Random variable

Outcome

mutually exclusive

"given"
Basic concepts exhaustive
Event

dependent vs independent events independent event formula

Expected value
Probability
Random variable
Variance and standard deviation
probability of any event is between 0 and 1

sum of the probabilities of any set of 

Probability tree
Characteristics mutually exclusive and exhaustive events = 1

Expected return Subjective probability

Basic features of probability Types of probability Empirical probability

Objective probability
range from negative infinity to positive infinity Characteristics
Priori probability
Covariance of portfolio return 

Formula
using probability function
Odds for of a to b 1:9
Odds for vs Odds against
Odds against of a to b
9:1
Correlation Portfolio returns Application of probability 
R3: Probability concepts Unconditional probability P(B) – also known as marginal probability of B
rules

P(A│B) – Probability of an event A given event B

Conditional probability
Formula
P(AB) = P(A|B) * P(B)
Conditional, unconditional 
Variance probability and total 
probability rule

Addition rule

Bayes' formula

Probability rule
Multiplication rule

Factorial

2 scenarios
Labeling problems
(multinomial formula)

Accounting principle

Total probability rule

Combination
(binomial formula)

n scenarios

Permutation