A-Plus Study Notes -- CFA 2013 Level I Certification: -- A Complete Course of Study for Chartered Financial Analyst -- Samuel J. Gottlieb, CFP, CFA -- www.a-plusstudynotes.com -- APSN -- DISCLAIMER NOTICE: -- To my wife and our fantastic children who we love very much. -- Ethical and Professional Standards -- Investment Tools -- Portfolio Management -- Asset Valuation -- Table of Chapters -- Table of Contents -- STUDY SESSION 1: -- Ethical and Professional Standards -- Reading 1: Code of Ethics and Standards of Professional Conduct -- The candidate should be able to: -- Reading 2: Guidance for Standards I - VII -- The candidate should be able to: -- Reading 3: Introduction to the Global Investment Performance Standards (GIPS) -- Reading 4: Global Investment Performance Standards (GIPS®) -- The candidate should be able to: -- STUDY SESSION 2: -- Quantitative Methods: Basic Concepts -- Reading 5: The Time Value Of Money -- The candidate should be able to: -- Reading 6: Discounted Cash Flow Applications -- The candidate should be able to: -- Reading 7: Statistical Concepts and Market Returns -- The candidate should be able to: -- Reading 8: Probability Concepts -- The candidate should be able to: -- STUDY SESSION 3: -- Quantitative Methods: Applications -- Reading 9: Common Probability Distributions -- The candidate should be able to: -- Reading 10: Sampling and Estimation -- The candidate should be able to: -- Student's t - distribution -- Reading 11: Hypothesis Testing -- The candidate should be able to: -- Reading 12: Technical Analysis -- The candidate should be able to: -- STUDY SESSION 4: -- Economics: Microeconomic Analysis -- Reading 13: Demand and Supply Analysis: Introduction -- The candidate should be able to: -- Reading 14: Demand and Supply Analysis: Consumer Demand -- The candidate should be able to:.

Reading 15: Demand and Supply Analysis: The Firm -- The candidate should be able to: -- Accounting profit is the net income reported on a company's financial statements under rules that have been established by public and private oversight bodies. Accounting profit is also known as net profit, net earnings or net income. -- Reading 16: The Firm and Market Structures -- The candidate should be able to: -- STUDY SESSION 5: -- Economics: Macroeconomic Analysis -- Reading 17: Aggregate Output, Prices, and Economic Growth -- The candidate should be able to: -- Introduction -- Aggregate demand -- Aggregate supply -- Equilibrium -- Reading 18: Understanding Business Cycles -- The candidate should be able to: -- Introduction -- The business cycle -- Types of unemployment -- Consumer Price Index (CPI) -- Reading 19: Monetary and Fiscal Policy -- The candidate should be able to: -- Introduction -- Monetary Base -- Interest rates -- STUDY SESSION 6: -- Economics in a Global Context -- Reading 20: International Trade and Capital Flows -- The candidate should be able to: -- VII. Trade Organizations -- Reading 21: Currency Exchange Rates -- The candidate should be able to: -- STUDY SESSION 7: -- Reading 22: FSA: An Introduction -- The candidate should be able to: -- Reading 23: Financial Reporting Mechanics -- The candidate should be able to: -- Reading 24: Financial Reporting Standards -- The candidate should be able to: -- Financial Reporting and Analysis: An Introduction -- STUDY SESSION 8: -- Financial Reporting and Analysis: Income Statement, Balance Sheet, and Cash Flow Statement -- Reading Assignments -- Reading 25: Understanding the Income Statement -- Learning Outcome Statements (LOS) -- The candidate should be able to: -- Revenue and expense recognition -- Accelerated depreciation methods -- Units-of-production and service hours method -- Depletion.

