ETHICS AND STANDARDS

1.1 Introduction 1.2 Code of Ethics 1.3 The Standards of Professional Conduct 1.4 Standard I-A: Knowledge of the Law 1.5 Standard I-B: Independence And Objectivity 1.6 Standard I-C: Misrepresentation 1.7 Standard I-D: Misconduct 1.8 Standard II-A: Material Nonpublic Information 1.9 Standard II-B: Market Manipulation 1.10 Standard III-A: Loyalty, Prudence And Care 1.11 Standard III-B: Fair Dealing 1.12 Standard: III-C: Suitability 1.13 Standard III-D: Performance Presentation 1.14 Standard III-E: Preservation Of Confidentiality 1.15 Standard IV: Duties to Employers, Standard IV-A: Loyalty 1.16 Standard IV-B: Additional Compensation Arrangements 1.17 Standard IV-C: Responsibilities Of Supervisors 1.18 Standard V-A: Diligence And Reasonable Basis 1.19 Standard V-B: Communication With Clients And Prospective Clients 1.20 Standard V-C: Record Retention 1.21 Standard VI-A: Disclosure Of Conflicts 1.22 Standard VI-B: Priority Of Transaction 1.23 Standard VI-C: Referral Fees 1.24 Standard VII: CFA Responsibilities 1.25 Disciplining CFA Members 1.26 Global Investment Performance Standards (GIPS) 1.27 GIPS: Composites And Verification 1.28 GIPS: Key Characteristics 1.29 GIPS: Disclosure And Scope 1.30 GIPS: Requirements And Recommendations 1.31 GIPS: Fundamentals Of Compliance And Conclusion QUANTITATIVE METHODS

2.1 Introduction 2.2 What Is The Time Value Of Money? 2.3 The Five Components Of Interest Rates 2.4 Time Value Of Money Calculations 2.5 Time Value Of Money Applications 2.6 Net Present Value and the Internal Rate of Return 2.7 Money Vs. Time-Weighted Return 2.8 Calculating Yield 2.9 Statistical Concepts And Market Returns 2.10 Basic Statistical Calculations 2.11 Standard Deviation And Variance 2.12 Skew And Kurtosis 2.13 Basic Probability Concepts 2.14 Joint Probability 2.15 Advanced Probability Concepts 2.16 Common Probability Distributions 2.17 Common Probability Distribution Calculations 2.18 Common Probability Distribution Properties 2.19 Confidence Intervals 2.20 Discrete and Continuous Compounding 2.21 Sampling and Estimation 2.22 Sampling Considerations 2.23 Calculating Confidence Intervals 2.24 Hypothesis Testing

2.25 Interpreting Statistical Results 2.26 Correlation and Regression 2.27 Regression Analysis MICROECONOMICS

3.1 Introduction 3.2 Supply and Demand 3.3 Price Elasticity 3.4 Elasticity of Demand 3.5 Elasticity of Supply 3.6 Marginal Benefit and Marginal Cost 3.7 Market Efficiency 3.8 Price Ceilings and Floors 3.9 Effect of Taxes on Supply and Demand 3.10 Opportunity Costs 3.11 Achieving Economic & Technological Efficiency 3.12 Types of Markets & Concentration Measures 3.13 Modifying Output 3.14 Marginal and Average Total Cost Curves 3.15 Perfectly Competitive Markets 3.16 Effects on Equilibrium in the Short and Long Run 3.17 Characteristics of Monopolies 3.18 Inefficiencies of Monopolies 3.19 Monopolistic Competition 3.20 Oligopolies 3.21 Conclusion MACROECONOMICS 4.1 Introduction 4.2 Gross Domestic Product (GDP) 4.3 Nominal vs. Real GDP, and the GDP Deflator 4.4 Limitations of GDP and Alternative Measures 4.5 Components of Marginal Product and Marginal Revenue 4.6 The Demand and Supply of Financial and Physical Capital 4.7 Economic Rent and Opportunity Cost 4.8 Monitoring Cycles, Jobs, and Price Level 4.9 Key Labor Market Indicators 4.10 Types of Unemployment 4.11 The Consumer Price Index & Inflation 4.12 Aggregate Supply & Aggregate Demand 4.13 Short and Long-run Macroeconomic Equilibrium 4.14 Economic Theories 4.15 Money, Banks, and the Federal Reserve 4.16 The Banking System 4.17 Goals and Targets of the U.S. Federal Reserve 4.18 Money, Interest, Real GDP, and the Price Level 4.19 The Equation of Exchange 4.20 Inflation 4.21 Phillips Curve 4.22 Fiscal Policy Basics 4.23 Effects of Fiscal Policy 4.24 The Multiplier Effect 4.25 Discretionary Fiscal Policy and Automatic Stabilizers 4.26 Monetary Policy and Price Level Stability 4.27 Expectations of Monetary Policy GLOBAL ECONOMIC ANALYSIS

