Schweser Notes CFA Level I Book 5 Portfolio Management

Description

Book 5: Portfolio Management and Ethical and Professional Standards Learning Outcome Statements (LOS) Reading 61 Portfolio Management: An Overview Exam Focus Module 61.1: Portfolio Management Process Module 61.2: Asset Management and Pooled Investments Types of Mutual Funds Other Forms of Pooled Investments Key Concepts LOS 61.a LOS 61.b LOS 61.c LOS 61.d LOS 61.e LOS 61.f Answer Key for Module Quizzes Reading 62 Portfolio Risk and Return: Part I Exam Focus Module 62.1: RETURNS MEASURES Average Returns Other Return Measures Module 62.2: RISK AVERSION Module 62.3: portfolio standard deviation Variance (Standard Deviation) of Returns for an Individual Security Covariance and Correlation of Returns for Two Securities Module 62.4: the efficient frontier Key Concepts LOS 62.a LOS 62.b LOS 62.c LOS 62.d LOS 62.e LOS 62.f LOS 62.g LOS 62.h LOS 62.i ANSWER KEY FOR MODULE QUIZZES Reading 63 Portfolio Risk and Return: Part II Exam Focus Module 63.1: Systematic Risk and Beta Systematic Risk Is Relevant in Portfolios Module 63.2: The CAPM and the SML Comparing the CML and the SML Key Concepts LOS 63.a LOS 63.b LOS 63.c LOS 63.d LOS 63.e LOS 63.f LOS 63.g LOS 63.h LOS 63.i Answer Key for Module Quizzes Reading 64 Basics of Portfolio Planning and Construction Exam Focus Module 64.1: Portfolio Planning and Construction Key Concepts LOS 64.a LOS 64.b LOS 64.c LOS 64.d LOS 64.e LOS 64.f LOS 64.g LOS 64.h Answer Key for Module Quizzes Reading 65 The Behavioral Biases of Individuals Exam Focus Module 65.1: Cognitive Errors vs. Emotional Biases Cognitive Errors: Belief Perseverance Cognitive Errors: Information-Processing Biases Module 65.2: Emotional Biases Key Concepts LOS 65.a LOS 65.b LOS 65.c Answer Key for Module Quizzes Reading 66 Introduction to Risk Management Exam Focus Module 66.1: Introduction to Risk Management Subjective and Market-Based Estimates of Risk Modifying Risk Exposures Choosing Among Risk Modification Methods Key Concepts LOS 66.a LOS 66.b LOS 66.c LOS 66.d LOS 66.e LOS 66.f LOS 66.g Answer Key for Module Quizzes Reading 67 Technical Analysis Exam Focus Module 67.1: Technical Analysis Price-Based Indicators Momentum Oscillators Non-Price-Based Indicators Key Concepts LOS 67.a LOS 67.b LOS 67.c LOS 67.d LOS 67.e LOS 67.f LOS 67.g LOS 67.h LOS 67.i Answer Key for Module Quizzes Reading 68 Fintech in Investment Management Exam Focus Module 68.1: Fintech in Investment Management Financial Applications of Distributed Ledger Technology Key Concepts LOS 68.a LOS 68.b LOS 68.c LOS 68.d Answer Key for Module Quizzes Topic Quiz: Portfolio Management Reading 69 Ethics and Trust in the Investment Profession Exam Focus Module 69.1: Ethics and Trust Key Concepts LOS 69.a LOS 69.b LOS 69.c LOS 69.d LOS 69.e LOS 69.f LOS 69.g LOS 69.h Answer Key for Module QUIZZES Reading 70 Code of Ethics and Standards of Professional Conduct Exam Focus Module 70.1: Code and Standards Code of Ethics The Standards of Professional Conduct Standards of Professional Conduct2 Answer Key for Module QUIZZES Reading 71 Guidance for Standards I–VII Exam Focus Module 71.1: Guidance for Standards I(A) and I(B) Standard I: Professionalism1 Standard I(A) Knowledge of the Law Recommendations for Members Recommendations for Firms Standard I(B) Independence and Objectivity Recommendations for Members Recommendations for Firms Module 71.2: Guidance for Standards I(C) and I(D) Standard I(C) Misrepresentation Recommendations for Members Standard I(D) Misconduct Recommendations for Firms Module 71.3: Guidance for Standard II Standard II: Integrity of Capital Markets Standard II(A) Material Nonpublic Information Recommendations for Members Recommendations for Firms Standard II(B) Market Manipulation Module 71.4: Guidance for Standards III(A) and III(B) Standard III: Duties to Clients Standard III(A) Loyalty, Prudence, and Care Recommendations for Members Standard III(B) Fair Dealing Recommendations for Members Recommendations for Firms Module 71.5: Guidance for Standards III(C), III(D), and III(E) Standard III(C) Suitability Unsolicited Trade Requests Recommendations for Members Standard III(D) Performance Presentation Recommendations for Members Standard III(E) Preservation of Confidentiality Recommendations for Members Module 71.6: Guidance for Standard IV Standard IV: Duties to Employers Standard IV(A) Loyalty Recommendations for Members Recommendations for Firms Standard IV(B) Additional Compensation Arrangements Recommendations for Members Recommendations for Firms Standard IV(C) Responsibilities of Supervisors Recommendations for Members Recommendations for Firms Module 71.7: Guidance for Standard V Standard V: Investment Analysis, Recommendations, and Actions Standard V(A) Diligence and Reasonable Basis Recommendations for Members Standard V(B) Communication With Clients and Prospective Clients Recommendations for Members Standard V(C) Record Retention Recommendations for Members Recommendations for Firms Module 71.8: Guidance for Standard VI Standard VI: Conflicts of Interest Standard VI(A) Disclosure of Conflicts Recommendations for Members Standard VI(B) Priority of Transactions Recommendations for Members Recommendations for Firms Standard VI(C) Referral Fees Recommendations for Members Recommendations for Firms Module 71.9: Guidance for Standard VII 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 Recommendations for Members Answer Key for Module QUIZZES Reading 72 Introduction to the Global Investment Performance Standards (GIPS) Exam Focus Module 72.1: Introduction to GIPS Key Concepts LOS 72.a LOS 72.b LOS 72.c LOS 72.d LOS 72.e Answer Key for Module QUIZZES Reading 73 Ethics Application Exam Focus Module 73.1: Ethics Application Standard I: Professionalism Standard I(A) Knowledge of the Law Standard I(B) Independence and Objectivity Standard I(C) Misrepresentation Standard I(D) Misconduct Standard II: Integrity of Capital Markets Standard II(A) Material Nonpublic Information Standard II(B) Market Manipulation 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 Standard IV: Duties to Employers Standard IV(A) Loyalty Standard IV(B) Additional Compensation Arrangements Standard IV(C) Responsibilities of Supervisors Standard V: Investment Analysis, Recommendations, and Actions Standard V(A) Diligence and Reasonable Basis Standard V(B) Communication With Clients and Prospective Clients Standard V(C) Record Retention Standard VI: Conflicts of Interest Standard VI(A) Disclosure of Conflicts Standard VI(B) Priority of Transactions Standard VI(C) Referral Fees 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 Answer Key for Module Quizzes Topic Quiz: Ethical and Professional Standards FORMULAS Index