Download Wiley Study Guide for 2015 Level I CFA Exam: Complete Set PDF

TitleWiley Study Guide for 2015 Level I CFA Exam: Complete Set
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Table of Contents
                            Cover
Volume 1
	Title Page
	Copyright Page
	Contents
	Study Session 1: Ethical and Professional Standards
		Reading 1: Code of Ethics and Standards of Professional Conduct
			LESSON 1: CODE OF ETHICS AND STANDARDS OF PROFESSIONAL CONDUCT
				CFA Institute Professional Conduct Program
				Adoption of the Code and Standards
				Why Ethics Matters
			CFA INSTITUTE CODE OF ETHICS AND STANDARDS OF PROFESSIONAL CONDUCT
				Preamble
				The Code of Ethics
				Standards of Professional Conduct
		Reading 2: Guidance for Standards I‐VII
			LESSON 1: STANDARD I: PROFESSIONALISM
				Standard I(A): Knowledge of the Law
				Standard I(B) Independence and Objectivity
				Standard I(C) Misrepresentation
				Standard I(D) Misconduct
			LESSON 2: STANDARD II: INTEGRITY OF CAPITAL MARKETS
				Standard II(A) Material Nonpublic Information
				Standard II(B) Market Manipulation
			LESSON 3: STANDARD III: DUTIES TO CLIENTS
				Standard III(A) Loyalty, Prudence, and Care
				Standard III(B) Fair Dealing
				Standard III(C) Suitability
				Standard III(D) Performance Presentation
				Standard III(E) Preservation of Confidentiality
			LESSON 4: STANDARD IV: DUTIES TO EMPLOTERS
				Standard IV(A) Loyalty
				Standard IV(B) Additional Compensation Arrangements
				Standard IV(C) Responsibilities of Supervisors
			LESSON 5: STANDARD V: INVESTMENT ANALYSIS, RECOMMENDATIONS AND ACTION
				Standard V(A) Diligence and Reasonable Basis
				Standard V(B) Communication with Clients and Prospective Clients
				Standard V(C) Record Retention
			LESSON 6: STANDARD VI: CONFLICTS OF INTEREST
				Standard VI(A) Disclosure of Conflicts
				Standard VI(B) Priority of Transactions
				Standard VI(C) Referral Fees
			LESSON 7: STANDARD VII: RESPONSIBILITIES AS A CFA INSTITUTE MEMBER OR CFA CANDIDATE
				Standard VII(A) Conduct as Participants in CFA Institute Programs
				Standard VII(B) Reference to CFA Institute, the CFA Designation, and the CFA Program
		Reading 3: Introduction to the Global Investment Performance Standards (GIPS®)
			LESSON 1: INTRODUCTION TO THE GLOBAL INVESTMENT PERFORMANCE STANDARDS (GIPS)
				The Structure of the GIPS Standards
		Reading 4: Global Investment Performance Standards (GIPS®)
			LESSON 1: GLOBAL INVESTMENT PERFORMANCE STANDARDS (GIPS)
				Fundamentals of Compliance
	Study Session 2: Quantitative Methods—Basic Concepts
		Reading 5: The Time Value of Money
			LESSON 1: INTRODUCTION, INTEREST RATES, FUTURE VALUE AND PRESNT VALUE
				The Financial Calculator
				Timelines
				Sign Convention
				The Future Value of a Single Cash Flow
				The Present Value of a Single Cash Flow
				FV and PV of a Series of Cash Flows
				Present Value of a Perpetuity
				Present and Future Value of Unequal Cash Flows
			LESSON 2: STATED ANNUAL INTEREST RATES, COMPOUNDING FREQUENCY, EFFECTIVE ANNUAL RATES AND ILLUSTRATIONS OF TVM PROBLEMS
				The Frequency of Compounding
				Loan Payments and Amortization
				The Cash Flow Additivity Principle
		Reading 6: Discounted Cash Flow Applications
			LESSON 1: NET PRESENT VALUE AND INTERNAL RATE OF RETURN
				Internal Rate of Return (IRR)
			LESSON 2: PORTFOLIO RETURN MEASUREMENT
			LESSON 3: MONEY MARKET YIELDS
				Market Yields
				Bond Equivalent Yield
		Reading 7: Statistical Concepts and Market Returns
			LESSON 1: FUNDAMENTAL CONCEPTS, FREQUENCY DISTRIBUTIONS AND THE GRAPHICAL PRESENTATION OF DATA
				Histograms and Frequency Polygons
			LESSON 2: MEASURES OF CENTRAL TENDENCY, OTHER MEASURES OF LOCATION (QUANTILES) AND MEASURES OF DISPERSION
				Properties of the Arithmetic Mean
				Quantiles
				Other Concepts of the Mean
				Population Variance and Standard Deviation
				Sample Variance and Standard Deviation
				Issues with the Sharpe Ratio
			LESSON 3: SYMMETRY, SKEWNESS AND KURTOSIS IN RETURN DISTRIBUTIONS AND ARITHMETIC VERSUS GEOMETRIC MEANS
		Reading 8: Probability Concepts
			LESSON 1: PROBABILITY, EXPECTED VALUE AND VARIANCE
				Methods of Estimating Probabilities
				Profiting from Inconsistent Probabilities
				Calculating the Probability that at Least One of Two Events Will Occur
				Dependent and Independent Events
				Expected Value
				Variance and Standard Deviation
			LESSON 2: COVARIANCE AND CORRELATION AND CALCULATING PORTFOLIO EXPECTED RETURN AND VARIANCE
				Properties of Covariance
				Limitations of Covariance
				Correlation Coefficient
				Properties of the Correlation Coefficient
			LESSON 3: TOPICS IN PROBABILITY: BAYES’ FORMULA AND COUNTING RULES
				Multiplication Rule of Counting
				Labeling Problems
				Combinations
				Permutations
	Study Session 3: Quantitative Methods— Application
		Reading 9: Common Probability Distributions
			LESSON 1: DISCRETE RANDOM VARIABLES, THE DISCRETE UNIFORM DISTRIBUTION AND THE BINOMIAL DISTRIBUTION
				The Binomial Distribution
				Binomial Trees
				Skewness and the Binomial Distribution
				Tracking Error
			LESSON 2: CONTINUOUS RANDOM VARIABLES, THE CONTINUOUS UNIFORM DISTRIBUTION, THE NORMAL DISTRIBUTION AND THE LOGNORMAL DISTRIBUTION
