# Binomial distribution – Excel Template

Binomial events represent a sequence of identical Bernoulli events. We use the letter “B” to express a Binomial distribution, followed by the number of trials and the probability of success in each one.

Suppose that you bought a single stock of General Motors. Historically, there is a 60% chance that the price of your stock will go up on any given day (that’s when the closing price is higher than the opening price), and a 40% chance it will drop.

With the probability distribution function, we can calculate the likelihood of the stock price increasing 3 times during the 5-work-day week. If we wish to use the probability distribution formula, we need to plug in 3 for “y”, 5 for “n”, and 0.6 for “p”.

Other related topics you might be interested to explore are Normal distribution and Uniform distribution.

This is an open-access Excel template in XLSX format that will be useful to anyone who wants to work as a Statistician, Business Intelligence Analyst, Data Scientist, Portfolio Manager, or Risk Manager.

Binomial distribution is among the topics included in the Quantitative Methods module of the CFA Level 1 Curriculum.

### 3-Statement Model – Excel Template

The P&L, Balance sheet, and Cash flow statements are three interrelated parts. The P&L feeds net income on the

### 3-Statement Model – Excel Template

The P&L, Balance sheet, and Cash flow statements are three interrelated parts. The P&L feeds net income on the liabilities and equity side of the Balance sheet. At the same time, we obtain Cash (an asset) by summing the bottom-line result of the Cash flow statement with previous year...

### Cash Flow – Excel Template

The cash flow statement shows how a company generated and spent cash throughout a given timeframe. An important truth

### Cash Flow – Excel Template

The cash flow statement shows how a company generated and spent cash throughout a given timeframe. An important truth that is frequently neglected by inexperienced business owners is that profit does not equal cash. Every business owner and manager needs to have a clear idea of the cash flows...

### Balance Sheet – Excel Template

If the P&L statement shows how profitable a company was over a given timeframe, we can say that the

### Balance Sheet – Excel Template

If the P&L statement shows how profitable a company was over a given timeframe, we can say that the Balance sheet is like a momentary picture of the firm’s condition at the time of preparation. The Balance sheet shows what a company owns (assets) and what it owes (liabilities...