{"id":7902,"date":"2019-03-20T15:36:00","date_gmt":"2019-03-20T15:36:00","guid":{"rendered":"https:\/\/analystprep.com\/blog\/?p=7902"},"modified":"2025-09-26T08:59:53","modified_gmt":"2025-09-26T08:59:53","slug":"cfa-level-1-curriculum-changes-from-2018-to-2019","status":"publish","type":"post","link":"https:\/\/analystprep.com\/blog\/cfa-level-1-curriculum-changes-from-2018-to-2019\/","title":{"rendered":"Level I CFA\u00ae Program Curriculum Changes from 2018 to 2019"},"content":{"rendered":"<p>For 2019, the major change is the addition of one reading&nbsp;\u2013 Fintech&nbsp;\u2013 in the Portfolio Management study session. This reading summarizes new technologies in the investment world such as big data, machine&nbsp;learning, distributed&nbsp;ledgers, and even Bitcoin.<\/p>\n<blockquote class=\"wp-embedded-content\" data-secret=\"YPPuuPVBS7\"><p><a href=\"https:\/\/analystprep.com\/shop\/all-3-levels-of-the-cfa-exam-complete-course-by-analystprep\/\">All 3 Levels of the CFA Exam &#8211; Complete Course offered by AnalystPrep<\/a><\/p><\/blockquote>\n<p><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;All 3 Levels of the CFA Exam &#8211; Complete Course offered by AnalystPrep&#8221; &#8212; AnalystPrep\" src=\"https:\/\/analystprep.com\/shop\/all-3-levels-of-the-cfa-exam-complete-course-by-analystprep\/embed\/#?secret=lm0Y9ujzB2#?secret=YPPuuPVBS7\" data-secret=\"YPPuuPVBS7\" width=\"600\" height=\"338\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><\/p>\n<p><!--more--><\/p>\n<p>There has also been the deletion of the Financial Reporting Mechanics reading, which should not have a material impact for candidates re-taking the exam in 2019.<\/p>\n<p>The area weights have also changed slightly. Most candidates will be happy to see that Financial Reporting and Analysis is now worth 5% less in the exam:<\/p>\n<table>\n<tbody>\n<tr>\n<th>TOPIC<br \/>\nAREA<\/th>\n<th>2019<\/th>\n<th>2018<\/th>\n<\/tr>\n<tr>\n<td>Ethics &amp; Professional Standards<\/td>\n<td>15%<\/td>\n<td>15%<\/td>\n<\/tr>\n<tr>\n<td>Quantitative Methods<\/td>\n<td><span style=\"color: #ff0000;\"><strong>10%<\/strong><\/span><\/td>\n<td><span style=\"color: #ff0000;\"><strong>12%<\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td>Economics<\/td>\n<td>10%<\/td>\n<td>10%<\/td>\n<\/tr>\n<tr>\n<td>Financial Reporting &amp; Analysis<\/td>\n<td><span style=\"color: #ff0000;\"><strong>15%<\/strong><\/span><\/td>\n<td><span style=\"color: #ff0000;\"><strong>20%<\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td>Corporate Finance<\/td>\n<td><span style=\"color: #339966;\"><strong>10%<\/strong><\/span><\/td>\n<td><span style=\"color: #339966;\"><strong>7%<\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td>Equity Investments<\/td>\n<td><span style=\"color: #339966;\"><strong>11%<\/strong><\/span><\/td>\n<td><span style=\"color: #339966;\"><strong>10%<\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td>Fixed Income<\/td>\n<td><span style=\"color: #339966;\"><strong>11%<\/strong><\/span><\/td>\n<td><span style=\"color: #339966;\"><strong>10%<\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td>Derivative Investments<\/td>\n<td><span style=\"color: #339966;\"><strong>6%<\/strong><\/span><\/td>\n<td><span style=\"color: #339966;\"><strong>5%<\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td>Alternative Investments<\/td>\n<td><span style=\"color: #339966;\"><strong>6%<\/strong><\/span><\/td>\n<td><span style=\"color: #339966;\"><strong>4%<\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td>Portfolio Management &amp; Wealth Management<\/td>\n<td><span style=\"color: #ff0000;\"><strong>6%<\/strong><\/span><\/td>\n<td><span style=\"color: #ff0000;\"><strong>7%<\/strong><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Apart from that, here are some LOS changes that the candidate should take into account while preparing for the exam. (Deletions are in red and additions are in green.)