CFA(2)

1.SS2  Quantitative Methods

• The Time Value of Money(货币的时间价值)
• Discounted Cash Flow Applications（现金流折现）
• Statistical Concept and Market Return（统计概念和市场回报率）
• Probability Concepts（概率概念）

2. Using a Financial Calculator

• N=Number of compounding periods
• 1/Y=Interest rate per compounding period
• PV=Present Value
• FV=Future Value
• PMT=Annuity payments,or constant periodic cash flow.
• CPT=Compute

3. Time Line

Use time line to solve a cash flow problem

----Cash receipts——“+”

---Cash payments——“-”

4. Required Rate of Return

Equilibrium interest rates(均衡利率) are the required rate of return for a particular investment, in the sense that the market rate of return is the return

that investors and savers require to get them to willingly lend their funds.

5. Discount Rate(折现率)

•  Interest rates are also referred to as discount rates and, in fact, the terms are often used interchangeably.
• If an individual can borrow funds at an interest rate of 10%, then that individual should discount payments to be made in the
  future at that rate in order to get their equivalent value in current dollars or other currency.