5.1 Introduction 5.2 Production Possibility Curves

5.3 Trade Efficiency Rule 5.4 Terms of Trade 5.5 Tariffs and Quotas 5.6 Trade Restrictions 5.7 International Finance 5.8 Purchasing Power Parity and Interest Rate Parity 5.9 Foreign Exchange 5.10 Spread Calculations 5.11 Spot Market Calculations 5.12 Forward Market Calculations 5.13 Interest Applications 5.14 Foreign Exchange Parity Relations 5.15 Currency Appreciation and Depreciation 5.16 Effect of Monetary Policy 5.17 Fixed vs. Pegged Exchange Rate Systems 5.18 Absolute and Relative Purchasing Power Parity 5.19 Relative Purchasing Power Parity FINANCIAL STATEMENTS

6.1 Introduction 6.2 Financial Statement Analysis 6.3 Accounting Process 6.4 Income Statement Basics 6.5 Income Statement Components 6.6 Income Statement: Non-recurring Items 6.7 Balance Sheet Basics 6.8 Balance Sheet Components - Assets 6.9 Balance Sheet Components - Liabilities 6.10 Balance Sheet Components - Marketable & Nonmarketable Instruments 6.11 Shareholders' (Stockholders') Equity Basics 6.12 Components of Stockholders' Equity 6.13 Accounting for Dividends 6.14 Accounting for Equities 6.15 Revenue Recognition 6.16 Revenue Recognition Methods and Implications 6.17 Revenue Recognition and Accounting Entries 6.18 Revenue Recognition Effects on Cash Flows and Financial Ratios 6.19 The Cash Flow Statement 6.20 Cash Flow Statement Basics 6.21 Cash Flow Computations - Indirect Method 6.22 Cash Flow Computations - Direct Method 6.23 Free Cash Flow 6.24 Management Discussion and Analysis & Financial Statement Footnotes 6.25 The Auditor and Audit Opinion 6.26 Financial Reporting Objectives and Enforcement 6.27 Accounting Qualities 6.28 Setting and Enforcing Global Accounting Standards

FINANCIAL RATIOS

7.1 7.2 7.3 7.4 7.5 7.6 7.7

Introduction Internal Liquidity Ratios Operating Profitability Ratios Return on Investment Ratios Operating Efficiency Ratios Business Risk Ratios Financial Risk Ratios

7.8 Growth Potential Ratios 7.9 Return on Equity and the Dupont System 7.10 Uses and Limitations of Financial Ratios 7.11 Basic Earnings Per Share 7.12 Dilutive Effect of Splits and Dividends 7.13 Dilutive Securities 7.14 Calculating Basic and Fully Diluted EPS in a Complex Capital Structure ASSETS

8.1 Introduction 8.2 Choosing the Appropriate Accounting Method For Investment Securities 8.3 Accounting for Credit Transactions 8.4 Basics of Inventories 8.5 Effects of Misstated Inventory 8.6 Inventory Valuation 8.7 Inventory Analysis 8.8 Converting LIFO to FIFO 8.9 Converting FIFO to LIFO 8.10 Effects of Inventory Accounting 8.11 Causes a Decline in LIFO Reserve 8.12 Long Term Asset Basics 8.13 Depreciation Accounting 8.14 Accelerated Depreciation 8.15 Natural Resource Assets 8.16 Effects of Capitalizing vs.Expensing 8.17 Computing the Effect of Capitalizing vs. Expensing 8.18 Capitalizing Intangible Assets 8.19 Depreciation 8.20 Fixed Asset Disclosures 8.21 Asset Impairment