<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/analystprep.com\/blog\/cfa-level-1-curriculum-changes-from-2018-to-2019\/#Reading_22_%E2%80%93_Financial_Reporting_Mechanics_deleted\" >Reading 22 &#8211; Financial Reporting Mechanics (deleted)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/analystprep.com\/blog\/cfa-level-1-curriculum-changes-from-2018-to-2019\/#2018_Curriculum\" >2018 Curriculum<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/analystprep.com\/blog\/cfa-level-1-curriculum-changes-from-2018-to-2019\/#2019_Curriculum\" >2019 Curriculum<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/analystprep.com\/blog\/cfa-level-1-curriculum-changes-from-2018-to-2019\/#Reading_10_%E2%80%93_Common_Probability_Distributions\" >Reading 10 \u2013 Common Probability Distributions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/analystprep.com\/blog\/cfa-level-1-curriculum-changes-from-2018-to-2019\/#Reading_20_%E2%80%93_Currency_Exchange_Rates\" >Reading 20 &#8211; Currency Exchange Rates<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/analystprep.com\/blog\/cfa-level-1-curriculum-changes-from-2018-to-2019\/#Reading_40_%E2%80%93_Portfolio_Risk_and_Return_Part_II\" >Reading 40&nbsp; &#8211; Portfolio Risk and Return Part II<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/analystprep.com\/blog\/cfa-level-1-curriculum-changes-from-2018-to-2019\/#Reading_43_%E2%80%93_Fintech_in_Investment_Management\" >Reading 43&nbsp; &#8211; Fintech in Investment Management<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/analystprep.com\/blog\/cfa-level-1-curriculum-changes-from-2018-to-2019\/#Reading_49_%E2%80%93_Equity_Valuation_%E2%80%93_Concepts_and_Basic_Tools\" >Reading 49 &#8211; Equity Valuation &#8211; Concepts and Basic Tools<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/analystprep.com\/blog\/cfa-level-1-curriculum-changes-from-2018-to-2019\/#Reading_51_%E2%80%93_Fixed_Income_Markets_Issuance_Trading_and_Funding\" >Reading 51 &#8211; Fixed Income Markets: Issuance, Trading, and Funding<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/analystprep.com\/blog\/cfa-level-1-curriculum-changes-from-2018-to-2019\/#Reading_52_Introduction_to_Fixed_Income_Valuation\" >Reading 52: Introduction to Fixed Income Valuation<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h4><span class=\"ez-toc-section\" id=\"Reading_22_%E2%80%93_Financial_Reporting_Mechanics_deleted\"><\/span><span style=\"color: #ff0000;\">Reading 22 &#8211; Financial Reporting Mechanics (deleted)<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<table width=\"1218\">\n<tbody>\n<tr>\n<td>\n<h3><span class=\"ez-toc-section\" id=\"2018_Curriculum\"><\/span>2018 Curriculum<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/td>\n<td>\n<h3><span class=\"ez-toc-section\" id=\"2019_Curriculum\"><\/span>2019 Curriculum<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<h4><span class=\"ez-toc-section\" id=\"Reading_10_%E2%80%93_Common_Probability_Distributions\"><\/span>Reading 10 \u2013 Common Probability Distributions<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td>LOS 10a: define a probability distribution and distinguish between discrete and continuous random variables and their probability functions<\/td>\n<td>LOS 10a: define a probability distribution and distinguish between discrete and continuous random variables and their probability functions<\/td>\n<\/tr>\n<tr>\n<td>LOS 10b: describe the set of possible outcomes of a specified discrete random variable<\/td>\n<td>LOS 10b: describe the set of possible outcomes of a specified discrete random variable<\/td>\n<\/tr>\n<tr>\n<td>LOS 10c: interpret a cumulative distribution function<\/td>\n<td>LOS 10c: interpret a cumulative distribution function<\/td>\n<\/tr>\n<tr>\n<td>LOS 10d: calculate and interpret probabilities for a random variable, given its cumulative distribution function<\/td>\n<td>LOS 10d: calculate and interpret probabilities for a random variable, given its cumulative distribution function<\/td>\n<\/tr>\n<tr>\n<td>LOS 10e: define a discrete uniform random variable, a Bernoulli random variable, and a binomial random variable<\/td>\n<td>LOS 10e: define a discrete uniform random variable, a Bernoulli random variable, and a binomial random variable<\/td>\n<\/tr>\n<tr>\n<td>LOS 10f: calculate and interpret probabilities given the discrete uniform and the binomial distribution functions<\/td>\n<td>LOS 10f: calculate and interpret probabilities given the discrete uniform and the binomial distribution functions<\/td>\n<\/tr>\n<tr>\n<td>LOS 10g: construct a binomial tree to describe stock price movement<\/td>\n<td>LOS 10g: construct a binomial tree to describe