background image

CFALA

 

Review:

 

Tips

 

for

 

using

 

the

 

TI

 

calculator

2/9/2015

By

 

David

 

Cary

18

Factorial,

 

Combinations,

and

 

Permutations

N

 

Factorial

 

(N!)

 

is

 

when

 

you

 

multiply

 

N

 

x

 

(N

1)

 

x

 

(N

2)

 

x

 

 

x

 

2

 

x

 

1

 

=

 

N!

There

 

is

 

a

 

built

 

in

 

function

 

in

 

your

 

calculator

 

to

 

do

 

this:

[2

nd

][x]

 

=

 

[x!],

 

To

 

get

 

5!:

 

5

 

[2

nd

][x!]

 

=

 

120

This

 

can

 

be

 

useful

 

for

 

combination

 

calculations:

To

 

select

 

a

 

subset

 

of

 

3

 

items

 

out

 

of

 

5:

 

5

C

3

=

 

5!

 

/

 

((5

3!)(3!))

 

=

 

10

Your

 

TI

 

has

 

a

 

built

 

in

 

function

 

for

 

this:

 

[2

nd

][+]

 

=

 

[

n

C

r

]

5

C

3

=

 

5

 

[2

nd

][

n

C

r

]

 

3

 

[=]

 

10

CFA Society Los Angeles

35

Factorial,

 

Combinations,

and

 

Permutations

This

 

can

 

also

 

be

 

useful

 

for

 

permutation

 

calculations:

To

 

select

 

and

 

rank

 

a

 

subset

 

of

 

3

 

items

 

out

 

of

 

5:

 

5

P

3

=

 

5!

 

/

 

(5

3!)

 

=

 

60

Your

 

TI

 

has

 

a

 

built

 

in

 

function

 

for

 

this:

 

[2

nd

][

]

 

=

 

[

n

P

r

]

5

P

3

=

 

5

 

[2

nd

][

n

P

r

]

 

3

 

[=]

 

60

CFA Society Los Angeles

36

Summary of Contents for TI BA II Plus

Page 1: ...CFA Spring 2015 dcary dcary com helpful if you put CFA Review in subject line Using the TI BA2 Notes by David Cary These should help you be more efficient with your calculator For some of the topics I...

Page 2: ...geles 4 BASIC SETUP To set the number of decimal places 4 Keys Display Comments 2nd FORMAT DEC 2 00 Current setting 4 ENTER DEC 4 0000 New setting 6 ENTER DEC 6 000000 New setting etc CE C 6 000000 Re...

Page 3: ...e TI BAII into AOS Algebraic Operating System 5 CFA Society Los Angeles 6 USING CHN OR AOS The default setting in your calculator is probably Chn which stands for chaining Calculations are done in the...

Page 4: ...h I stay with AOS 7 CFA Society Los Angeles 8 USING MEMORIES Your calculator has 10 easily accessible memories 0 to 9 You can store numbers in a memory by pressing STO n where n in the number of the m...

Page 5: ...MEANS AND COVARIANCES OF TWO ASSET PORTFOLIO Example from D Cary s Level I CFALA review lecture notes SS 2 Reading 8 The question is to find the expected return rp and the variance and standard devia...

Page 6: ...d deviations to get covariance for the third part 11 CALCULATING MEANS AND COVARIANCES OF TWO ASSET PORTFOLIO 1 2 w 75 25 r 20 12 var 625 196 Covar 120 CFA Society Los Angeles 12 2 USING PARENTHESES C...

Page 7: ...s 13 CALCULATING MEANS AND COVARIANCES OF TWO ASSET PORTFOLIO 1 2 w 75 25 r 20 12 var 625 196 Covar 120 CFA Society Los Angeles 14 WHICH METHOD TO USE I like AOS For the simpler calculations you can d...

Page 8: ...each period Note The BEG key is above the PMT key Calculator Hints BEG mode CFA Society Los Angeles Calculator Hints of Pmts Yr While I prefer to adjust N and I directly the TI can be set to do the c...

Page 9: ...cash flows 17 CFA Society Los Angeles 18 PV OF UNEVEN CASHFLOWS Key Strokes Explanation Display CF 2nd CLR WORK Clear CF Registers CF0 0 00000 0 Enter Initial Outflow 0 CF0 0 00000 100 Enter Enter CF...

Page 10: ...s Angeles 20 NPV IRR OF UNEVEN CASH FLOWS Key Strokes Explanation Display CF 2nd CLR WORK Clear CF Registers CF0 0 00 1000 Enter Initial Outflow CF0 1000 00 100 Enter Enter CF1 C01 100 00 200 Enter En...

Page 11: ...hen you find an error by using the enter key For example assume you entered 10 for CF0 when it should have been 1000 CF Shows CFo Shows C 1 Shows F 1 Shows C 2 Etc Key Shows CF CFo 10 1000 ENTER CFo 1...

Page 12: ...inputted values by going into DATA mode and then using up or down arrows TI BAII and Pro On Screen 2ND Data X01 0 0000 Opens Input 2ND CLR WORK X01 0 0000 Clears Memories 13 5 ENTER X01 13 5000 Enter...

Page 13: ...0 Mean r 4 90 StDev s 22 99 3 Coefficient of Variation s r CV 22 99 4 90 4 69 4 Sharpe r rf s 4 90 3 0 22 99 0 083 6 Geometric and Harmonic Mean Using the Statistics Function for the calculation is af...

Page 14: ...86 Converts to Log Enters first value 3 LN ENTER X02 1 0986 Converts to Log Enters second value 4 LN ENTER X03 1 3863 Converts to Log Enters third value 6 LN ENTER X04 1 7918 Converts to Log Enters fo...

Page 15: ...5 0000 Number of observations x 0 2258 Gets average of reciprocals 1 x 4 4295 The reciprocal of the average reciprocal The Answer Data 3 3 4 6 22 CFA Society Los Angeles 29 Viewing and or Correcting...

Page 16: ...es will be stable and if so there is a 60 probability that EPS 2 20 and a 40 probability that EPS 2 00 Note Actual calculator steps included following next slide 31 Example from Level I SS 2 Reading 8...

Page 17: ...faster and simpler I include the 1 V method both as an alternative and so you can see it being used CFA Society Los Angeles 34 34 Keys Using STAT Display 2nd DATA 2nd CLR WORK X 1 0 0000 Clear Memori...

Page 18: ...d x 120 This can be useful for combination calculations To select a subset of 3 items out of 5 5C3 5 5 3 3 10 Your TI has a built in function for this 2nd nCr 5C3 5 2nd nCr 3 10 CFA Society Los Angele...

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