# Recent Articles

## Probability of Attaining a Return Goal

Earlier we looked at calculating the probability of beating a fixed target. Now we will look at calculating the probability of beating a benchmark which is itself stochastic. Let us consider two assets A and B with the following details: Mean Standard Deviation...

read more## Study Material for CFA Exam

We are happy to announce the launch of “Study Material for CFA Exam” from Finance Train. At Finance Train you can access all the study material that you will require to prepare for the CFA exam (Level I, II and III). The study material is organized as per the latest...

read more## Probability of One Portfolio Outperforming Another Portfolio

Let us consider two assets A and B with the following details: Mean Standard Deviation Correlation A $latex \sigma_{A}=20\%$ $latex \rho_{AB}=30\%$ B $latex \mu_{B}=12\%$ $latex \sigma_{B}=26\%$ We have a total of $10 million to invest....

read more## Value at Risk (VaR) of a Portfolio

Value-at- Risk (VaR) is a general measure of risk developed to equate risk across products and to aggregate risk on a portfolio basis. VaR is defined as the predicted worst-case loss with a specific confidence level (for example, 95%) over a period of time (for...

read more## Diversification and Portfolio Risk

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read more## What is Serial Correlation (Autocorrelation)?

Correlation is a familiar concept used to describe the strength of the relationship between variables. Serial correlation (also known as autocorrelation) is the term used to describe the relationship between observations on the same variable over independent periods...

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