				Calculating Probabilities Using Z-Scores
			LESSON 3: MONTE CARLO SIMULATION
				Investment Applications
				Limitations
		Reading 10: Sampling And Estimation
			LESSON 1: SAMPLING, SAMPLING ERROR, AND THE DISTRIBUTION OF THE SAMPLE MEAN
				Sampling Error
				Sampling Distribution
			LESSON 2: POINT AND INTERVAL ESTIMATES OF THE POPULATION MEAN, STUDENT’S T-DISTRIBUTION, SAMPLE SIZE AND BIASES
				Types of Biases
				Sample-Selection Bias
				Look-Ahead Bias
				Time-Period Bias
		Reading 11: Hypothesis Testing
			LESSON 1: INTRODUCTION TO HYPOTHESIS TESTING
				One-Tailed versus Two-Tailed Tests
				Rejection Rules for Two-Tailed Hypothesis Test
				Type I and Type II Errors
				Relation Between Confidence Intervals and Hypothesis Tests
			LESSON 2: HYPOTHESIS TESTS CONCERNING THE MEAN
				Hypothesis Tests Concerning the Mean
				Tests Relating to the Mean of Two Populations
				Tests for Means when Population Variances are Assumed Equal
				Tests for Means when Population Variances are Assumed Unequal
			LESSON 3: HYPOTHESIS TESTS CONCERNING THE VARIANCE AND NONPARAMETRIC INFERENCE
		Reading 12: Technical Analysis
			LESSON 1: TECHNICAL ANALYSIS: DEFINITION AND SCOPE
				Principles and Assumptions
				Technical Versus Fundamental Analysis
				Drawbacks of Technical Analysis
			LESSON 2: TECHNICAL ANALYSIS TOOLS: CHARTS, TREND AND CHART PATTERNS
				Charts
				Reversal Patterns
				Continuation Patterns
			LESSON 3: TECHNICAL ANALYSIS TOOLS: TECHNICAL INDICATORS AND CYCLES
				Price-Based Indicators
				Momentum Oscillators
				Sentiment Indicators
				Flow of Funds Indicators
				Cycles
			LESSON 4: ELLIOT WAVE THEORY AND INTERMARKET ANALYSIS
				Elliott Wave Theory
				Intermarket Analysis
Volume 2
	Title Page
	Copyright Page
	Contents
	Study Session 4: Economics— Microeconomic Analysis
		Reading 13: Demand and Supply Analysis: Introduction
			LESSON 1: DEMAND AND SUPPLY ANALYSIS: BASIC PRINCIPLES AND CONCEPTS
				Types of Markets
				The Demand Function and the Demand Curve
				Changes in Demand Versus Movements Along the Demand Curve
				The Supply Function and the Supply Curve
				Changes in Supply Versus Movements Along the Supply Curve
				Aggregating the Demand and Supply Functions
				Aggregating the Demand Function
				Aggregating the Supply Function
				Market Equilibrium
			LESSON 2: MARKET EQUILIBRIUM
				Iterating Toward Equilibrium: The Market Mechanism (See Figure 2-1)
				Auctions as a Way to Find Equilibrium Price
			LESSON 3: CONSUMER SURPLUS AND PRODUCER SURPLUS: INTRODUCTION AND APPLICATIONS
				The Demand Curve, Value (Utility), and Consumer Surplus
				Consumer Surplus
				The Supply Curve, Marginal Cost, and Producer Surplus
				Producer Surplus
				Total Surplus: Total Value (Utility) Minus Total Variable Cost
				Markets Maximize Society’s Total Surplus
				Market Intervention: Negative Impacts on Total Surplus
				Price Ceilings
				Price Floors
				Taxes
				Per-Unit Tax on Sellers
				Tax on Buyers
				Search Costs
			LESSON 4: DEMAND ELASTICITIES
				Demand Elasticities
				Own-Price Elasticity of Demand
				Factors Affecting Own-Price Elasticity of Demand
				Own-Price Elasticity of Demand and Total Expenditure
				Total Revenue and Price Elasticity
				Income Elasticity of Demand
				Cross-Price Elasticity of Demand
				Calculating Demand Elasticities from Demand Functions
		Reading 14: Demand And Supply Analysis: Consumer Demand
			LESSON 1: INDIFFERENCE CURVES AND THE OPPORTUNITY SET
				Axioms of the Theory of Consumer Choice
				The Utility Function
				Indifference Curves: The Graphical Portrayal of the Utility Function
				Indifference Curve Maps
				Gains from Voluntary Exchange: Creating Wealth Through Trade
				The Opportunity Set: Consumption, Production, and Investment Choice
				The Budget Constraint
				The Production Opportunity Set
			LESSON 2: CONSUMER EQUILIBRIUM
				Consumer Response to Changes in Income: Normal and Inferior Goods
				Consumer’s Demand Curve from Preferences and Budget Constraints
			LESSON 3: INCOME AND SUBSTITUTION EFFECTS
				Substitution and Income Effects for a Normal Good
				Income and Substitution Effects for an Inferior Good
				Giffen Goods
				Veblen Goods
		Reading 15: Demand and Supply Analysis: The Firm
			LESSON 1: TYPES OF PROFIT MEASURES
				Objectives of the Firm
				Types of Profit Measures
				Comparison of Profit Measures
			LESSON 2: ANALYSIS OF REVENUE AND COSTS
				Total, Average, and Marginal Revenue
				Factors of Production
				Total, Average, Marginal, Fixed, and Variable Costs
				The Firm’s Short Run Supply Curve
			LESSON 3: MAXIMIZING PROFITS AND OPTIMIZING PRODUCTIVITY
				Profit Maximization Under Perfect Competition
				Profit Maximization Under Imperfect Competition
				Productivity
				Total, Average, and Marginal Product of Labor
			LESSON 4: ECONOMIES AND DISECONOMIES OF SCALE AND PROFIT MAXIMIZATION IN THE SHORT RUN V. LONG RUN
				The Production Function
				Economies and Diseconomies of Scale
				Equilibrium in the Short Run
				Equilibrium in the Long Run
				Economic Profits
				Economic Losses
			LESSON 5: LONG RUN SUPPLY
