About this Lecture

This lecture instructs IMAC candidates on the statistics used to describe and analyse the risk and return characteristics of securities and portfolios including:

• computing time-weighted and dollar-weighted returns in an investment portfolio over multiple years, and differentiating between their application;
• calculating geometric and arithmetic mean and describing the differences between the two;
• describing the differences between compound and simple interest;
• understanding the significance of the normal distribution, descriptive statistics and their app...