LIABILITIES

9.1 Introduction 9.2 Current Liability Basics 9.3 Income Tax Terminology

9.4 Tax Deferred Liabilities 9.5 Permanent Vs. Temporary Items 9.6 Adjustments To Financial Statements From Tax Rate Changes 9.7 Long-Term Liability Basics 9.8 Journal Entries and Accounting Impact 9.9 Total Interest Cost Components 9.10 Reporting The Retirement Or Conversion of Bonds 9.11 Accounting For Long-Term Liabilities 9.12 Post-Retirement Obligations 9.13 Effects Of Debt Issuance 9.14 Implications Of Debt Issuance 9.15 Effect Of Changing Interest Rate On Debt Market Value 9.16 Capital And Operating Leases 9.17 Effects Of Capital Vs. Operating Leases 9.18 Determining The Value Of The Lease And The Lease Asset 9.19 Sale And Leaseback 9.20 Types Of Off-Balance-Sheet Financing 9.21 Effects Of Off-Balance Sheet Financing Transactions On Financial Ratios 9.22 Accounting For Leases RED FLAGS

10.1 Introduction 10.2 Managerial Discretion 10.3 Shenanigans 10.4 What Causes Shenanigans And Manipulation? 10.5 Finding Shenanigans

CORPORATE FINANCE

11.1 Introduction 11.2 Agent-Principle Relationship 11.3 Capital Budgeting Basics 11.4 The Cost of Capital

11.5 Cost of Retained Earnings 11.6 Cost of Newly Issued Stock 11.7 Target Capital Structure 11.8 Marginal Cost of Capital 11.9 Factors Affecting the Cost of Capital 11.10 Payback Period 11.11 Net Present Value (NPV) and the Internal Rate of Return (IRR) 11.12 The NPV Profile 11.13 Cash Flow and NPV Applications 11.14 Advantages and Disadvantages of the NPV and IRR Methods 11.15 Applying NPV Analysis to Project Decisions 11.16 Comparing Projects With Unequal Lives 11.17 Types of Risk 11.18 Risk-Analysis Techniques 11.19 Security Market Line and Beta Basics 11.20 Factors that Influence a Company's Capital-Structure Decision 11.21 Business and Financial Risk 11.22 Operating Leverage and its Effects on a Project's Expected Rate of Return 11.23 Financial Leverage 11.24 Sales and Leverage 11.25 Effects of Debt on the Capital Structure 11.26 Tax and Bankruptcy Costs 11.27 The MM Capital Structure vs. The Tradeoff Theory of Leverage 11.28 Signaling Prospects Through Financing Decisions 11.29 Degree of Total Leverage 11.30 Dividend Theories 11.31 Dividend Growth Rate and the Effect of Changing Dividend Policy 11.32 Setting Dividends 11.33 Dividend Payment Procedures 11.34 Stock Dividends and Repurchases

SECURITIES MARKET

12.1 Introduction 12.2 Issuing Bonds 12.3 Types of Markets 12.4 Exchange Market Structure 12.5 Exchange Market Characteristics 12.6 Short Selling 12.7 Buying on Margin and Maintenance Margin 12.8 Effects of the Institutionalization of capital markets 12.9 Characteristics of Security Indexes 12.10 Computing Indexes 12.11 Domestic vs. Global Indexes 12.12 The Efficient Market Hypothesis 12.13 Weak, Semi-Strong and Strong EMH 12.14 Market Anomalies 12.15 Implications of Efficient Markets EQUITY INVESTMENTS

13.1 Introduction 13.2 Security Valuation 13.3 The Dividend Discount Model (DDM) 13.4 DDM and the Earnings Multiplier 13.5 Developing Input Estimates Used in the DDM 13.6 Earnings Analysis 13.7 Determining the EPS of a Company 13.8 Life Cycle Analysis: The Business Cycle 13.9 Life Cycle Analysis: The Industry Life Cycle 13.10 The Concentration Ratio and the Herfindahl Index 13.11 Considerations of Global Industry Competition 13.12 Analyzing a Company - Types of Stock 13.13 Technical Analysis 13.14 Using Price Multiples

