This blog is an extension of our blog on CFA Webinar on Fixed Income and Equity.

Round five of the CFA Webinar Question Answer sessions! This will aid your CFA prep in more ways than one. Find below a recording of the discussion on CFA Quants.

The answers to the questions are given right here as well.

Find here a brief summary of some of the most important points of CFA Quants:

What is the difference between Z- score and Z-test statistic? I came across a z-score formula: x-u/std deviation z test statistic: x-u/std error.â€

â€œZ score â€“ It tells us whether a particular score is equal to the mean or below the mean or above the mean. It also tells us how the particular score is away from the mean.

Z test â€“ This is used to comparing the means of two population whether you know sample standard deviation or not but its size must be greater than 30.

If we have n assets and we have to calculate the variance of portfolio,
how do we go about it? Since we have a lesser number of equations, the summation of weight = 1.

â€œSure, it will if you are providing the weights to the assets in proportion to 1. And For finding out the variance of portfolio, you always need to follow this one E(R) = w1R1 + w2Rq + …+ wnRn……. â€œ

The Bayes Formula is very confusing. Will the tree diagram work for all types of problems?â€

â€œYes. To solve the Bayeâ€™s Theorem you can make a tree diagram to make it easy. â€œ

When do we use p-value in hypothesis testing?â€

â€œP value is a way to reject or accept hypotheses. This is of smallest level significance.â€