectively to describe the important
aspects of large data sets
Statistics Inference
Involve

Sampling and
Estimation
Introduction
How to sample and to use sample information to estimate population
parameter
Core of chapter: central limit theorem and estimation
End of chapter: discussion of theninterpretation of statistical results
based on fin

Scatter plot
A scatter plot is a graph that shows the relationship between the observations for
two data series in two dimensions.
Scatter plots are formed by using the data from two different series to plot
coordinates along the x- and y-axis, where one

Chapter 11
Portfolio Concepts
Mean Variance Analysis
Mean Variance portfolio theory, the oldest and perhaps most
accepted part of modern portfolio theory, provides the
theoretical foundation for examining the roles of risk and
return in portfolio selecti

Hypothesis Testing
Introduction
Hypothesis Statement about one or more
populations
Scientific Method Observations and
Formulation of a theory to organize and
explain observations
Hypothesis Testing
1. Stating the Hypothesis
2. Identifying the appropriat

Chapter 9 : Multiple
Regression and Issues in
Regression Analysis
Introduction
Multiple linear regression (4)
Using dummy variables in regressions
Violations of regression assumptions (4)
Model specification and error in specification (4)
Models wit

Chapter 10
Time-Series Analysis
1. INTRODUCTION TO TIME-SERIES ANALYSIS
Use time-series data to make investment
decisions
Time series is a set of observation on a
variables outcomes in different time periods
2 chief uses of time-series models: to expla