FIXED INCOME INVESTMENTS

14.1 Introduction 14.2 Bond Features 14.3 Basic Coupon Structures 14.4 Early Retirement 14.5 Provisions for Redeeming Bonds 14.6 Refunding 14.7 The Importance of Embedded Options 14.8 Institutional Investors and Financing Purchases 14.9 Interest Rate Risk 14.10 Call and Prepayment Risk 14.11 Reinvestment Risk 14.12 Yield Curve Risk 14.13 Credit Risk 14.14 Liquidity Risk 14.15 Exchange-Rate Risk 14.16 Volatility Risk 14.17 Inflation Risk 14.18 Event Risk 14.19 Pricing Bonds 14.20 Duration 14.21 International Bonds 14.22 Government Bonds 14.23 Mortgage-Backed Securities (MBS) 14.24 Federal Issues 14.25 Bondholder's Rights 14.26 Other Types of Bonds 14.27 Asset-Backed Securities (ABS) 14.28 Yield Curves 14.29 The Term Structure of Interest Rates 14.30 Types of Yield Measures

14.31 Intermarket vs. Intramarket Sector Spreads 14.32 Options and their Benefits 14.33 After Tax Yield of a Taxable Security 14.34 London Interbank Offer Rate (LIBOR) 14.35 Bond Valuation Basics 14.36 Cash Flow 14.37 Bond Value and Price 14.38 Arbitrage-free Valuation Approach 14.39 Typical Yield Measures 14.40 Assumptions Underlying Traditional Yield Curve Measures 14.41 Importance of Reinvestment Income and Reinvestment Risk 14.42 Spot Rates and Bond Valuation 14.43 Differentiating Between Spreads 14.44 What are Forward Rates? 14.45 Forward Rates vs Spot Rates 14.46 Measuring Interest Rate Risk 14.47 Price Volatility 14.48 Effective, Modified, and Macaulay Duration 14.49 Convexity 14.50 Price Value of a Basis Point (PVBP) DERIVATIVES

15.1 Introduction 15.2 What is a Derivative? 15.3 Common Characteristics of Futures and Forwards 15.4 Fundamental Differences Between Futures and Forwards 15.5 Forward Contracts 15.6 Future Contracts 15.7 Options: Calls and Puts 15.8 Options: Basic Characteristics 15.9 Swaps 15.10 Purposes and Benefits of Derivatives

15.11 Criticisms of Derivatives 15.12 Arbitrage 15.13 Forward Markets and Contracts: Settlement Procedures 15.14 Terminating a Forward Contract Prior to Expiration 15.15 End Users and Dealers 15.16 Equity Forward Contracts 15.17 Forward Contracts on Bonds 15.18 Eurodollar Time Deposit Markets 15.19 Characteristics of Forward Rate Agreements (FRAs) 15.20 Currency Forward Contracts 15.21 Futures vs. Forwards 15.22 Futures Markets Margin 15.23 The Futures Trade Process 15.24 Computing the Margin Balance for a Futures Account 15.25 Closing and Terminating a Futures Position 15.26 Other Types of Derivatives 15.27 European vs. American Options and Moneyness 15.28 Exchange Traded Options 15.29 Interest Rate Options vs. FRAs 15.30 Interest Rate Caps and Floors 15.31 Minimum and Maximum Values for Options 15.32 Straddles and Strangles 15.33 Option Prices and the Time to Expiration 15.34 Put-Call Parity 15.35 Effect of Cash Flows on Put-Call Parity and the Lower Bounds 15.36 Swap Markets and Contracts 15.37 Currency Swaps 15.38 Interest Rate and Equity Swaps 15.39 Managing Risk with Options Strategies: Long and Short Call and Put Positions 15.40 Managing Risk with Options Strategies: Covered Calls and Protective Puts ALTERNATIVE INVESTIMENTS

16.1 Introduction 16.2 Open and closed-end funds 16.3 Net Asset Value 16.4 Fees 16.5 Investment Strategies

PORTIFOLIO MANAGEMENT

17.1 Introduction 17.2 Rate of Return Basics 17.3 The Risk Premium 17.4 The Security Market Line (SML) 17.5 The Portfolio Management Process