required rate of return

discount rate

opportunity cost

Nominal interest rate = Nominal risk-free interest rate Risk Premium

population & sample

measurement scales measurement scales

mean mean

Median and Mode Median&Mode

Quantile

measures

Chebyshev's Inquality

Coefficient of Variation Coefficient of variation

sharp ratio

Skewness

kurtosis

Mutually exclusive events Mutually exclusive events (cannot occur at the same time)

Exhaustive events Traverse events, complementary, activities cover all possible results

Independent events independent events

Dependent events Dependent events

Empirical probability Empirical probability (the past predicts the future)

Priori probability prior probability (pushing past)

Subjective probability Subjective probability (I think...)

Cov(X,Y) = E[(X -EX) (Y - EY)]

X~B(n,p)

Bernoulli random variable Bernoulli random variable

Expected value for binomial random variable = np

Variance for binomial random variable = np(1-p)

Properties

Standardization

Lognormal Distribution

Continuous Uniform Distribution

Students T-distribution

Shortfall Risk & Safety-first Ratio

Simulation

Simple random sampling Simple random sampling

Stratified random sampling stratified sampling

Data-mining bias data mining

Sample selection bias sample selection bias

Survivorship bias Survivorship bias

Look-ahead bias

Time-period bias time interval bias

Properties of an Estimator The good properties of an estimator

premise and conclusion

Standard Error

Point Estimate

Interval Estimate

Steps of Hypothesis Testing

Null hypothesis & Alternative Hypothesis alternative hypothesis

Key Concepts in Hypothesis Testing

Two-tailed Test vs One-tailed Test

Type I error: Rejection

Type II error: pseudo error

Single Mean

Other Situations

Parametric Tests vs. Nonparametric Tests Parametric Tests vs. Nonparametric Tests