				The Long Run Industry Supply Curve
		Reading 16: The Firm And Market Structures
			LESSON 1: MARKET STRUCTURE 1: PERFECT COMPETITION
				Perfect Competition
				Characteristics
				Demand in a Perfectly Competitive Market
				Elasticity of Demand
				Price Elasticity of Demand
				Income Elasticity of Demand
				Cross Elasticity of Demand
				Consumer Surplus: Value Minus Expenditure
				Supply Analysis in Perfectly Competitive Markets
				Optimal Price and Output in Perfectly Competitive Markets
				Changes in Plant Size
				Permanent Decrease in Demand for a Product
				Schumpeter’s Take on Perfect Competition
			LESSON 2: MARKET STRUCTURE 2: MONOPOLY
				Monopoly
				Characteristics
				Factors that Give Rise to Monopolies
				Demand Analysis in Monopoly Markets
				Supply Analysis in Monopoly Markets
				Optimal Price and Output in Monopoly Markets
				Regulation of Natural Monopolies
				Price Discrimination and Consumer Surplus
				Factors Affecting Long Run Equilibrium in Monopoly Markets
			LESSON 3: MARKET STRUCTURE 3: MONOPOLISTIC COMPETITION
				Monopolistic Competition
				Demand and Supply Analysis in Monopolistically Competitive Markets
				Factors Affecting Long-Run Equilibrium in Monopolistically Competitive Markets
				Monopolistic Competition Versus Perfect Competition
			LESSON 4: MARKET STRUCTURE 4: OLIGOPOLY
				Oligopoly
				Characteristics
				Demand Analysis and Pricing Strategies in Oligopoly Markets
				Factors Affecting Chances of Successful Collusion
				Supply Analysis in Oligopoly Markets
				Optimal Price and Output in Oligopoly Markets
				Factors Affecting Long-Run Equilibrium in Oligopoly Markets
			LESSON 5: IDENTIFICATION OF MARKET STRUCTURE
				Identification of Market Structure
				Other Measures
	Study Session 5: Economics— Macroeconomic Analysis
		Reading 17: Aggregate Output, Prices, And Economic Growth
			LESSON 1: AGGREGATE OUTPUT AND INCOME
				Gross Domestic Product (GDP)
				GDP Deflator
				The Components of GDP
				Expenditure Approach
				Income Approach
				Other GDP-Related Measures
			LESSON 2: AGGREGATE DEMAND, AGGREGATE SUPPLY AND EQUILIBRIUM: PART 1 (FUNDAMENTAL RELATIONSHIPS)
			LESSON 3: AGGREGATE DEMAND, AGGREGATE SUPPLY AND EQUILIBRIUM: PART 2 (IS-LM ANALYSIS AND THE AD CURVE)
				The IS Curve (Relationship Between Income and the Real Interest Rate)
				The LM Curve
				The Aggregate Demand Curve
			LESSON 4: AGGREGATE DEMAND, AGGREGATE SUPPLY AND EQUILIBRIUM: PART 3 (MACROECONOMIC CHANGES AND EQUILIBRIUM)
				Shifts in Aggregate Demand
				Shifts in Short-Run Aggregate Supply
				Shifts in Long-Run Aggregate Supply
				Short-Run Equilibrium
				Long-Run Full Employment Equilibrium
				Business Cycles
				Stagflation
			LESSON 5: ECONOMIC GROWTH AND STABILITY
				The Production Function and Potential GDP
				Sources of Economic Growth
				Measures of Sustainable Growth
		Reading 18: Understanding Business Cycles
			LESSON 1: THE BUSINESS CYCLE
				Overview of Business Cycles
				Phases of the Business Cycle
				Resource Use Through the Business Cycle
				Fluctuations in Capital Spending
				Fluctuation in Inventory Levels
				Consumer Behavior
				Housing Sector Behavior
				External Trade Sector Behavior
				Neoclassical School of Thought
				Austrian School of Thought
				Keynesian School of Thought
				Monetarist School of Thought
				The New Classical School (RBC Theory)
				Neo-Keynesian or New Keynesian Theory
			LESSON 2: UNEMPLOYMENT, INFLATION AND ECONOMIC INDICATORS
				The Unemployment Rate
				Overall Payroll Employment and Productivity Indicators
				Inflation
				Deflation
				Hyperinflation
				Disinflation
				Price Indices and their Usage
				Cost-Push Inflation
				Demand-Pull Inflation
				Monetarists’ Views on Inflation
				Inflation Expectations
		Reading 19: Monetary And Fiscal Policy
			LESSON 1: MONETARY POLICY (PART I)
				Problems with a Barter Economy
				The Functions of Money
				Paper Money and the Money-Creation Process
				Definitions of Money
				The Quantity Theory of Money
				The Demand for Money
				Supply and Demand for Money
				The Roles of the Central Bank
				Objectives of Monetary Policy
				Costs of Inflation
			LESSON 2: MONETARY POLICY (PART II)
				Monetary Policy Tools
				The Transmission Mechanism
				Monetary Policy Strategies
				Challenges to the Effectiveness of Monetary Policy in Developing Countries
				Contractionary and Expansionary Monetary Policies
				The Neutral Rate of Interest
				Limitations of Monetary Policy
			LESSON 3: FISCAL POLICY
				Fiscal Policy
				Roles and Objectives of Fiscal Policy
				Deficits and National Debt
				Fiscal Policy Tools and the Macroeconomy
				Advantages and Disadvantages of Different Fiscal Policy Tools
				The Fiscal Multiplier
				The Balanced Budget Multiplier
				Issues in Fiscal Policy Implementation
				The Relationships Between Monetary and Fiscal Policy
				Factors Influencing the Mix of Fiscal and Monetary Policy
	Study Session 6: Economics in a Global Context
		Reading 20: International Trade and Capital Flows
			LESSON 1: BASIC TERMINOLOGY, ABSOLUTE AND COMPARATIVE ADVANTAGE
				Ricardian Model
