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Financial Management C A I I B Paper-1
Financial Management C A I I B Paper-1
C A I I B
PAPER-1
MODULE ‘A’
QUANTATIVE TECHNIQUES
&
FINANCIAL MATHEMATICS
RAVI ULLAL
CONSULTANT
TIME VALUE OF MONEY
P V PERPETUITY(A) = A ÷ r
a) SIMPLE RANDOM
b) SYSTEMATIC SAMPLING
ORDER.
OF CERTAIN HAPPENINGS .
.
SAMPLING METHODS
c) STRATIFIED SAMPLING
-- DIVIDE POPULATION INTO HOMOGENOUS GROUPS
TO THE POPULATION
d) CLUSTER SAMPLING
IT IS A MEASURE OF DISPERSION.
POPULATION
SAMPLING METHODS
TERMINOLGY :\
x¯ = MEAN OF A SAMPLE
MEAN.
SAMPLING METHODS
USE Z TABLE
REGRESSION AND CORRELATION
. a = Y¯ - b X¯
.
REGRESSION AND CORRELATION
COEF. OF DETERMINATION IS r²
COEFF. OF CORRELATION IS r
√ r² = + r, HENCE FROM r2 TO r WE KNOW THE STRENGTH
.
REGRESSION AND CORRELATION
COVARIANCE = ∑( X - X¯ )(Y - Y¯ )
n
RELATIONSHIP
HISTORICAL PATTERN;
IS FOUND
SLIDING METHOD
TREND ANALYSIS
SEASONAL INDEX
POPULATION PARAMETER.
PROBABILITY DISTRIBUTION
POP.PARAMETER .
PROBABILITY DISTRIBUTION
PARAMETER.
POPULATION µ.
FORMULA:
ESTIMATE OF POPULATION : σ^= √ (x - x¯ )²
STD. DEVIATION √(n – 1)
Symmetrical around
a vertical line erected at
the mean
The tails extend
Indefinitely but
never reach the
horizontal axis
PROBABILITY DISTRIBUTION
BOND VALUATION
PRINCIPAL
IS COUPON RATE.
NSE/BSE.
BOND VALUATION
MARKET.
VICE VERSA.
INVESTMENT
.
BOND VALUATION
PRICE.
.
SIMULATION
SIMULATION IS IDEAL.
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