Here is the Chartered Financial Analyst... Candidate Body of Knowledge, from the www.aimr.

org website: The CFA curriculum is organized into four major areas: ethical and professional standards, tools and inputs for investment valuation and management (investment tools), asset valuation, and portfolio management. The Level I study program emphasizes tools and inputs and includes an introduction to asset valuation and portfolio management techniques. The Level II study program emphasizes asset valuation and includes applications of the tools and inputs (including economics, accounting, and quantitative techniques) in asset valuation. The Level III study program emphasizes portfolio management and includes strategies for applying the tools and inputs in managing equity and fixed-income securities. ------------------------------------Candidate Body of Knowledge Outline ------------------------------------Following is an outline of the CBOK covered in the CFA Program. Ethical and Professional Standards Professional Standards of Practice AIMR Code of Ethics AIMR Standards of Professional Conduct Ethical conduct and professional obligations Knowledge and compliance with governing laws and regulations Responsibilities (e.g., clients, research reports) Obligations to disclose material information (e.g., compensation, conflicts of interest) Fiduciary duties Corporate governance "Prudent Person Rule" and "Prudent Expert Rule" General business ethics and obligations Professional misconduct Global (cross-national) differences Extent and implications Laws and regulations Customs and attitudes Quantitative Methods Time Value of Money Basic concepts (e.g., present value, future value, discounting) Mechanics Discounted cash flow analysis Basic statistical concepts Data collection and presentation (e.g., tables, charts, graphs) Frequency distributions (e.g., histograms, stem and leaf plots) Descriptive statistics

Shape Probability theory and concepts Sample and event space Conditional probability Joint probability and marginal probability Bayes' Rule Random variables Discrete Continuous Probability distributions Discrete (e.g.g.. uniform.. exponential) Sampling theory and distributions Sampling from a population Mean square error techniques Sampling distributions Central Limit Theorem Law of Large Numbers Statistical inference Estimation Hypothesis testing Regression and Correlation Assumptions Parameter estimation Statistical measures Statistical tests Confidence intervals Qualitative or dummy variables Model validation Other considerations (e. binomial) Continuous (e. economic) Multivariate techniques Factor and principal component analysis Cluster analysis Discriminant analysis Economics . security market. normal.g. heteroskedasticity) Time-Series Analysis and Forecasting Trend Time-series models Smoothing models Model comparison Stationarity Performance indicators Theory and construction Domestic and international security market indicators Types of indicators (e...g.

other) . cyclicals vs.g.S. and standards U.S. generally accepted accounting principles (GAAP) Non-U. nationalization. aging... conventions. noncyclicals) Treatment of currencies and asset allocation Accounting and Corporate Finance Accounting objectives.. country-specific GAAP International (International Accounting Standards) Influential organizations Process of development Enforcement and penalties Auditing Financial statements and other required disclosures Consolidation requirements Balance sheet Income statement Statement of cash flows (IAS..g.g.S. U.Microeconomics Basic model of competition Economic interdependence Concepts of demand and supply Analysis of supply and demand Government Macroeconomics Policy objectives and measures of activity Alternative macroeconomic models Consumption and investment Aggregate demand and supply Markets International financial systems Role of government in market economies International flow of funds International banking activities Perfect markets Consumption Savings Demographics (e. antitrust) Problems of imperfect information Relationship of economic activity to investment process Impact of changes in aggregate domestic economies on security markets Impact of macroeconomic factors on global security markets Factors to consider in regional (country) weighting Factors to consider in sector weightings (e. income distribution) Labor-supply decisions Production decisions Competitive equilibrium Imperfect markets Monopoly Imperfect competition Government policies (e.