			LESSON 2: TRADE AND CAPITAL FLOWS: RESTRICTIONS AND AGREEMENTS
				Trade Restrictions
				Arguments for Trade Restrictions
				Quotas
				Voluntary Export Restraints
				Export Subsidies
			CAPITAL RESTRICTIONS
				Common Objectives
				Forms of Capital Controls
				Benefits of Free Movement of Financial Capital
				Effectiveness of Capital Controls
				Costs of Capital Controls
				Advantages of Trade Blocs
				Balance of Payment Components
			LESSON 3: THE BALANCE OF PAYMENTS AND TRADE ORGANIZATIONS
				National Economic Accounts and the Balance of Payments
				World Bank Group
				World Trade Organization (WTO)
				International Monetary Fund
		Reading 21: Currency Exchange Rates
			LESSON 1: THE FOREIGN EXCHANGE MARKET
				Nominal and Real Exchange Rates
				Spot and Forward Exchange Rates
				Functions of the Foreign Exchange Market
				Market Participants
				Sell Side
				Buy Side
				Market Size and Composition
			LESSON 2: CURRENCY EXCHANGE RATE CALCULATIONS: PART 1
				Exchange Rate Quotations
			LESSON 3: CURRENCY EXCHANGE RATE CALCULATIONS: PART 2
			LESSON 4: EXCHANGE RATE REGIMES AND THE IMPACT OF EXCHANGE RATES ON TRADE AND CAPITAL FLOWS
				Types of Exchange Rate Regimes
				Arrangements with No Separate Legal Tender
				Arrangements Where Countries Have Their Own Currency
				Exchange Rates and the Trade Balance
				The Elasticities Approach
				The Absorption Approach
Volume 3
	Title Page
	Copyright Page
	Contents
	Study Session 7: Financial Reporting and Analysis: An Introduction
		Reading 22: Financial Statement Analysis: An Introduction
			LESSON 1: FINANCIAL STATEMENT ANALYSIS: AN INTRODUCTION
				Statement of Comprehensive Income (or Income Statement plus Statement of Other Comprehensive Income)
				Balance Sheet
				Cash Flow Statement
				Statement of Changes in Owners’ Equity
				Financial Notes and Supplementary Information
				Management’s Discussion and Analysis (MD&A)
				Types of Audit Opinions
		Reading 23: Financial Reporting Mechanics
			LESSON 1: CLASSIFICATION OF BUSINESS ACTIVITIES AND FINANCIAL STATEMENT ELEMENTS AND ACCOUNTS
				Operating Activities
				Investing Activities
				Financing Activities
				Classification of Accounts into Financial Statement Elements
			LESSON 2: ACCOUNTING EQUATIONS
			LESSON 3: THE ACCOUNTING PROCESS
			LESSON 4: ACCRUALS, VALUATION ADJUSTMENTS, ACCOUNTING SYSTEMS AND USING FINANCIAL STATEMENTS IN SECURITY ANALYSIS
				Accrual Entries
				Valuation Adjustments
		Reading 24: Financial Reporting Standards
			LESSON 1: FINANCIAL REPORTING STANDARDS
				The Role of Standard.-Setting Bodies and Regulatory Authorities
				Standard -Setting Bodies
				International Accounting Standards Board (IASB)
				Financial Accounting Standards Board (FASB)
				Desirable Attributes of an Accounting Standards Board
				Regulatory Authorities
				The U.S. Securities and Exchange Commission
				Objective of Financial Statements
				Qualitative Characteristics
				Constraints on Financial Statements
				Reporting Elements
				Underlying Assumptions in Financial Statements
				Recognition and Measurement of Financial Statement Elements
				Required Financial Statements
				General Features of Financial Statements
				Structure and Content Requirements
				Characteristics of an Effective Financial Reporting Framework
				Barriers to Creating a Single Coherent Framework
	Study Session 8: Income Statements, Balance Sheets, and Cash Flow Statements
		Reading 25: Understanding Income Statements
			LESSON 1: INCOME STATEMENT: COMPONENTS AND FORMAT
			LESSON 2: REVENUE AND EXPENSE RECOGNITION
				Revenue Recognition in Special Cases
				Long -Term Contracts
				Installment Sales
				Barter Transactions
				Gross Versus Net Reporting
				Implications for Financial Analysis
				Inventory Methods
				Issues in Expense Recognition
				Doubtful Accounts
				Warranties
				Depreciation
				Amortization
				Demonstration of Depreciation Methods
				Implications for Financial Analysis
			LESSON 3: NON-RECURRING ITEMS, NON-OPERATING ITEMS
				Discontinued Operations
				Extraordinary Items
				Unusual or Infrequent Items
				Changes in Accounting Policies
			LESSON 4: EARNINGS PER SHARE, ANALYSIS OF THE INCOME STATEMENT AND COMPREHENSIVE INCOME
				Diluted EPS when a Company has Convertible Preferred Stock Outstanding
				Diluted EPS when a Company has Convertible Debt Outstanding
				Diluted EPS when a Company has Stock Options, Warrants, or their Equivalents Outstanding
			LESSON 5: ANALYSIS OF THE INCOME STATEMENT AND COMPREHENSIVE INCOME
				Analysis of the Income Statement
				Income Statement Ratios
				Items Classified as Other Comprehensive Income
		Reading 26: Understanding Balance Sheets
			LESSON 1: BALANCE SHEET: COMPONENTS AND FORMAT
				Assets
				Liabilities
				Equity
			LESSON 2: ASSETS AND LIABILITIES: CURRENT VERSUS NON-CURRENT
				IFRS and U.S. GAAP Balance Sheet Presentation
				Current Assets
				Current Liabilities
				Non-Current Assets
				Non-Current Liabilities
			LESSON 3: EQUITY
				Statement of Changes in Owners’ Equity
				Uses and Analysis of Balance Sheets
			LESSON 4: ANALYSIS OF THE BALANCE SHEET
				Common-Size Balance Sheets
				Balance Sheet Ratios
