Common Probability Distributions CFA® Exam Level 1 This course introduces some of the discrete and continuous probability distributions most commonly used to describe the behavior of random variables. Course Content What is a Probability Distribution 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 Distribution 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