1、Page 1 of 158 CFA level 1 notes 声明：本资源系楼主本人整理，仅供学习，禁止商业用途！ Contents Book 1 Ethics and Professional Standards and Quantitative Methods . 3 Reading 1 . 3 Standard : Professionalism . 3 Standard : Integrity of Capital Markets . 6 Standard : Duties to Clients. 7 Standard : Duties to Employers.10 Standar
2、d Investment Analysis, recommendations and actions 12 Standard : Conflicts of Interest 15 Standard : Responsibilities as CFA Institute Member or Candidate .16 Reading 4 Introduction to GIPS .17 Reading 5 The time value of the money .20 Reading 6 Discounted Cash Flow Applications .20 Reading 7 Statis
3、tical Concepts and Market Returns 21 Reading 8 Probability Concepts 22 Reading 9 Common Probability Distribution23 Reading 10 Sampling and estimates .23 Reading 11 Hypothesis Testing .25 Reading 12 Technical Analysis .27 Book 2 Economics 29 Reading 13 Demand and Supply Analysis: Introduction 29 Read
4、ing 14 Demand and Supply Analysis: Consumer Demand 33 Reading 15 Demand and Supply Analysis: The firm 35 Reading 16 The firm and Market Structures .40 Reading 17 Aggregate Output, Prices, and Economic growth 45 Reading 18 Understanding Business Cycle 52 Reading 19 Monetary and Fiscal Policy .57 Read
5、ing 20 International Trade and Capital Flows 62 Reading 21 Currency Exchange Rates.66 Book 3 Financial Reporting and Analysis . 69 Reading 22 Financial statement analysis: An Introduction 69 Reading 23 Financing Reporting Mechanics .70 Reading 24 Financial Reporting Standards71 Reading 25 Understand
6、ing Income Statements.73 Reading 26 Understanding Balance Sheets76 Reading 27 Understanding Cash Flow Statements .79 Page 2 of 158 Reading 28 Financial Analysis Techniques 81 Reading 29 Inventories .82 Reading 30 Long-lived Assets .84 Reading 31 Income Taxes .87 Reading 32 Non-Current Liabilities .9
7、0 Reading 33 Financial Reporting Quality: Red Flags and Accounting Warning Signs .95 Reading 34 Accounting Shenanigans on the Cash Flow Statement .97 Reading 35 Financial Statement Analysis: Applications 98 Book 4 Corporate Finance, Portfolio Management and Equity Investment100 Reading 36 Capital Bu
8、dgeting . 100 Reading 37 Cost of Capital 101 Reading 38 Measure of leverage 104 Reading 39 Dividends and share repurchase basics. 104 Reading 40 Working Capital Management 105 Reading 41 the Corporate Governance of Listed Companies 107 Reading 42 Portfolio Management: An Overview 109 Reading 43 Port
9、folio risk and return: Part 1 111 Reading 44 Portfolio risk and return: Part 2 112 Reading 45 Basics of portfolio planning and construction 114 Reading 46 Market organization and structure 115 Reading 47 Security Market Indices. 120 Reading 48 Market Efficiency 122 Reading 49 Overview of Equity Secu
10、rities . 125 Reading 50 Introduction to Industry and Company analysis 128 Reading 51 Equity valuation 131 Book 5 Fixed Income, Derivatives, and alternative investments 133 Reading 52 Fixed-income securities: Defining Elements . 133 Reading 53 Fixed-income Markets: Issuance, Trading, and Funding 136
11、Reading 54 Introduction to Fixed Income Valuation 138 Reading 55 Understanding Fixed-Income Risk and Return 140 Reading 56 Fundamentals of credit analysis 142 Reading 57 Derivative Markets and Instruments 146 Reading 58 Forward Markets and Contracts 147 Reading 59 Future Markets and Contracts 148 Re
12、ading 60 Option Markets and Contracts 150 Reading 61 Swap Markets and Contracts . 151 Reading 62 Risk Management Applications of Option Strategies . 152 Reading 63 Introduction to Alternative Investments . 153 Page 3 of 158 Book 1 Ethics and Professional Standards and Quantitative Methods Tips: 答案中违
13、反两种规则的，倾向于选择只违反一个规则的选项。 Reading 1 CFA institute Professional Conduct Program Inquiry can be prompted by: 1) Self-disclosure 2) Written complaints 3) Evidence of misconduct 4) Report by a CFA exam proctor The designated officer may decide: 1) No disciplinary sanctions are appropriate 2) To issue a ca
14、utionary letter 3) To discipline the member or candidate If the candidate does not accept the proposed sanction, the matter is referred to a hearing panel composed of hearing panel. Sanctions may include condemnation by members peers or suspension of candidates participation in the CFA program The c
15、ode of ethics Six components: 1) Act in an ethical manner 2) Integrity is paramount and clients always come first 3) Use reasonable care; be independent 4) Be a credit to the investment profession 5) Uphold capital market rules and regulations 6) Be competent Standard : Professionalism A. Knowledge
16、of the Law 1) Understand and comply with all laws, rules, and regulations (including Code and Standards) of any government, regulatory agency, or association governing professional activities 2) Comply with more strict law, rule, and regulation 3) Do not knowingly assist in violation, otherwise diss
17、ociate from activity. Page 4 of 158 Guidance 1) Most strict 2) First, notify supervisor or compliance 3) May confront wrongdoer directly 4) Dissociate if necessary 5) Inaction may be construed as participation (不行动是不对的 ) 6) No requirement to report violations to governmental authorities, but this ma