		Reading 27: Understanding Cash Flow Statements
			LESSON 1: THE CASH FLOW STATEMENT: COMPONENTS AND FORMAT
				The Direct Method Versus Indirect Method
			LESSON 2: THE CASH FLOW STATEMENT: LINKAGES AND PREPARATION
				Links Between the Cash Flow Statement and the Income Statement and Balance Sheet
				Sources Versus Uses of Cash
				The Direct Method
				The Indirect Method
				Conversion from Indirect to the Direct Method
			LESSON 3: CASH FLOW STATEMENT ANALYSIS
				Cash Flow Ratios
		Reading 28: Financial Analysis Techniques
			LESSON 1: ANALYTICAL TOOLS AND TECHNIQUES
				Uses of Ratio Analysis
				Common-Size Analysis
				Cross-Sectional Analysis
				Trend Analysis
				Uses of Charts in Financial Analysis
				Limitations of Ratio Analysis
			LESSON 2: COMMON RATIOS USED IN FINANCIAL ANALYSIS
				Interpretation and Context
				Activity Ratios
				Liquidity Ratios
				Solvency Ratios
				Profitability Ratios
			LESSON 3: DUPONT ANALYSIS, EQUITY ANALYSIS, CREDIT ANALYSIS, AND BUSINESS AND GEOGRAPHIC SEGMENTS
				Decomposition of ROE
				Two-Way DuPont Decomposition
				Three-Way DuPont Decomposition
				Five-Way DuPont Decomposition
				Equity Analysis
				Valuation Ratios
				Per Share Quantities that are Important in Equity Analysis
				Dividend Related Quantities
				Industry-Specific Ratios
				Credit Analysis
				Segment Analysis
	Study Session 9: Inventories, Long-Lived Assets, Income Taxes, and Non-Current Liabilities
		Reading 29: Inventories
			LESSON 1: COST OF INVENTORIES
			LESSON 2: INVENTORY VALUATION METHODS AND MEASUREMENT OF INVENTORY VALUE
				Inventory Valuation Methods (Cost Formulas)
				Balance Sheet Information: Inventory Account
				Income Statement Information: Cost of Goods Sold
				Periodic Versus Perpetual Inventory Systems
			LESSON 3: PRESENTATION AND DISCLOSURE AND EVALUATION OF INVENTORY MANAGEMENT
				Presentation and Disclosure
				Inventory Method Changes
		Reading 30: Long-Lived Assets
			LESSON 1: ACQUISITION OF LONG-LIVED ASSETS: PROPERTY, PLANT, AND EQUIPMENT, AND INTANGIBLE ASSETS
				Capitalized Costs
				Expensed Costs
				Costs Incurred at Acquisition
				Capitalization of Interest Costs
				Analytical Issues Relating to Capitalization of Interest Costs
				1. Intangible Assets Acquired in Situations Other than Business Combinations (e.g., Buying a Patent)
				2. Intangible Assets Developed Internally
				3. Intangible Assets Acquired in a Business Combination
			LESSON 2: DEPRECIATION AND AMORTIZATION OF LONG-LIVED ASSETS, AND THE REVALUATION MODEL
				Comparison Between Straight-Line and Accelerated Depreciation Methods
				Estimates Used for Calculating Depreciation
				The Revaluation Model
			LESSON 3: IMPAIRMENT OF ASSETS, DERECOGNITION OF ASSETS, PRESENTATION AND DISCLOSURES AND INVESTMENT PROPERTY
				Impairment of Property, Plant, and Equipment
				Impairment of Intangible Assets with a Finite Life
				Impairment of Intangibles with Indefinite Lives
				Impairment of Long-Lived Assets Held for Sale
				Reversals of Impairments of Long-Lived Assets
				Sale of Long-Lived Assets
				Long-Lived Assets Disposed of Other than by a Sale
				Investment Property
		Reading 31: Income Taxes
			LESSON 1: KEY DEFINITIONS AND CALCULATING THE TAX BASE OF ASSETS AND LIABILITIES
				Determining the Tax Base of an Asset
				Determining the Tax Base of a Liability
			LESSON 2: CREATION OF DEFERRED TAX ASSETS AND LIABILITIES, RELATED CALCULATIONS AND CHANGES IN DEFERRED TAXES
				Deferred Tax Assets
				1. Taxable Temporary Differences
				2. Deductible Temporary Differences
				Temporary Differences at Initial Recognition of Assets and Liabilities
				Business Combinations and Deferred Taxes
				Investments in Subsidiaries, Branches, Associates, and Joint Ventures
				Unused Losses and Tax Credits
				Recognition and Measurement of Current and Deferred Tax
			LESSON 3: RECOGNITION AND MEASUREMENT OF CURRENT AND DEFERRED TAX AND PRESENTATION AND DISCLOSURE
				Recognition of a Valuation Allowance
				Recognition of Current and Deferred Tax Charged Directly to Equity
		Reading 32: Non-Current (Long-Term) Liabilities
			LESSON 1: BONDS PAYABLE
				Financing Liabilities: Terminology
				Effects on Financial Statements
				Effect on Financial Statements
				Zero-Coupon Bonds
				Treatment of Noncurrent Liabilities under U.S. GAAP and IFRS
				Fair Value Reporting Option
				Derecognition of Debt
			LESSON 2: LEASES
				Lessee’s Perspective
				Operating Lease (Lessee’s Perspective)
				Capital or Finance Lease (Lessee’s Perspective)
				Balance Sheet
				Income Statement
				Statement of Cash Flows
				Lessor’s Perspective
				Finance Leases
				Sales-Type Leases
				Disclosures
			LESSON 3: PENSIONS AND OTHER POST-EMPLOYMENT BENEFITS AND EVALUATING SOLVENCY
				Evaluating Solvency Ratios
	Study Session 10: Financial Reporting Quality and Financial Statement Analysis
		Reading 33: Financial Reporting Quality
			LESSON 1: CONCEPTIAL OVERVIEW AND QUALITY SPECTRUM OF FINANCIAL REPORTS
			CONCEPTUAL OVERVIEW
			QUALITY SPECTRUM OF FINANCIAL REPORTS
				GAAP, Decision-Useful, Sustainable, and Adequate Returns
				GAAP, Decision-Useful, but Sustainable?