Amortization -- Nonrecurring items -- Simple capital structure -- Weighted average number of shares -- Complex capital structure -- Convertible securities -- Options and warrants -- Simple capital structure -- Complex capital structure -- Reading 26: Understanding the Balance Sheet -- The candidate should be able to: -- Balance sheet -- Stockholders' equity -- Reading 27: Understanding the Cash Flow Statement -- Learning Outcome Statements (LOS) -- The candidate should be able to: -- Introduction -- Cash flows from operating activities -- Cash flows from investing activities -- Cash flows from financing activities -- "Analysis of Cash Flows" -- Reading 28: Financial Analysis Techniques -- The candidate should be able to: -- Introduction -- Financial information used in Examples 28-1 to 28-7 -- Common-size statements -- Internal liquidity (solvency) -- Operating performance -- Risk analysis -- Growth analysis -- STUDY SESSION 9: -- Financial Reporting and Analysis: Assets Inventories, Long-lived Assets, Income Taxes, and Non-current Liabilities -- Reading 29: Inventories -- The candidate should be able to: -- Financial ratios under LIFO and FIFO -- Inventory Management Issues -- Reading 30: Long-Lived Assets -- The candidate should be able to: -- Reading 31: Income Taxes -- The candidate should be able to: -- Reading 32 Analysis of Financing Liabilities -- The candidate should be able to: -- STUDY SESSION 10: -- Financial Reporting and Analysis: Evaluating Financial Reporting Quality and Other Applications -- Reading 33: Financial Reporting Quality: Red Flags and Accounting Warning Signs -- The candidate should be able to: -- Reading 34: Accounting Shenanigans on the Cash Flow Statement -- The candidate should be able to: -- Reading 35: Financial Statement Analysis: Applications -- The candidate should be able to: -- STUDY SESSION 11:.

Corporate Finance -- Reading 36: Capital Budgeting -- The candidate should be able to: -- Reading 37: The Cost of Capital -- The candidate should be able to: -- Reading 38: Measures of Leverage -- The candidate should be able to: -- Reading 39: Dividends and Share Repurchases: Basics -- The candidate should be able to: -- Reading 40: Working Capital Management -- The candidate should be able to: -- Reading 41: The Corporate Governance of Listed Companies: A Manual for Investors -- The candidate should be able to: -- STUDY SESSION 12: -- Portfolio Management -- Reading 42: Portfolio Management: An Overview -- The candidate should be able to: -- Reading 43: Portfolio Risk and Return: Part I -- The candidate should be able to: -- Reading 44: Portfolio Risk and Return: Part II -- The candidate should be able to: -- Reading 44-: Basics of Portfolio Planning and Construction -- The candidate should be able to: -- STUDY SESSION 13: -- Equity: Market Organization, Market Indices, and Market Efficiency -- Reading 46: Market Organization and Structure -- The candidate should be able to: -- Primary markets -- Reading 47: Security Market Indices -- The candidate should be able to: -- Reading 48: Market Efficiency -- The candidate should be able to: -- STUDY SESSION 14: -- Equity: Analysis and Valuation -- Reading 49: Overview of Equity Securities -- The candidate should be able to: -- Reading 50: Introduction to Industry and Company Analysis -- The candidate should be able to: -- Reading 51: Equity Valuation: Concepts and Basic Tools -- The candidate should be able to: -- Price to earnings (P/E) -- Price to book value (P/BV) -- Price to sales (P/S) -- Price to cash flow (P/CF) -- STUDY SESSION 15: -- Fixed Income: Analysis and Valuation -- Reading 52: Features of Debt Securities -- The candidate should be able to:.

Reading 53: Risks Associated with Investing in Bonds -- The candidate should be able to: -- Reading 54: Overview of Bond Sectors and Instruments -- The candidate should be able to: -- The bond market sectors are classified into the following: -- Internal Bond Market -- (or National Bond Market) -- External Bond Market -- (or more popularly -- the Eurobond market) -- Overview of US Treasury Debt Instruments -- Treasury -- Bills -- Treasury -- Notes -- Treasury -- Bonds -- Fixed-principal -- Treasuries -- Inflation-indexed -- Treasuries (TIPSs) -- Coupon -- Strips -- Principal -- Strips -- Treasury Strips -- (created by private sector) -- US Treasuries -- Motivation for asset securitization -- Reading 55: Understanding Yield Spreads -- The candidate should be able to: -- Introduction -- STUDY SESSION 16: -- Fixed Income: Analysis and Valuation -- Reading 56: Introduction to the Valuation of Debt Securities -- The candidate should be able to: -- Under or overvaluation -- Reading 57: Yield Measures, Spot Rates and Forward Rates -- The candidate should be able to: -- Factors that affect reinvestment risk -- Reading 58: Introduction to the Measurement of Interest Rate Risk -- The candidate should be able to: -- Approximate Percentage Price Change -- Yield curve volatility will have an impact on the interest rate risk of a bond. The more volatile the curve, the more likely that YTMs will vary more in frequency and in amplitude for a given time period. This volatility will cause more uncertainty ... -- Reading 59: Fundamentals of Credit Analysis -- The candidate should be able to: -- STUDY SESSION 17: -- Derivative -- Reading 60: Derivative Markets and Instruments -- The candidate should be able to: -- Reading 61: Forward Markets and Contracts -- The candidate should be able to: -- Reading 62: Futures Markets and Contracts.

The candidate should be able to:.