18、y be appropriate in certain cases Recommended Procedures 1) Keep informed, regularly review written compliance procedures, maintain files 2) Seek compliance/legal advice as needed 3) Encourage firms to adopt code of ethics 4) Distribute information internally on applicable laws and regulations 5) Ha
19、ve written procedures for reporting suspected violations 6) Members strongly encouraged to report violations by other members 对其他成员要检举揭发 B. Independence and Objectivity 1) Use reasonable care, judgment to achieve and maintain independence in professional activities 2) Do not offer, solicit, or accep
20、t any compensation that could compromise independence or objectivity 旅行，豪华餐饮等 Guidance 1) Modest gifts okay 尽管如此，但大部分也要拒绝 2) Distinguish between gifts from clients and gifts from entities trying to influence a members behavior 3) May accept gift from clients-disclose to employer-get permission if gi
21、ft is for future. When possible, prior to accepting “bonuses” or gifts from clients, members should disclose to employers such benefits offered by clients. If notification is not possible prior to acceptance, members must disclose to employers benefits previously accepted from clients. 4) Members re
22、sponsible for hiring outside managers should not accept travel, gifts, or entertainment that could impair their objectivity 5) Investment banking relationships-do not bow to pressure to issue favorable research 投行 部门压力 6) For issuer-paid research, flat fee structure is preferred; must disclose 7) Me
23、mbers working for credit rating firms should avoid influence by issuing firms 8) Users of credit ratings should be aware of this potential conflict 9) Best practice is for analysts to pay for their own commercial travel to firms being analyzed or to firm events Page 5 of 158 Recommended Procedures 1
24、) Protect integrity of options - reports should reflect unbiased opinion 2) Create a restricted list 3) Restrict special cost arrangements 4) Limit gifts; clear value limits by firm (最多能够接受多少钱的礼物 ) 5) Be careful with IPO share allocations C. Misrepresentation Do not make misrepresentations relating
25、to investment analysis, recommendations, actions, or other professional activities A mispresentation is any untrue or omission of a fact or any statement that is otherwise false or misleading. Guidance 1) Standard covers oral, written, or electronic communications 2) Do not misrepresent qualificatio
26、ns, services of self or firm, or performance record, characteristics of an investment 3) Do not guarantee a certain return 4) No plagiarism-written, oral, or electronic communications Recommended Procedures 1) Firms can assist employees by providing written list of the firms available services and a
27、 description of the firms qualifications 2) Maintain records of materials used to prepare research reports, and quote source, except for “recognized financial and statistical reporting services“. 比如 Bloomberg或者很知名的 官网 ,比如 US treasury Website. 3) Models and analysis of others at the firm may be used
28、without attribution可以随便引用公司同事的分析 ; but the report written by another analysts employed by the firms cannot be used as another analysts work. 4) Should encourage firm to establish procedures for verifying marketing claims of third parties recommended to clients D. Misconduct (Mummys rule) Do not enga
29、ge in any professional conduct involving dishonesty, fraud, deceit, or commit any act that reflects adversely on professional reputation, integrity, or competence. Fail to act when required by ones professional obligations, such as neglecting to perform due diligence related to investment recommenda
30、tions, violates Misconduct. Guidance Page 6 of 158 This Standard covers conduct that may not be illegal, but could adversely affect a members ability to perform duties Recommended Procedures 1) Adopt a code of ethics to which every employee must adhere 2) Disseminate a list of potential violations a
31、nd associated disciplinary sanctions 3) Conduct background checks on potential employees - look for good character and eligibility to work in the investment industry Standard : Integrity of Capital Markets A. Material Nonpublic Information Members in possession of nonpublic information that could af
32、fect an investments value must not act or cause someone else to act on the information Guidance 1) “Material“一 if disclosure of information would affect a securitys price or if an investor would want to know before making an investment decision 2) If price effect is ambiguous, information may not be
33、 considered material 3) Extends to info such as upcoming rating change, influential analysis to be released 4) Information is nonpublic until it has been made available to the marketplace. 比如 CFO告诉你的信息就属于 material nonpublic. 5) Information made available to analysts in the conference call is conside