stock price movement<\/td>\n<\/tr>\n<tr>\n<td><span style=\"color: #ff0000;\"><em><strong>LOS 10h: calculate and interpret tracking error<\/strong><\/em><\/span><\/td>\n<td>LOS 10h: define the continuous uniform distribution and calculate and interpret probabilities, given a continuous uniform distribution<\/td>\n<\/tr>\n<tr>\n<td>LOS 10i: define the continuous uniform distribution and calculate and interpret probabilities, given a continuous uniform distribution<\/td>\n<td>LOS 10i: explain the key properties of the normal distribution<\/td>\n<\/tr>\n<tr>\n<td>LOS 10j: explain the key properties of the normal distribution<\/td>\n<td>LOS 10j: distinguish between a univariate and a multivariate distribution and explain the role of correlation in the multivariate normal distribution<\/td>\n<\/tr>\n<tr>\n<td>LOS 10k: distinguish between a univariate and a multivariate distribution and explain the role of correlation in the multivariate normal distribution<\/td>\n<td>LOS 10k: determine the probability that a normally distributed random variable lies inside a given interval<\/td>\n<\/tr>\n<tr>\n<td>LOS 10l: determine the probability that a normally distributed random variable lies inside a given interval<\/td>\n<td>LOS 10l: define the standard normal distribution, explain how to standardize a random variable, and calculate and interpret probabilities using the standard normal distribution<\/td>\n<\/tr>\n<tr>\n<td>LOS 10m: define the standard normal distribution, explain how to standardize a random variable, and calculate and interpret probabilities using the standard normal distribution<\/td>\n<td>LOS 10m: define shortfall risk, calculate the safety-first ratio, and select an optimal portfolio using Roy\u2019s safety-first criterion<\/td>\n<\/tr>\n<tr>\n<td>LOS 10n: define shortfall risk, calculate the safety-first ratio, and select an optimal portfolio using Roy\u2019s safety-first criterion<\/td>\n<td>LOS 10n: explain the relationship between normal and lognormal distributions and why the lognormal distribution is used to model asset prices<\/td>\n<\/tr>\n<tr>\n<td>LOS 10o: explain the relationship between normal and lognormal distributions and why the lognormal distribution is used to model asset prices<\/td>\n<td>LOS 10o: distinguish between discretely and continuously compounded rates of return and calculate and interpret a continuously compounded rate of return, given a specific holding period return<\/td>\n<\/tr>\n<tr>\n<td>LOS 10p: distinguish between discretely and continuously compounded rates of return and calculate and interpret a continuously compounded rate of return, given a specific holding period return<\/td>\n<td>LOS 10p: explain Monte Carlo simulation and describe its applications and limitations<\/td>\n<\/tr>\n<tr>\n<td>LOS 10q: explain Monte Carlo simulation and describe its applications and limitations<\/td>\n<td>LOS 10q: compare Monte Carlo simulation and historical simulation<\/td>\n<\/tr>\n<tr>\n<td>LOS 10r: compare Monte Carlo simulation and historical simulation<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td>\n<h4><span class=\"ez-toc-section\" id=\"Reading_20_%E2%80%93_Currency_Exchange_Rates\"><\/span>Reading 20 &#8211; Currency Exchange Rates<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td>LOS20a: define an exchange rate and distinguish between nominal and real exchange rates and spot and forward exchange rates<\/td>\n<td>LOS20a: define an exchange rate and distinguish between nominal and real exchange rates and spot and forward exchange rates<\/td>\n<\/tr>\n<tr>\n<td>&nbsp;LOS20b: describe functions of and participants in the foreign exchange market<\/td>\n<td>&nbsp;LOS20b: describe functions of and participants in the foreign exchange market<\/td>\n<\/tr>\n<tr>\n<td>LOS20c: calculate and interpret the percentage change in a currency relative to another currency<\/td>\n<td>LOS20c: calculate and interpret the percentage change in a currency relative to another currency<\/td>\n<\/tr>\n<tr>\n<td>LOS20d: calculate and interpret currency cross-rates<\/td>\n<td>LOS20d: calculate and interpret currency cross-rates<\/td>\n<\/tr>\n<tr>\n<td>LOS20e: convert forward quotations expressed on a points basis or in percentage terms into an outright forward quotation<\/td>\n<td>LOS20e: convert forward quotations expressed on a points