The Basics of Probability Distributions

The Basics of Probability Distributions

In financial markets the concern is with earning returns. Although it is unknown what the actual returns will be, probability distributions allows investors to potentially quantify the various outcomes. In this first video of the series, Abdulla covers the very basics of probability distributions and constructs a simple example.
Overview

Probability distributions can be used to predict an outcome for any type of experiment. The basics include a discussion of variables, setting up an experiment and recording results.

Key learning objectives:

  • Learn the beginning stages of setting up a probability distribution

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Summary
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Expert
Abdulla Javeri

Abdulla Javeri

Abdulla’s career in the financial markets started in 1990 when he entered the trading floor of the London International Financial Futures Exchange, LIFFE, and qualified as a pit trader in equity and equity index options. In 1996, Abdulla became a trainer for regulatory qualifications and then for non-exam courses, primarily covering all major financial products.

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