CFA Program - Acronym Guidelines for Level I Candidates are responsible for knowing and understanding the following

acronyms, which may appear in CFA Program Level I multiple choice exam questions. Standards of Ethical and Professional Conduct GIPS = Global Investment Performance Standards Currency/Economics EUR = Euro GBP = British pound JPY = Japanese Yen USD = U.S. dollar Financial Reporting and Analysis, Valuation, and Portfolio Management IFRS = International Financial Reporting Standards U.S. GAAP = U.S. Generally Accepted Accounting Principles FIFO = First-In, First-Out LIFO = Last-In, First-Out PP&E (or PPE) = Property, Plant, & Equipment EBIT = Earnings Before Interest, and Taxes EBITDA = Earnings Before Interest, Taxes, Depreciation, and Amortization EPS = Earnings per Share FCFE = Free Cash Flow to Equity FCFF = Free Cash Flow to the Firm P/E = Price-to-Earnings ratio P/B = Price-to-Book ratio P/CF = Price-to-Cash-Flow ratio D/E = Debt-to-Equity ratio ROE = Return On Equity ROA = Return on Assets WACC = Weighted Average Cost of Capital NAV = Net Asset Value CAPM = Capital Asset Pricing Model DDM = Dividend Discount Model CML = Capital Market Line SML = Security Market Line IPS = Investment Policy Statement Corporate Finance IRR = Internal Rate of Return NPV = Net Present Value Asset Classes REIT = Real Estate Investment Trust FOF = Fund-of-Funds ETF = Exchange Traded Funds IPO = Initial Public Offerings LIBOR = London Interbank Offer Rate OAS = Option Adjusted Spread