搜索
CRITICALCONCEPTSFORTHE2014CFA®ExAMETHICALANDPROFESSIONALSTANDARDSProfessionalismKnowledgeoftheLaw,IndependenceandObjectiviryMisrepresentation.Misconduct.InregrityofCapimlMarkersMaterialNonpublicInformation.MarketManipulation.DutiestoClientsLoyalty.Prudence.andCare.FairDealing.Suitability,PerformancePresentation.PreservationofConfidenrialiry,DutiestoEmployersLoyalty.AdditionalCompensationArrangements.ResponsibilitiesofSupervisors.InvestmentAnalysis,Recommendations,andActionV(A)DiligenceandReasonableBasis.V(B)CommunicationwirhClientsandProspectiveClients.RecordRereruion.ConflictsofInterestDisclosureofConflicrs.PriorityofTransacrions.ReferralFees,ResponsibilhiesasaCFAlnstiruteMemberOrCFACandidateVII(A)ConductasMembersandCandidatesintheCFAPrograrn.VII(B)ReferencetoCFAInstitute.theCFADesignation.andtheCFAProgram.GlobalInvestmenrPerformanceStandards(GIPS®)•Compliallcntatnllmr:[Insertnameoffirm)haspreparedandpresentedrhisreporrincompliancewithrheGloballnvesrmenePerformanceStandards(GIPS).Compliancemustbeappliedonafirm-widebasis.•NineS~CliOTU:fundamenralsofcompliance,inputdata.calculationmethodology.compositeconstruction.disclosures.presentationandreponing,realestate,privateequity.andwrapfee/separatelymanagedaccountponfolios.II(A)I(B)I(C)I(D)IIII(A)II(B)IIIIII(A)III(B)III(C)III(D)III(E)IVIV(A)IV(6)IV(C)VV(C)VIVI(A)VI(6)VI(C)VIIQUANTITATIVEMETHODSlimeValueofMoneyBasics•FUNlr(Ult/'IL(FV):amounttowhichinvestmentgrowsafteroneormorecompoundingperiods.•Futureualu«:FY=PV(J+I/Y)'.•Presentualu«(PV):currentvalueofsomefuturecashAowPV=FY/(I+I/Y)N.•Annuities:seriesofequalcashAowsthatOCCuratevenlyspacedintervalsovertime.•Ordinaryannuity:cashAowatmd-of-timeperiod.•Al1IlIIitydue:cashAowatbrginnillg-of-rimeperiod.•Pt'rpel1liliff:annuitieswithinfinitelives.PVI.PMT/(discountrate).RequiredRareofReturnComponents:I.Realrisk-f...:erate(RFR).2.Expectedinflationratepremium(lP).3.Riskpremium.E(R)~(I+RFR...J)(I+IP)(1+RP)-IApproximationformulafornominalrequiredrate:E(R)~RFR+fP+RPMeansArithmeticmean:sumofallobservationvaluesinsample/population.dividedbyIIofobservations.Geometri«mill:usedwhencalculatinginvestmentreturnsovermultipleperiodsorromeasurecompoundgrowthrates.Geonmrir/liMnreturn:R•.1(I+R)x•.(I.R,)]-1Nharmonicmeant[l],IX,VarianceandStandardDeviationl17riallc~:avcrageofsquareddeviationsfrommean.Nl)Xi-ldpopulationvariance:(12_-'i-'I_Nf)x,-x)lsamplevariance_c;2.i_I--_nS,darddeoimion:squarerootofvariance.HoldingPeriodReturn(IIPR)R_P,P,I.D,or1'.+DJ.-I,1',I1',ICoefficientofVariationCo4Jirirllfofvariation(CV):expresseshowmuchdispersionexistsrelativetomeanofadistribution;allowsfordirectcomparisonofdispersionacrossdifferentdatasets.CViscalculatedbydividingstandarddeviationofadistributionbythemeanorexpectedvalueofthedistribution:CV=~XSharpeRatioSbarp«ratio:measuresO:fmreturnperunitofrisk.SharperatiorprtJr~ctRoyislIfi'ty-fimratio:-'----CTpForbothrarios,largerISberrcr,ExpectedReturn/StandardDeviationExprcudreturn:E(X)=2::P(Xi)x.E(X)=P(xi)xl+P(X2)X2+...+P(x.}x.Probabilisticuariance:(12(X)=2::P(x,)lx,-E(X)t=P(X')[:IE(X)]l+p(x2)lx2-E(X)]2+...+p(x.)lx.E(X)]2Standarddruialioll:takesquarerootofvariance.CorrelationandCovarianceCorrelasion:covariancedividedbyproductofthetWOstandarddeviations.()_COV(R,.R1)corrR;,RI-()u{R;}aRiExprctrdreturn,varianceof2-S1ockportfolio:E(Rp)=wE(RA)+wBE(Rs),.ar(Rp)=wl\u!(R\)+w~u2(R8)+2w\w8(7{RA)U(RR)P(R\.Ra)NormalDistributionsNorma]distributioni~completelydescribedbyirsmeanandvariance.68%ofobservationsfallwithint1(1.90%fallwithint1.65095%fallwithint1.960.990fallwithin;t2.58(7.ComputingZ-ScoresL-scol7:standardizesobservarionfromnormaldistribution;represents/Iofstandarddeviationsagivenobservationisfrompopulationmean.Z=observation-populationm~-an=x-I'standarddeviationaBinomialModelsBinamia!distribution:assumesavariablecantakeoneoftWOvalues(success/failure)or.inthecaseofastock,movements(up/down).AbinomialmodelC:1I1describechanges111thevalueofanassetorportfolio;itcanbeusedtocomputeit~expectedvalueoverseveralperiods.SamplingDistributionSampllIIgdistribution.probabilitydistributionofallpossiblesampleS{d{IStlCcomputedfromasetofequal-sizesamplesrandomlydrawnfromthesamepopulation.Thesamplillgdistributionof'''~meanisthedistributionofestimatesofthemean.CentrallimitTheoremCentrallimittheorem:whenselectingsimplerandomsamplesofsize11fromPOplntiOIlwithmeanIIandfinitevarianceCT1,thesamplingdistriburionofsamplemeanapproachesnormalprobabilitydistributionwithmeanItandvarianceequalto0'1/11asthesamplesizebecomeslarge.StandardErrorSl,l1ItUlrdfTTOrofIIwmpl~meani,thesrandarddevurionofdisrriburionofthesamplemeans.knownpopulationvariance:(1,(1Tnunknownpopulationvariance:s,ConfidenceIntervalsCollfitUncrinterual:givesrangeofvaluesthemeanvaluewillbebetween.withagivenprobability(say90%or95%).Withknownvariance.formulaforaconfidenceintervalis:_(1x±zt2FnL,:1.645for90%confidenceintervals(significancelevel10%.5%ineachtail)zn)1.960for95%confidenceintervals(significancelevel5°0.2.5%ineachtail)l,~2.575for99Cl'Oconfidenceintervals(significJncelevel10,0,0.5%ineachrai