Quantitative Methods

The second subject CFA Level-1 is Quantitative Methods, with the weightage of 10%. This subject covers Statistics, Econometrics & Probability. It deals with the analysis of data for futuristic models. It also covers TVM, or 'Time Value of Money', which includes interest rates, calculation of present value & future value of an asset, etc.

The other major topic within Quantitative Methods is Probability Distribution. Distribution is broadly divided into two categories - parametric & non-parametric.

Parametric Distribution relies on assumptions to create models.
Distributions made without assumptions get called as Non-Parametric Distributions. For example: stock market data, that works on historical & publicly available information.

Then come Statistics & Sampling. This helps the student be prepared to postulate hypothesis & accept or reject the same. In addition, there are also lessons on regression & correlation too!

Quantitative Methods, as a subject, also covers three more topics of Analysis:

Time Series Analysis - Using a sequence of time-dependent observations to help identify the nature of the phenomenon
Simulation Analysis - Modeling, based on certain assumptions and IIDs (independent & identically distributed random variables)
Technical Analysis - The process of analyzing prices based on some market indicators!