4 Comments
 
Hugh Myron

Addition, subtraction, multiplication, and division are all good to know. Sometimes you'll need to put things in parenthesis or use exponents too.

Why did this response get MS? It seems about right. It's not like you use linear algebra and jump diffusion models in private equity.
 

I gave it an SB to even the score. 99% of PE math is the four basic operators. Occasionally you'll have to google a formula (like predicting inv/ar/ap from days, or remembering how to calc CAGR, etc), but the math of it isn't particularly difficult.

I will say that it's good to have a college level understanding of statistics, if only because it helps you interpret data in an intellectually honest way.

 

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