Markets are interlinked.  There are strong correlations between prices in equity markets, fixed income markets, commodity markets, real estate markets, and so on.  (It’s too much to say, for example, that stock prices are affected by bond prices – which is how the curriculum states it – which imputes a cause-and-effect relationship when the correlation […]

This article is for members only.  You can become a member now by purchasing a

CFA® Level I Quantitative Methods Membership, CFA® Level I Membership

This will give you access to this and all other articles at that membership level.