				Within GAAP, but Biased Accounting Choices
				Within GAAP, but “Earnings Management”
				Departures from GAAP—Noncompliant Accounting
				Departures from GAAP—Fictitious Transactions
				Differentiate between Conservative and Aggressive Accounting
			LESSON 2: CONTEXT FOR ASSESSING FINANCIAL REPORTING QUALITY
			CONTEXT FOR ASSESSING FINANCIAL REPORTING QUALITY
				Motivations
				Conditions Conducive to Issuing Low-Quality Financial Reports
				Mechanisms that Discipline Financial Reporting Quality
			LESSON 3: DETECTION OF FINANCIAL REPORTING QUALITY ISSUES
			DETECTION OF FINANCIAL REPORTING QUALITY ISSUES
				Presentation Choices
				Accounting Choices and Estimates
			WARNING SIGNS
				Warning Signs Related to Revenue
				Warning Signs Related to Inventories
				Warning Signs Related to Capitalization Policies and Deferred Costs
				Warning Signs Related to the Relationship between Cash Flow and Income
				Other Potential Warning Signs
		Reading 34: Financial Statement Analysis: Applications
			LESSON 1: EVALUATING PAST FINANCIAL PERFORMANCE AND PROJECTING FUTURE PERFORMANCE
			LESSON 2: ASSESSING CREDIT RISK AND SCREENING FOR POTENTIAL EQUITY INVESTMENTS
			LESSON 3: ANALYST ADJUSTMENTS TO REPORTED FINANCIALS
Volume 4
	Title Page
	Copyright Page
	Contents
	Study Session 11: Corporate Finance
		Reading 35: Capital Budgeting
			LESSON 1: CAPITAL BUDGETING
				Net Present Value (NPV)
				Decision Rules for IRR
				Discounted Payback Period
				Average Accounting Rate of Return (AAR)
				Profitability Index
				Decision Rules for PI
				NPV Profiles
				NPV and IRR Applied to Independent Projects
				NPV and IRR Applied to Mutually Exclusive Projects
				Problems with the IRR
		Reading 36: Cost of Capital
			LESSON 1: COST OF CAPITAL
			LESSON 2: COSTS OF THE DIFFERENT SOURCES OF CAPITAL
				1. Yield-to-Maturity Approach
				2. Debt-Rating Approach
				Issues in Estimating Cost of Debt
				1. Capital Asset Pricing Model (CAPM)
				2. Dividend Discount Model Approach
				3. Bond Yield Plus Risk Premium Approach
			LESSON 3: TOPICS IN COST OF CAPITAL ESTIMATION
				Correct Treatment of Flotation Costs
		Reading 37: Measures of Leverage
			LESSON 1: MEASURES OF LEVERAGE
				Business Risk and Financial Risk
				Business Risk
				Financial Risk
				Total Leverage
				Breakeven Points and Operating Breakeven Points
		Reading 38: Dividends and Share Repurchases: Basics
			LESSON 1: DIVIDENDS
				Cash Dividends
				Regular Cash Dividends
				Dividend Reinvestment Plans (DRPs)
				Extra or Special (Irregular) Dividends
				Liquidating Dividends
				Stock Dividends
			LESSON 2: SHARE REPURCHASES
				Share Repurchases Versus Cash Dividends
				Arguments for Share Repurchases
				Share Repurchase Methods
				Share Repurchases Using Excess Cash
				Share Repurchases Using Borrowed Funds
				Concluding Remarks
		Reading 39: Working Capital Management
			LESSON 1: WORKING CAPITAL MANAGEMENT
				Investing Short-Term Funds
				Yields on Short-Term Investments
				Yields on Short-Term Investments
				Cash Management Investment Strategies
				Cash Management Investment Policy
				Key Elements of the Trade Credit Granting Process
				Managing Customers’ Receipts
				Evaluating Management of Accounts Receivable
				Evaluating Inventory Management
				Evaluating Management of Accounts Payable
		Reading 40: The Corporate Governance of Listed Companies: A Manual for Investors
			LESSON 1: THE CORPORATE GOVERNANCE OF LISTED COMPANIES: A MANUAL FOR INVESTORS
				Compensation and Related-Party Transactions
				Remuneration Committee
				Other Board Committees
				Board Communication with Shareowners
				Management Communication with Shareowners
				Voting Rules
				Shareowner Proposals
				Other Shareholder Rights Issues
	Study Session 12: Portfolio Management
		Reading 41: Portfolio Management: An Overview
			LESSON 1: PORTFOLIO MANAGEMENT: AN OVERVIEW
				Reasons for Taking the Portfolio Perspective
				Individual Investors
				Institutional Investors
				Planning
				Execution
				Feedback
				Pooled Investments
				Other Investment Products
		Reading 42: Portfolio Risk and Return: Part I
			LESSON 1: INVESTMENT CHARACTERISTICS OF ASSETS
				Return
				Variance and Covariance of Returns
				Other Investment Characteristics
			LESSON 2: RISK AVERSION, PORTFOLIO SELECTION AND PORTFOLIO RISK
				The Concept of Risk Aversion
				Important Notes Regarding the Risk Aversion Coefficient, “A”
				Indifference Curves
				Application of Utility Theory to Portfolio Selection
				The Risk-Free Asset
				Expected Return for a Portfolio Containing a Risky Asset and the Risk-Free Asset
				Standard Deviation of a Portfolio Containing a Risky Asset and the Risk-Free Asset
				Portfolio Risk
				Implications
				Constant Correlation with Changing Weights
				Portfolios of Many Risky Assets
				Avenues for Diversification
			LESSON 3: EFFICIENT FRONTIER AND INVESTOR’S OPTIMAL PORTFOLIO
				A Risk-Free Asset and Many Risky Assets
				The Two-Fund Separation Theorem
				Optimal Investor Portfolio
		Reading 43: Portfolio Risk and Return: Part II
			LESSON 1: CAPITAL MARKET THEORY
				The Capital Market Line
				Leveraged Positions with Different Lending and Borrowing Rates
			LESSON 2: PRICING OF RISK AND COMPUTATION OF EXPECTED RETURN
				Systematic and Nonsystematic Risk
				Return-Generating Models
				The Market Model
				Calculation and Interpretation of Beta
				Important Points Regarding Beta
				Estimating Beta Using Regression Analysis
			LESSON 3: THE CAPITAL ASSET PRICING MODEL
