We know that an individual will chose a bundle of goods that provide him the ... Continue reading
CFA® Exam Level 1
Budget Constraints …
We learned that indifference curve shows the bundle of goods that provide ... Continue reading
Consumer Choice Theory and Utility Theor …
We assume that people understand the choices available to them and the ... Continue reading
Interpreting Forward Exchange Rate Quote …
Forward exchange rate contracts trade at premiums or discounts to the spot ... Continue reading
Why Lognormal Distribution is Used to De …
The concept of lognormal distribution is very closely related to the concept ... Continue reading
Short-fall Risk, Safety-first Ratio, and …
Shortfall Risk Shortfall risk refers to the probability that a portfolio ... Continue reading
What is Tracking Error …
Tracking error is a measure of how closely a portfolio follows its ... Continue reading
Most Common CFA Level 1 Questions and To …
As the exam date approaches, we all want to make the best use of our time. ... Continue reading
Corporate Debt Securities and Rights of …
Apart from raising capital in the form of equity, corporates also borrow ... Continue reading
Overview of Municipal Bonds …
We learned about the securities issued by the central government of a ... Continue reading
Collateralized Mortgage Obligations (CMO …
Collateralized mortgage obligations (CMOs) are a type of mortgage-backed ... Continue reading
Collateralized Mortgage Obligations and …
Collateralized Mortgage Obligations are a type of Special Purpose Vehicle ... Continue reading
Mortgage Pass-through Securities …
Mortgage-backed securities are one of the many financial innovations born in ... Continue reading
Federal Agency Securities …
In any country, the central government can create an agency or a separate ... Continue reading
Overview of U.S. Treasury Securities …
The United State's Treasury issues various types of securities known as US ... Continue reading
Credit Risk and Rating of Sovereign Debt …
As we have learned earlier, the investors in bonds are exposed to credit ... Continue reading
Types of Bond Markets …
Even though there is no standard classification of bond market, we can ... Continue reading
Event Risk and Sovereign Risk in Bonds …
Event Risk The investors in bonds may also face event risk, i.e., the ... Continue reading
Volatility Risk in Bonds with Embedded O …
Bonds with embedded options such as call options and put options also have ... Continue reading
Inflation Risk in Bonds …
Almost all bonds expose an investor to inflation risk, also known as ... Continue reading