34、red nonpublic until it is made available to investors in general 6) “Act“ includes related swaps and options, mutual funds with the security 7) If you possess material non-public information, act as you would if you did not know 提干中的“ rumor”即可能设计到 mosaic theory 8) Mosaic Theory no violation when an
35、analyst combines non-material non-public information with public information to reach conclusion Recommended Procedures 1) Information barrier or “firewall“ is recommended to control interdepartmental communications 2) Information barrier includes use of restricted list 3) Review employee trades 4)
36、Increase review/restrict proprietary trading while firm is in possession of material nonpublic information B. Market Manipulation Do not engage in practices that distort prices or artificially inflate trading volume with intent to mislead market participants Page 7 of 158 Guidance 1) Do not engage i
37、n transaction-based manipulation-give false impression of activity/price movement; gain dominant position in an asset to manipulate price of the asset or a related derivative 2) Do not distribute false, misleading information Standard : Duties to Clients A. Loyalty, Prudence, and Care 忠诚，审慎，尽心尽职 1)
38、Duty of loyalty to clients-act with reasonable care and exercise prudent judgment 2) Act for benefit of clients and place their interests before employers or own interests 3) Determine and comply with any applicable fiduciary duty Guidance 1) Take investment actions in clients best interests 执行对客户有利
39、 的投资决定 2) Exercise prudence, care, skill, and diligence that a person familiar with such matters would use 3) Follow applicable fiduciary duty 4) “Client“ may be investing public 5) Manage pools of client assets according to terms of governing documents 6) Make investment decisions in context of tot
40、al portfolio 7) Vote proxies responsibly and disclose proxy voting policies to clients 8) “Soft dollars“ must benefit client (brokerage fee is clients money, broker will give something back, which is called “soft dollars”) Recommended Procedures 1) Follow rules and laws 2) Establish client investmen
41、t objectives 3) Diversify 4) Deal fairly with clients-investment actions 5) Disclose all possible conflicts 6) Vote proxies in best interest of clients and ultimate beneficiaries 7) Keep client information confidential 8) Seek best trading execution for clients 9) Place client interests first B. Fai
42、r Dealing Deal fairly and objectively with all clients when: Providing investment analysis Making investment recommendations Taking investment action Engaging in other professional activities Page 8 of 158 Guidance 1) No discrimination against any clients when disseminating investment recommendation
43、s or taking investment action 2) Fair does not mean equal 3) Different levels of service are okay as long as disclosed and do not disadvantage any clients 4) Investment recommendations: All clients must have fair chance to act on every recommendation If client is unaware of recommendation change, ad
44、vise before accepting trade order 5) Investment actions: Treat all clients fairly-consider investment objectives and circumstances Disclose written allocation procedures Do not disadvantage any clients when distributing “hot“ issues 不管 new or old账户，一视同仁 Recommended Procedures 1) Limit number of peop
45、le aware of upcoming changes 2) Shorten time frame-decision to dissemination 3) Have pre-dissemination guidelines 4) Simultaneous dissemination 5) Maintain list of clients and their holdings 6) Disclose trade allocation procedures 7) Review accounts regularly to ensure fair client treatment 8) If fi
46、rm offers different levels of service, disclose this fact to all clients 9) Deviations from strict pro rata allocation of IPO are sometimes okay (e.g., minimum block sizes) Include allocating pro rata on the basis of order size, not account size. All clients participating in the block trade should r
47、eceive the same execution price and be charged the same commission. 当自己 buy sell 和团队意见不一致，不能 selective disclosure 自己的意见 C. Suitability When in advisory relationship with a client: 1) Make reasonable inquiry as to clients investment experience, risk/return objectives, financial constraints prior to m
48、aking any recommendation, or taking investment action 2) Update information regularly 3) Ensure investment is suitable to clients situation and consistent with written objectives before recommending an investment or taking investment action 4) Look at suitability in a portfolio context Page 9 of 158
49、 5) When responsible for managing a portfolio to a specific mandate, strategy, or style, only make recommendations or take investment actions that are consistent with the stated objectives and constraints of the portfolio Guidance 1) When in advisory relationship, gather client information at the outset and prepare IPS (investment policy statement) 2) Update IPS at least annually 3) Consider whether leverage (derivatives) is suitable for client 4) If managing a fund to an index or other mandate, invest according to mandate Recommended Procedur
