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So this week, we'll be covering a review 
of probability theory and random 

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variables. 
We'll start our review by looking at, 

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single variables and univariate 
distributions. 

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we'll define, what a random variable is, 
and we'll define, distribution functions 

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for discrete and continuous random 
variables. 

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we'll pay, particular attention to the 
normal distribution, and its use in 

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financial modeling. 
we'll also be able to define certain risk 

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concepts that are based on a quantiles of 
a distribution, such as value at risk. 

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After univariate random variables, we'll 
move in to bivariate and multivariate 

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random variables and emphasize the 
statistical concepts of dependence. 

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We'll focus on, correlation and 
covariance which are linear measures of 

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dependence and are used very widely in, 
in finance. 

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we'll define multivariate and bivariate 
distributions with an emphasis on the 

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bivariate and multivariate normal 
distribution, and then we'll end the 

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review by looking at linear combinations 
of random variables, and how those 

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applies to the modeling of asset returns.