				The Capital Asset Pricing Model
				Applications of the CAPM
				Security Characteristic Line
				Security Selection: Identifying Mispriced Securities
				Constructing a Portfolio
				Beyond the CAPM
		Reading 44: Basics of Portfolio Planning and Construction
			LESSON 1: PORTFOLIO PLANNING
				The Investment Policy Statement
				Risk Objectives
				Return Objectives
				Liquidity
				Time Horizon
				Tax Concerns
				Legal and Regulatory Factors
				Unique Circumstances
			LESSON 2: PORTFOLIO CONSTRUCTION
				Portfolio Construction
				Capital Market Expectations
				The Strategic Asset Allocation
				Steps Toward an Actual Portfolio
				Additional Portfolio Organizing Principles
	Study Session 13: Market Organization, Market Indices, and Market Efficiency
		Reading 45: Market Organization and Structure
			LESSON 1: THE FUNCTIONS OF THE FINANCIAL SYSTEM, ASSETS, CONTRACTS, FINANCIAL INTERMEDIARIES AND POSITIONS
				1. Helping people achieve their purposes in using the financial system
				2. Determining rates of return
				3. Allocating capital efficiently
				Securities
				Real Assets
				Brokers, Exchanges, and Alternative Trading Systems
				Dealers
				Depository Institutions and Other Financial Corporations
				Settlement and Custodial Services
				Short Positions
				Levered Positions
			LESSON 2: ORDERS, PRIMARY AND SECONDARY SECURITY MARKETS, AND MARKET STRUCTURES
				Execution Instructions
				Exposure Instructions
				Validity Instructions
				Clearing Instructions
				Primary Markets
				Public Offerings
				Private Placements
				Other Primary Market Transactions
				Secondary Markets
				Trading Sessions
				Execution Mechanisms
				Market Information Systems
			LESSON 3: WELL-FUNCTIONING FINANCIAL SYSTEMS AND MARKET REGULATION
		Reading 46: Security Market Indices
			LESSON 1: INDEX DEFINITION, CALCULATIONS, CONSTRUCTION AND MANAGEMENT
				Calculation of Single Period Returns
				Price Return
				Total Return
				Calculation of Index Returns over Multiple Time Periods
				Target Market and Security Selection
				Price Weighting
				Equal Weighting
				Market-Capitalization Weighting
				Float-Adjusted Market-Capitalization Weighting
				Fundamental Weighting
				Rebalancing
				Reconstitution
			LESSON 2: USES OF MARKET INDICES AND TYPES OF INDICES
				Types of Fixed-Income Indices
		Reading 47: Market Efficiency
			LESSON 1: THE CONCEPT OF MARKET EFFICIENCY AND FORMS OF MARKET EFFICIENCY
				Factors Contributing to and Impeding a Market’s Efficiency
				Weak-Form Efficient Market Hypothesis
				Semi-Strong Form Efficient Market Hypothesis
				Strong-Form Efficient Market Hypothesis
				Implications of Efficient Market Hypothesis
				Efficient Markets and Technical Analysis
				Efficient Markets and Fundamental Analysis
				Efficient Markets and Portfolio Management
			LESSON 2: MARKET PRICING ANOMALIES AND BEHAVIORAL FINANCE
				1. Time-Series Anomalies
				2. Cross-Sectional Anomalies
				3. Other Anomalies
	Study Session 14: Equity Analysis and Evaluation
		Reading 48: Overview of Equity Securities
			LESSON 1: OVERVIEW OF EQUITY SECURITIES
				Common Shares
				Preference Shares
				Types of Private Equity Investments
				Advantages of Private Companies
				Advantages of Public Companies
				Methods for Investing in Nondomestic Equity Securities
				Return Characteristics of Equity Securities
				Risks of Equity Securities
				Equity Securities and Company Value
				Accounting Return on Equity
				The Cost of Equity and Investors’ Required Rates of Return
		Reading 49: Introduction To Industry And Company Analysis
			LESSON 1: INTRODUCTION TO INDUSTRY AND COMPANY ANALYSIS
				Products and/or Services Supplied
				Business-Cycle Sensitivities
				Statistical Similarities
				Industry Classification Systems
				Strengths and Weaknesses of Current Systems
				Steps in constructing a preliminary list of peer companies
				Porter’s Five Forces Framework
				Barriers to Entry
				Industry Capacity
				Market Share Stability
				Limitations of Industry Life-Cycle Analysis
				Price Competition
				Macroeconomic Influences
				Technological Influences
				Demographic Influences
				Governmental Influences
				Social Influences
				Product/Service Differentiation
				Elements that Should be Considered in a Company Analysis
				Spreadsheet Modeling
		Reading 50: Equity Valuation: Concepts and Basic Tools
			LESSON 1: INTRODUCTION
			LESSON 2: PRESENT VALUE MODELS
				Examples of DDM in Valuing Common Stock
				Multiple-Year Holding Period DDM
				Infinite Period DDM (Gordon Growth Model)
				Valuation of Common Stock with Temporary Supernormal Growth
				The Free-Cash-Flow-to-Equity (FCFE) Model
			LESSON 3: MULTIPLIER MODELS AND ASSET-BASED VALUATION
				Multiples Based on Fundamentals
				Multiples Based on Comparables
				Price to Earnings Ratio
				Price to Cash Flow
				Price to Sales
				Price to Book Value
Volume 5
	Title Page
	Copyright Page
	Contents
	Study Session 15: Fixed Income—Basic Concepts
		Reading 51: Fixed-Income Securities: Defining Elements
			LESSON 1: OVERVIEW OF A FIXED-INCOME SECURITY
				OVERVIEW OF A FIXED-INCOME SECURITY
				THE BOND INDENTURE
			LESSON 2: LEGAL, REGULATORY AND TAX CONSIDERATIONS
				Legal and Regulatory Considerations
				Tax Considerations
			LESSON 3: STRUCTURE OF A BOND’S CASH FLOWS
				PRINCIPAL REPAYMENT STRUCTURES
			LESSON 4: BONDS WITH CONTINGENCY PROVISIONS
				BONDS WITH CONTINGENCY PROVISIONS
		Reading 52: Fixed‐Income Markets: Issuance, Trading,