g.. sunk costs. timeliness.g. debt.g. companies Foreign registrants Basics of corporate finance Forms of business organization Corporate governance issues Financial planning Capital investment decisions Investment decision criteria Cash flow projections Common pitfalls (e. time series....S. depreciation) Definitions of cash from operations Common corporate decisions using discounted cash flow analysis Project analysis and evaluation Managerial options Capital rationing . leases) Pensions Other postemployment benefits Inflation and changing prices Off-balance-sheet activities Hedging activities Intercorporate investments Segment disclosures Business combinations Foreign currency translation Other disclosure practices (e. Securities and Exchange Commission accounting and disclosure requirements U..S.g..g.S.) Statement of shareholders’ equity Management discussion and analysis Proxy statement Pro forma presentations of financial statements Specific accounting principles and practices Inventories Long-term (fixed) assets Income taxes Liabilities (e.Statement of changes in financial positions (some non-U.. environmental or cultural values) Financial information considerations (e. language) Ratio and financial analysis Common-size statements Trend statements Activity analysis Liquidity analysis Long-term debt and solvency analysis Profitability analysis Integrated ratio analysis (e. forecasts) International financial statement analysis Nonfinancial considerations (e.g.g. duPont formulation) Earnings per share Types of comparisons (e. international) U. environmental.

trading without broker intermediary) Intermediated markets and private placements ... synergy.g..Long-term financing decisions Financial leverage Capital structure Cost of capital Dividend policy Short-term financing decisions Cash conversion cycle Considerations for current asset financing policy Borrowing options Cash and liquidity management Cash Float Variations in cash flows Credit and inventory management Credit policy Inventory management Mergers and acquisitions Legal forms of acquisition Classifications (e.e. trading of exchange-listed shares over the counter) Fourth market (i. cost reductions) Costs Defensive tactics Special considerations of multinational corporations Capital budgeting Exchange-rate risk management Currency translation effects Political risk Taxes Global Markets and Instruments Characteristics of financial markets Availability of information Liquidity Transaction costs External (informational) efficiency Market structures Auction markets (call and continuous) Over-the-counter markets Intermediated markets Private markets Market organizations Primary capital markets Secondary financial markets Third market (i.e.g. horizontal) Takeover issues Tax issues Expectations from acquisition (e..

.g.e. taxes) Commercial information services Domestic stock indicators International stock indicators Options markets Instruments Kinds of options Market organization Futures markets Functions of futures Basic characteristics of futures contracts Applications Kinds of futures Regulatory issues Currency or foreign exchange markets Exchange rates Quotation (i.g. interest rate) Swap markets Types of swaps Characteristics Rationale for use of swaps ... breadth Level of privatization Accounting and auditing systems Fixed-income markets and instruments Fixed-income investments (bonds. maturity) National bond markets Eurobond market Equity markets and instruments Equity securities Equity derivatives U. collateralized mortgage obligations) Fixed-income derivatives Issuers of fixed-income securities Basic structure of fixed-income investment (e.. forward. amount of local currency required to purchase one unit of foreign currency) Market organization and costs Related markets (e.S. coupon. markets Other national markets Euroequity market Trading procedures Considerations in dual listings Other trading issues (e.Structural features of financial markets Trading mechanisms Issue and settlement procedures Custodianship Liquidity/trading volume Market capitalization Costs Depth vs.g.

present value of future interest and principal payments) Preferred stock (i.e.. present value of a perpetuity) Common stock Futures Options Analysis of Fixed-Income Investments Term-structure analysis Characterizations of the term structure Theories Term structure (market risk) Term-structure models Measure of volatility exposure Yield-spread analysis Types of spreads .. Markowitz) Basic assumptions of investor behavior Asset pricing theories and models Capital asset pricing model (CAPM) International CAPM Arbitrage pricing theory (APT) International APT Required input variables for valuation models Expected return Required rate of return Expected growth rate of dividends Basic investment valuation models Bond (i.g. taxes) Investment trends Valuation and Investment Theory Basic concepts Return Risk Efficient market theory Assumptions for informationally efficient market Alternative hypotheses Violations of conditions in real capital markets Economically efficient market Implications of capital market efficiency Empirical tests of informational efficiency Market rationality Implications for approaches to financial analysis Portfolio theory Early work (e.e..Real estate markets Kinds of investments Kinds of properties Private-market structure Issues in international investment (e. monitoring..g.

