Foreword by Pamela Peterson Drake, PhD, CFA ix
Study Session 1 Ethics 1
Reading 1 Code of Ethics and Standards of Professional Conduct 3
Reading 2 Guidance for Standards I–VII 6
Reading 3 Introduction to the Global Investment Performance Standards 8
Reading 4 Introduction to the Global Investment Performance Standards 11
Study Session 2 Quantitative Methods: Basic Concepts 13
Reading 5 The Time Value of Money 15
Reading 6 Discounted Cash Flow Applications 19
Reading 7 Statistical Concepts and Market Returns 22
Reading 8 Probability Concepts 26
Study Session 3 Quantitative Methods: Application 31
Reading 9 Common Probability Distributions 33
Reading 10 Sampling and Estimation 37
Reading 11 Hypothesis Testing 40
Reading 12 Technical Analysis 45
Study Session 4 Economics 49
Reading 13 Demand and Supply Analysis: Introduction 51
Reading 14 Demand and Supply Analysis: Consumer Demand 56
Reading 15 Demand and Supply Analysis: The Firm 58
Reading 16 The Firm and Market Structures 62
Study Session 5 Economics 67
Reading 17 Aggregate Output, Prices, and Economic Growth 69
Reading 18 Understanding Business Cycles 73
Reading 19 Monetary and Fiscal Policy 77
Study Session 6 Economics 81
Reading 20 International Trade and Capital Flows 83
Reading 21 Currency Exchange Rates 86
Study Session 7 Financial Reporting and Analysis 89
Reading 22 Financial Statement Analysis: An Introduction 93
Reading 23 Financial Reporting Mechanics 96
Reading 24 Financial Reporting Standards 101
Study Session 8 Financial Reporting and Analysis 105
Reading 25 Understanding Income Statements 107
Reading 26 Understanding Balance Sheets 112
Reading 27 Understanding Cash Flow Statements 116
Reading 28 Financial Analysis Techniques 122
Study Session 9 Financial Reporting and Analysis 127
Reading 29 Inventories 129
Reading 30 Long-lived Assets 133
Reading 31 Income Taxes 138
Reading 32 Non-current (Long-term) Liabilities 142
Study Session 10 Financial Reporting and Analysis 149
Reading 33 Financial Reporting Quality: Red Flags and Accounting Warning Signs 151
Reading 34 Accounting Shenanigans on the Cash Flow Statement 153
Reading 35 Financial Statement Analysis: Applications 154
Study Session 11 Corporate Finance 157
Reading 36 Capital Budgeting 159
Reading 37 Topics in Cost of Capital Estimation 163
Reading 38 Measures of Leverage 168
Reading 39 Dividends and Share Repurchases: Basics 170
Reading 40 Working Capital Management 173
Reading 41 Financial Statement Analysis 178
Reading 42 The Corporate Governance of Listed Companies: A Manual for Investors 180
Study Session 12 Portfolio Management 183
Reading 43 Portfolio Management: An Overview 185
Reading 44 Portfolio Risk and Return: Part I 187
Reading 45 Portfolio Risk and Return: Part II 192
Reading 46 Basics of Portfolio Planning and Construction 196
Study Session 13 Equity 199
Reading 47 Equity Markets and Analysis 201
Reading 48 Equity Markets and Analysis 206
Reading 49 Equity Markets and Analysis 209
Study Session 14 Equity 213
Reading 50 Overview of Equity Securities 215
Reading 51 Introduction to Industry and Company Analysis 218
Reading 52 Equity Valuation: Concepts and Basic Tools 221
Study Session 15 Fixed Income 225
Reading 53 Features of Debt Securities 227
Reading 54 Risks Associated with Investing in Bonds 231
Reading 55 Overview of Bond Sectors and Instruments 236
Reading 56 Understanding Yield Spreads 241
Study Session 16 Fixed Income 245
Reading 57 Introduction to the Valuation of Debt Securities 247
Reading 58 Yield Measures, Spot Rates, and Forward Rates 252
Reading 59 Introduction to the Measurement of Interest Rate Risk 257
Study Session 17 Derivatives 263
Reading 60 Derivative Markets and Instruments 265
Reading 61 Forward Markets and Contracts 268
Reading 62 Futures Markets and Contracts 272
Reading 63 Option Markets and Contracts 276
Reading 64 Swap Markets and Contracts 282
Reading 65 Risk Management Applications of Option Strategies 285
Study Session 18 Alternative Investments 287
Reading 66 Alternative Investments 289
Reading 67 Investing in Commodities 295
Answers to Sample Questions 297
Index 317