And Funding
			LESSON 1: OVERVIEW OF GLOBAL FIXED-INCOME MARKETS
				OVERVIEW OF GLOBAL FIXED-INCOME MARKETS
			LESSON 2: PRIMARY AND SECONDARY BOND MARKETS
				Primary Bond Markets
				Public Offerings
				Private Placements
			LESSON 3: ISSUERS OF BONDS
				CORPORATE DEBT
				Sovereign Bonds
				Nonsovereign Government Bonds
				Quasi-Government Bonds
				Supranational Bonds
			LESSON 4: SHORT-TERM FUNDING ALTERNATIVES AVAILABLE TO BANKS
				SHORT-TERM FUNDING ALTERNATIVES AVAILABLE TO BANKS
		Reading 53: Introduction to Fixed-Income Valuation
			LESSON 1: BOND PRICES AND THE TIME VALUE OF MONEY
				BOND PRICES AND THE TIME VALUE OF MONEY
			LESSON 2: PRICES AND YIELDS (PART I): CONVENTIONS FOR QUOTES AND CALCULATIONS
				PRICES AND YIELDS: CONVENTIONS FOR QUOTES AND CALCULATIONS
			LESSON 3: PRICES AND YIELDS (PART II): MATRIX PRICING AND YIELD MEASURES FOR BONDS
				Yield Measures for Fixed-Rate Bonds
				Yield Measures for Floating-Rate Notes
				Yield Measures for Money Market Instruments
			LESSON 4: PRICES AND YIELDS (PART III): THE MATURITY STRUCTURE OF INTEREST RATES AND CALCULATING SPOT RATES AND FORWARD RATES
				The Maturity Structure of Interest Rates
				The Spot Rate Curve
				Yield Curve for Coupon Bonds
				Par Curve
				Forward Curve
			LESSON 5: YIELD SPREADS
				YIELD SPREADS
		Reading 54: Introduction to Asset-Backed Securities
			LESSON 1: INTRODUCTION, THE BENEFITS OF SECURITIZATION AND THE SECURITIZATION PROCESS
				INTRODUCTION
				BENEFITS OF SECURITIZATION FOR ECONOMIC AND FINANCIAL MARKETS
				THE SECURITIZATION PROCESS
			LESSON 2: RESIDENTIAL MORTGAGE LOANS AND RESIDENTIAL

MORTGAGE‐BACKED SECURITIES (RMBS)
				RESIDENTIAL MORTGAGE LOANS
				RESIDENTIAL MORTGAGE-BACKED SECURITIES
				COLLATERALIZED MORTGAGE OBLIGATIONS
				NONAGENCY RESIDENTIAL MORTGAGE-BACKED SECURITIES
			LESSON 3: COMMERCIAL MORTGAGE‐BACKED SECURITIES (CMBS) AND

NONMORTGAGE ASSET-BACKED SECURITIES (ABS)
				COMMERCIAL MORTGAGE-BACKED SECURITIES (CMBS)
				NONMORTGAGE ASSET-BACKED SECURITIES
			LESSON 4: COLLATERALIZED DEBT OBLIGATIONS (CDOs)
				COLLATERALIZED DEBT OBLIGATIONS
	Study Session 16: Fixed Income— Analysis of Risk
		Reading 55: Understanding Fixed-Income Risk and Return
			LESSON 1: SOURCES OF RISK
				SOURCES OF RETURN
			LESSON 2: INTEREST RATE RISK ON FIXED-RATE BONDS
				INTEREST RATE RISK OF FIXED‐RATE BONDS
			LESSON 3: YIELD VOLATILITY, INTEREST RATE RISK AND THE INVESTMENT HORIZON, AND CREDIT AND LIQUIDITY RISK
				INTEREST RATE RISK AND THE INVESTMENT HORIZON
				CREDIT AND LIQUIDITY RISK
		Reading 56: Fundamentals of Credit Analysis
			LESSON 1: CREDIT RISK, CAPITAL STRUCTURE, SENIORITY RANKING, AND RECOVERY RATES
				Seniority Ranking
				Recovery Rates
				Priority of Claims: Not Always “Absolute”
			LESSON 2: RATING AGENCIES, CREDIT RATINGS, AND THEIR ROLE IN DEBT MARKETS
				Credit Ratings
				Issuer vs. Issue Ratings
				Notching
				Risks in Relying on Agency Ratings
			LESSON 3: TRADITIONAL CREDIT ANALYSIS
				The Four Cs of Credit Analysis: A Useful Framework
				Capacity
				Collateral
				Covenants
				Character
				Ratios and Ratio Analysis
				Issuer Liquidity
			LESSON 4: CREDIT RISK VERSUS RETURN: YIELDS AND SPREADS
			LESSON 5: SPECIAL CONSIDERATIONS OF HIGH YIELD, SOVEREIGN AND MUNICIPAL CREDIT ANALYSIS
				High-Yield Corporate Debt
				Equity‐like Approach to High‐Yield Analysis
				Sovereign Debt
				Municipal Debt
	Study Session 17: Derivatives
		Reading 57: Derivative Markets and Instruments
			LESSON 1: DERIVATIVE MARKETS, FORWARD COMMITMENTS, AND CONTINGENT CLAIMS
				INTRODUCTION
				FORWARD COMMITMENTS
				CONTINGENT CLAIMS
			LESSON 2: BENEFITS AND CRITICISMS OF DERIVATIVES, AND ARBITRAGE
				Purposes and Benefits of Derivatives
				Criticisms and Misuses of Derivatives
		Reading 58: Basics of Derivative Pricing and Valuation
			LESSON 1: FUNDAMENTAL CONCEPTS AND PRICE VERSUS VALUE
				FUNDAMENTAL CONCEPTS OF DERIVATIVE PRICING
			LESSON 2: FORWARD CONTRACTS
				FORWARD CONTRACTS
			LESSON 3: FUTURES CONTRACTS
				FUTURES CONTRACTS
			LESSON 4: SWAP CONTRACTS
				SWAPS
			LESSON 5: OPTION CONTRACTS PART 1: EUROPEAN OPTION PRICING
				OPTIONS
				PUT OPTIONS
			LESSON 6: OPTION CONTRACTS PART 2: BINOMIAL OPTION PRICING
				Binomial Valuation of Options
				The One-Period Binomial Model
				One-Period Binomial Arbitrage Opportunity
				Binomial Put Option Pricing
			LESSON 7: OPTION CONTRACTS PART 3: AMERICAN OPTION PRICING
				American Option Pricing
		Reading 59: Risk Management Applications of Option Strategies
			LESSON 1: OPTION STRATEGIES
				Call Holder’s Perspective
				Call Writer’s Perspective
				Put Holder’s Perspective
				Put Writer’s Perspective
				Protective Put Strategy
				Summary
	Study Session 18: Alternative Instruments
		Reading 60: Introduction to Alternative Investments
			LESSON 1: ALTERNATIVE INVESTMENTS
				Portfolio Context: Integration of Alternative Investments with Traditional Investments
			LESSON 2: MAJOR TYPES OF ALTERNATIVE INVESTMENTS PART I: HEDGE FUNDS
				Hedge Funds
				Hedge Fund Strategies
				Hedge Funds and Diversification Benefits
				Other Considerations
				Due Diligence for Investing in Hedge Funds
			LESSON 3: MAJOR TYPES OF ALTERNATIVE INVESTMENTS
				PART 2: PRIVATE EQUITY, REAL ESTATE, AND COMMODITIES
			LESSON 4: RISK MANAGEMENT
				Risk Management
				Risk Management Issues
				Risk Issues for Implementation
				Risk-Return Measures
				Due Diligence Overview
EULA
                        

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