- CFA Exams
- 2026 Level I
- Topic 1. Quantitative Methods
- Learning Module 4. Probability Trees and Conditional Expectations
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Learning Outcome Statements PDF Download
| 1. Expected Value and Variance calculate expected values, variances, and standard deviations and demonstrate their application to investment problems | |
| 2. Probability Trees and Conditional Expectations formulate an investment problem as a probability tree and explain the use of conditional expectations in investment application | |
| 3. Bayes' Formula and Updating Probability Estimates calculate and interpret an updated probability in an investment setting using Bayes' formula |
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