BOOK 1 —- ETHICAL AND PROFESSIONAL STANDARDS AND QUANTITATIVE METHODS Readings and Learning Outcome Statements . Study Session 1 - Ethical and Professional Standards... Self-Test ~ Ethical and Professional Standards. 121 Study Session 2 ~ Ethical and Professional Standards: Application. Study Session 3 - Quantitative Methods... 140 Self-Test ~ Quantitative Mechods .. +. 265 Formulas.. Appendices. Index|ONAL LEVEL 2 BOOK 1: ETHICAL AND PROFESS ©2008 Kaplan Schweser. All rights reserved. Published in September 2008 by Kaplan Schweser. STANDARDS AND QUANTITATIVE METHODS, Printed in the United States of America. ISBN: 1-60373-229-2 | 978-1-60373-229-1 PPN: 45545CFA If this book does not have the hologram with the Kaplan Schweser logo on the back cover, it was distributed without permission of Kaplan Schweser, a Division of Kaplan, Inc., and is in direct violation of global copyright laws. 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The unauthorized duplication of these notes is a violation of global copyright laws and the CFA Institute Code of Ethics. Your assistance in pursuing potential violators of this law is greatly appreciated Disclaimer: The Schweser Noces should be used in conjunction with the original readings as ser forch by CFA Institute in their 2009 CFA. Level 2 Study Guide. The information contained in these Notes covers topics contained in the readings referenced by CFA Insticute and is believed to be accurate. However, cheir accuracy cannot be guaranteed nor is any warranty conveyed as to your ultimate exam success. The authors of the referenced teadings have not endorsed of sponsored these Notes.WELCOME TO THE 2009 SCHWESERNOTES™ Thank you for trusting Kaplan Schweser to help you reach your goals. We are all very pleased to be able to help you prepare for the Level 2 CFA Exam. In this introduction, T want to explain the resources included with the SchweserNotes™, suggest how you can best use Schweser materials to prepare for the exam, and direct you toward othet educational resources you will find helpful as you study for the exam. Besides the SchweserNotes themselves, there are many educational resources available at Schweset.com. Just log in using the individual username and password that you received when you purchased the SchweserNotes, and go to Online Access Home. All purchasers of our 2009 Level 2 SchweserNotes™ Pack receive the following: SchweserNores™ Five volumes that include complete coverage of all 18 Seudy Sessions and all Learning Outcome Starements (LOS) with examples, Concept Checkers (multiple-choice questions for every reading), and Challenge Problems for many readings to help you master the material and check yorr, progress. At the end of each topic area, we include a self-test. Self-cest questions are created to be exam-like in format and difficulty in order for you to evaluate how well your study of each topic has prepared you for the actual Practice Exams Volume 1 Three full (120-question, 6-hour) Level 2 practice exams to help you prepare for the exam itself as well as to better target your final review efforts. Schweser Library We have created reference videos that are available to all SchweserNotes purchasers. Each Schweser Library volume is approximately 30 to 60 minutes in length. Topics include: “Introduction to Item Sets,” “Hypothesis Testing,” “Foreign Exchange Basics,” “Ratio Analysis,” and “Forward Contracts.” Online Schweser Study Planner Use your Online Access to tell us when you will start and what days of the week you can study. The online Schweser Study Planner will create a study plan just for you, breaking each study session into daily and weekly tasks to keep you on track and help you monitor your progress through the curriculum. 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