Probability Concepts

Free
Difficulty:All Levels

In this course, you will learn about probability theory and its applications in measuring risk in investments.

  • Common terminology of probability concepts
  • Calculating probability of an event
  • Unconditional and conditional probabilities
  • Multiplication, addition and total probability rules
  • Joint probabilities
  • Conditional expectations in investment applications
  • Covariance and Correlation
  • Expected value, variance and standard deviation of an asset and a portfolio
  • Bayes’ formula
  • Solving counting problems using factorials, combinations and permutations