Distributions

[intuit2k2]

David: do we have to measure the characteristics of all the distributions that the core text discusses. Which distributions mean, variance and properties do you think we have to know cold to do well.

 

[David Harper CFA FRM]

The Rachev reading added a bunch of distributions, most of which I doubt will present on the exam. This is just my opinion, okay, but I would emphasize:

* the discrete distributions: binomial, Poisson, Bernoulli. Why? they are easier to test with only a calculator.
* Plus the normal (obviously!)
* After that: lognormal and exponential (why? common)
* Finally, the "sampling distributions:" student's t plus familiarity with chi^2 and F
* And L2: I would expect something on EVT
(Finally, if you see LGD/recovery, guess beta)

Hope that helps, David