What is a Probability Distribution- We know that a [random variable](https://financetrain.com/what-is-a-random-variable/ "What is a Rand...

## COURSE

## Common Probability Distributions

This course introduces some of the discrete and continuous probability distributions most commonly used to describe the behavior of random variables.

#### Course Downloads

Study Notes for CFA Level I

- ### Discrete Random Variable A [random variable](https://financetrain.com/what-is-a-random-variable...
- We can also construct a cumulative distribution function for a [random variable](https://financetrai...
- A discrete uniform random variable is a [discrete random variable](https://financetrain.com/discrete...
- A Bernoulli random variable is a [random variable](https://financetrain.com/what-is-a-random-variabl...
- The future price movement of a stock can be approximated using a [binomial tree](https://financetrai...
- Tracking error is a measure of how closely a portfolio follows its benchmark. A tracking error of ze...
- We know that a discrete uniform random variable is a discrete random variable for which the probabil...
- The [normal distribution](https://financetrain.com/understanding-normal-distribution/ "Understanding...
- A **univariate distribution** refers to the distribution of a single [random variable](https://finan...
- A confidence interval is an interval in which we expect the actual outcome to fall with a given prob...
- A [normal distribution](https://financetrain.com/normal-distribution/ "Normal Distribution") can be ...
- Once we have the z-scores, we can use the standard normal table to calculate the probabilities. The ...
- Shortfall risk refers to the probability that a portfolio will not exceed the minimum return level (...
- Roy’s Safety first criterion states that the optimal portfolio minimizes the probability that portfo...
- The concept of lognormal distribution is very closely related to the concept of normal distribution....
- A discretely compounded rate of return is simply a compounded rate of return with a discrete compoun...
- In contrast to [discrete compounding](https://financetrain.com/discretely-compounded-rate-return/ "D...
- [Monte Carlo Simulation](https://financetrain.com/monte-carlo-simulation-example/ "Monte Carlo Simul...
- The fundamental assumption of the Historical Simulations methodology is that you base your results o...

## LESSONS

Discrete Vs. Continuous Random Variable

Cumulative Distribution Function

Discrete Uniform Random Variable

Bernoulli and Binomial Distribution

Stock Price Movement Using a Binomial Tree

Tracking Error and Tracking Risk

Continuous Uniform Distribution

Normal Distribution

Univariate Vs. Multivariate Distribution

Confidence Intervals for a Normal Distribution

Standard Normal Distribution

Calculating Probabilities Using Standard Normal Di...

Shortfall Risk

Safety-first Ratio

Lognormal Distribution and Stock Prices

Discretely Compounded Rate of Return

Continuously Compounded Rate of Return

Option Pricing Using Monte Carlo Simulation

Historical Simulation Vs Monte Carlo Simulation