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2012 CFA Notes Level 2(SAMPLE) by T.SMITH Copyright 2010 T.SMITH Smashwords Edition Books are Available at http://about.

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HOW TO PASS THE CFA EXAMS AFTER STUDYING FOR TWO WEEKS WITHOUT ANXIETY ETHICAL AND PROFESSIONAL STANDARDS
1: Code of Ethics and Standards of Professional Conduct 2: Guidance for Standards IVII 3: CFA Institute Soft Dollar Standards 4: CFA Institute Research Objectivity Standards 5: The Glenarm Company 6: Preston Partners 7: Super Selection 8: Trade Allocation: Fair Dealing and Disclosure 9: Changing Investment Objectives 10: Prudence in Perspective

QUANTITATIVE METHODS FOR VALUATION


11: Correlation and Regression 12: Multiple Regression and Issues in Regression Analysis 13: Time-Series Analysis

ECONOMICS FOR VALUATION


14: Economic Growth 15: Regulation and Antitrust Policy in a Globalized Economy 16: Trading with the World 17: Currency Exchange Rates 18: Foreign Exchange Parity Relations 19: Measuring Economic Activity

FINANCIAL REPORTING AND ANALYSIS:


20: Inventories: Implications for Financial Statements & Ratios 21: Long-lived Assets: Implications for Financial Statements & Ratios 22: Intercorporate Investments 23: Employee Compensation: Post-Employment & Share-Based 24: Multinational Operations 25: The Lessons We Learn 26: Evaluating Financial Reporting Quality 27: Integration of Financial Statement Analysis Techniques

CORPORATE FINANCE
28: Capital Budgeting 29: Capital Structure 30: Dividends and Share Repurchases: Analysis 31: Corporate Governance 32: Mergers and Acquisitions

EQUITY VALUATION:
33: A Note on Asset Valuation

34: Equity Valuation: Applications and Processes 35: Return Concepts 36: The Five Competitive Forces That Shape Strategy 37: Industry Analysis 38: Valuation in Emerging Markets 39: Discounted Dividend Valuation

EQUITY INVESTMENTS:
40: Free Cash Flow Valuation 41: Market-Based Valuation: Price & Enterprise Value Multiples 42: Residual Income Valuation 43: Private Company Valuation

ALTERNATIVE INVESTMENTS
44: Investment Analysis 45: Income Property Analysis and Appraisal 46: Private Equity Valuation A Note on Valuation of Venture Capital Deals 47: Investing in Hedge Funds: A Survey

FIXED INCOME:
48: General Principles of Credit Analysis 49: Term Structure and Volatility of Interest Rates 50: Valuing Bonds with Embedded Options 51: Mortgage-Backed Sector of the Bond Market 52: Asset-Backed Sector of the Bond Market 53: Valuing Mortgage-Backed and Asset-Backed Securities

DERIVATIVE INVESTMENTS:
54: Forward Markets and Contracts 55: Futures Markets and Contracts 56: Option Markets and Contracts 57: Swap Markets and Contracts 58: Interest Rate Derivative Instruments 59: Using Credit Derivatives to Enhance Return and Manage Risk

PORTFOLIO MANAGEMENT:
60: Portfolio Concepts 61: A Note on Harry M. Markowitzs Market Efficiency: 62: International Asset Pricing 63: The Theory of Active Portfolio Management 64: Portfolio Management Process & the Investment Policy Statement

The author successfully passed the CFA (Chartered Financial Analyst), CPA (Certified Public Accountant), and FRM (Financial Risk Manager) exams "WITHOUT ANY RETAKES". Based on a true experience, the author also wrote how to pass the CFA exams after studying for two weeks.

CFA 2012 Study Notes 2011 All rights reserved. These materials may not be copied without written permission from the author. The unauthorized duplication of these notes is a violation of global copyright laws and the CFA Institute Code of Ethics. Required CFA Institute disclaimer: CFA and Chartered Financial Analyst are trademarks owned by CFA Institute. CFA Institute (formerly the Association for Investment Management and Research) does not endorse, promote, review, or warrant the accuracy of the products or services.

ETHICAL AND PROFESSIONAL STANDARDS 1: Code of Ethics and Standards of Professional Conduct
a. describe the six components of the Code of Ethics and the seven Standards of Professional Conduct; b. explain the ethical responsibilities required by the Code and Standards, including the multiple sub-sections of each standard. The six components of the Code of Ethics. Members and Candidates must: Act with integrity, competence, diligence, respect, and in an ethical manner with the public, clients, prospective clients, employers, employees, colleagues in the investment profession, and other participants in the global capital markets. Place the integrity of the investment profession and the interests of clients above their own personal interests. Use reasonable care and exercise independent professional judgment when conducting investment analysis, making investment recommendations, taking investment actions, and engaging in other professional activities. Practice and encourage others to practice in a professional and ethical manner that will reflect credit on themselves and the profession. Promote the integrity of, and uphold the rules governing, capital markets. Maintain and improve their professional competence and strive to maintain and improve the competence of other investment professionals. The Code of Ethics establishes the framework for ethical decision making in the investment profession. The seven Standards of Professional Conduct. I. PROFESSIONALISM A. Knowledge of the Law. Members and candidates must understand and comply with all applicable laws, rules, and regulations (including the CFA Institute Code of Ethics and Standards of Professional Conduct) of any government, regulatory organization, licensing agency, or professional association governing their professional activities. In the event of conflict, members and candidates must comply with the more strict law, rule, or regulation. Members and candidates must not knowingly participate or assist in and must dissociate from any violation of such laws, rules, or regulations.