heat map differentiates high values from low values and reflects the correlation between

variables

A bubble line chart is a version of a line chart where data points are replaced with varying-sized
bubbles to represent a third dimension of the data. A line chart is very effective at visualizing
trends in three or more variables over time

scatterplot matrix is a useful tool for organizing scatterplots between pairs of variables, making it
easy to inspect all pairwise relationships in one combined visua

FOR MEDIAN: ARRANGE IN ASCENDING ORDER FIRST THEN TAKE MIDDLE

OBSERVATION IF THERE IS EVEN NUMBER OBSERVATION THEN TAKE N/2 AND N+2/2
OBSERVATION AND THEN SUM OF THEM AND DIVIDE BY 2

The more disperse a distribution, the greater the difference between the arithmetic mean and
the geometric mean.

HM<GM<AM THE HIGHER THE DISPERSION THE MORE AM GREATER THAN GM AND
HM

The distribution is thin-tailed relative to the normal distribution because the excess kurtosis is
less than zero.

The excess kurtosis is positive, indicating that the distribution is “fat-tailed”; therefore, there is
more probability in the tails of the distribution relative to the normal distribution.

HM CALCULATION: OTHER THAN PRICE, RATE MUST BE DIVIDE BY 100 AND PLUS ONE

THEN AFTER DIVIDE IT FROM 1 LIKE 1/1.045 FOR 4.5%

the joint probability of A and B is P(AB) = P(A | B)P(B). If the two criteria are not independent,
and if P(B) = 0.50, then the contingent probability of P(A | B) is greater than 0.50. So the joint
probability of P(AB) = P(A | B)P(B) is greater than 0.25.

an increasingly positive correlation indicates an increasingly strong positive linear relationship

and fewer diversification benefits.

Asset classes with negative correlations can be used to achieve a measure of

diversification

The internal rate of return is the discount rate that makes net present value equal to zero

FV = PVerN = 2,000 × e0.06 × 4 = £2,542.49 ~ £2,542

Investors should be attracted by a positive skew (distribution skewed to the right) because the
mean return falls above the median. Relative to the mean return, positive skew amounts to a
limited, though frequent, downside compared with a somewhat unlimited, but less frequent,
upside.
Most equity return distributions are best described as being leptokurtic (i.e., more peaked than
normal).