Backwardation and Contango：》》》戳：免费领取FRM各科视频讲义+历年真题+21年原版书（PDF版）
• Backwardation refers to a situation where the futures price is below the
spot price. For this to occur, there must be a significant benefit to holding
• Contango refers to a situation where the futures price is above the spot
price. If there are no benefits to holding the asset (e.g., dividends, coupons,
or convenience yield), contango will occur because the futures price will be
greater than the spot price.
Capital Asset Pricing Model (CAPM)：
In equilibrium, all investors hold a portfolio of risky assets that has the
same weights as the market portfolio. The CAPM is expressed in the equation of
the security market line (SML). For any single security or portfolio of
securities z, the expected return in equilibrium is
E(Rj) = Rp + betaj[E(Rj v j)—Rp]
Unconditional probability (marginal probability) is the probability of an
event occurring. Conditional probability, P(A | B), is the probability of an
event A occurring given that event B has occurred. 【资料下载】点击下载融跃教育FRM考试公式表
Linear Regression Assumptions：
• The expected value of the error term, conditional on the independent
variable, is zero.
• All (X, Y) observations are independent and identically distributed
• It is unlikely that large outliers will be observed in the data.