. callable bonds) Instruments Contingent claims analysis Option-pricing methodology Option-adjusted yield-spread methodology Analysis of convertible or exchangeable debt Provisions Investment characteristics Valuation variables Risks Option-pricing approach Analysis of mortgage-backed securities Types of mortgages Types of instruments Evaluation issues Cash flows Risk analysis Prepayment benchmark conventions Valuation methodologies Analysis of asset-backed securities .g. business cycle) Sources of risk Interest rate risk Reinvestment risk Call risk Credit or default risk Maturity risk (yield-curve risk) Liquidity risk Exchange-rate risk Volatility risk Inflation or purchasing power risk Political risk Event risk Sector or industry risk Return or yield measures Current yield Yield to maturity Yield to call Horizon (total) return Promised vs.. expected yield Yield on floating-rate instruments Bond-equivalent yield Option-adjusted yield Analysis of option-free bonds Basic price–yield relationship Reasons for bond price changes Price volatility Measures of price volatility Convexity Analysis of bonds with embedded options (e.Determinants of relative value (e.g.

and associated derivatives Compound options Analysis of interest rate swaps Terminology Alternative definitions of the Treasury yield curve Characteristics of generic swap Deviations from generic swap Valuation methodology Issues in analysis of international bonds Characterization of appropriate term structure Risk analysis Analysis of Equity Investments Fundamental analysis Assumptions Implications of efficient market hypothesis Analysis of stock market series (S&P 500 Index. floors. Financial Times 100 Index) Country analysis Industry analysis Company analysis Technical analysis Definition and assumptions Comparison with fundamental analysis Indicators and rules Special applications of fundamental analysis Analysis of distressed and bankrupt companies Analysis and appraisal of closely held companies and inactively traded securities Analysis of venture capital investments Analysis of equity options Common stock options Stock index options .Collateral Credit analysis Characteristics of cash flows Credit analysis for corporate bonds Industry analysis Financial analysis Bond covenants Credit ratings Analysis of high-yield securities Bankruptcy prediction Analysis of distressed securities Analysis of fixed-income derivatives Interest rate futures contracts Interest rate options Custom interest rate agreements Interest rate swaps Interest rate caps.

Stock index futures Analysis of warrants Comparison with call option Modification of option-pricing models for additional shares issued Analysis of Alternative Investments Analysis of real estate investments Forms of commercial/multifamily real estate investment Analysis requirements Real estate appraisal concepts Valuation approaches Analysis of investment companies Basic organization characteristics Characteristics of closed-end investment companies Characteristics of open-end investment companies Analysis of currency or foreign exchange investments Determinants of exchange-rate levels Cash market Currency futures Forward contracts Options Portfolio Management Portfolio management policies for individual investors Demographics Objectives Constraints Requirements of effective policy Portfolio management policies for institutional investors Objectives Constraints Pensions and employee benefit funds Endowment funds Insurance companies and commercial banks Capital market expectations Key macroeconomic factors affecting security pricing Development of expectations Macro valuation model Elements of discounting process Asset allocation Assessment of opportunities Determination of asset mix Selection approaches Issues in multiple-manager environments General portfolio construction and revision Inputs to portfolio construction and revision Diversification issues .

geometric.. dollar weighted) Risk adjustment Annualization method Performance attribution analysis Identification of impact of portfolio management decisions Measurement of strategic policy effect: benchmark portfolios Measurement of allocation effect Measurement of selection effect Attribution comparison options Benchmarks for real estate portfolios Other problematic portfolios (e. inactively traded) Evaluation of performance fees AIMR Performance Presentation Standards™ .g. arithmetic..g.Portfolio monitoring and rebalancing Implementation issues Fixed-income portfolio management strategies Active management Passive management Hybrid strategies (dedication) Derivative strategies Equity portfolio management strategies Active management Passive management Hybrid/combined strategies Hedging strategies using derivatives Real estate portfolio management Traditional types of diversification Alternative approaches to definition of location Analysis of critical attributes Property-type attractiveness indexes Portfolio restructuring Hedging and hedging strategies Fundamentals Estimation of hedge ratio Results of hedge Management of hedge Criteria for hedge accounting Types of derivatives used Types of strategies Tax considerations Performance measurement Fundamental issues Return measures (e.

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