basis or in percentage terms into an outright forward quotation<\/td>\n<\/tr>\n<tr>\n<td>&nbsp;LOS20f: explain the arbitrage relationship between spot rates, forward rates, and interest rates<\/td>\n<td>&nbsp;LOS20f: explain the arbitrage relationship between spot rates, forward rates, and interest rates<\/td>\n<\/tr>\n<tr>\n<td>&nbsp;LOS20g: calculate and interpret a forward discount or premium<\/td>\n<td>&nbsp;LOS20g: calculate and interpret a forward discount or premium<\/td>\n<\/tr>\n<tr>\n<td>LOS20h: calculate and interpret the forward rate consistent with the spot rate and the interest rate in each currency<\/td>\n<td>LOS20h: calculate and interpret the forward rate consistent with the spot rate and the interest rate in each currency<\/td>\n<\/tr>\n<tr>\n<td>LOS20i: describe exchange rate regimes<\/td>\n<td>LOS20i: describe exchange rate regimes<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><span style=\"color: #339966;\"><em><strong>LOS 20j: explain the effects of exchange rates on countries\u2019 international trade and capital flows<\/strong><\/em><\/span><\/td>\n<\/tr>\n<tr>\n<td>\n<h4><span class=\"ez-toc-section\" id=\"Reading_40_%E2%80%93_Portfolio_Risk_and_Return_Part_II\"><\/span>Reading 40&nbsp; &#8211; Portfolio Risk and Return Part II<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td>LOS 40a: describe the implications of combining a risk-free asset with a portfolio of risky assets<\/td>\n<td>LOS 41a: describe the implications of combining a risk-free asset with a portfolio of risky assets<\/td>\n<\/tr>\n<tr>\n<td>&nbsp;LOS 40b: explain the capital allocation line (CAL) and the capital market line (CML)<\/td>\n<td>&nbsp;LOS 41b: explain the capital allocation line (CAL) and the capital market line (CML)<\/td>\n<\/tr>\n<tr>\n<td>&nbsp;LOS 40c: explain systematic and nonsystematic risk, including why an investor should not expect to receive additional return for bearing nonsystematic risk<\/td>\n<td>&nbsp;LOS 41c: explain systematic and nonsystematic risk, including why an investor should not expect to receive additional return for bearing nonsystematic risk<\/td>\n<\/tr>\n<tr>\n<td>&nbsp;LOS 40d: explain return generating models (including the market model) and their uses<\/td>\n<td>&nbsp;LOS 41d: explain return generating models (including the market model) and their uses<\/td>\n<\/tr>\n<tr>\n<td>&nbsp;LOS 40e: calculate and interpret beta<\/td>\n<td>&nbsp;LOS 41e: calculate and interpret beta<\/td>\n<\/tr>\n<tr>\n<td>LOS 40f: explain the capital asset pricing model (CAPM), including its assumptions, and the security market line (SML)<\/td>\n<td>LOS 41f: explain the capital asset pricing model (CAPM), including its assumptions, and the security market line (SML)<\/td>\n<\/tr>\n<tr>\n<td>&nbsp;LOS 40g: calculate and interpret the expected return of an asset using the CAPM<\/td>\n<td>&nbsp;LOS 41g: calculate and interpret the expected return of an asset using the CAPM<\/td>\n<\/tr>\n<tr>\n<td>&nbsp;LOS 40h: describe and demonstrate applications of the CAPM and the SML<\/td>\n<td>&nbsp;LOS 41h: describe and demonstrate applications of the CAPM and the SML<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><span style=\"color: #339966;\"><em><strong>LOS 41i: calculate and interpret the Sharpe ratio, Treynor ratio, M2, and Jensen\u2019s alpha<\/strong><\/em><\/span><\/td>\n<\/tr>\n<tr>\n<td>\n<h4><span class=\"ez-toc-section\" id=\"Reading_43_%E2%80%93_Fintech_in_Investment_Management\"><\/span>Reading 43&nbsp; &#8211; Fintech in Investment Management<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><em><strong><span style=\"color: #339966;\">LOS 43a: <\/span><\/strong><strong><span style=\"color: #339966;\">describe \u201cfintech\u201d<\/span><\/strong><\/em><\/td>\n<\/tr>\n<tr>\n<td><em><strong><span style=\"color: #339966;\">&nbsp;<\/span><\/strong><\/em><\/td>\n<td><em><strong><span style=\"color: #339966;\">LOS 43b: describe Big Data, artificial intelligence, and machine learning<\/span><\/strong><\/em><\/td>\n<\/tr>\n<tr>\n<td><em><strong><span style=\"color: #339966;\">&nbsp;<\/span><\/strong><\/em><\/td>\n<td><em><strong><span style=\"color: #339966;\">&nbsp;LOS 43c: describe fintech applications to investment management<\/span><\/strong><\/em><\/td>\n<\/tr>\n<tr>\n<td><em><strong><span style=\"color: #339966;\">&nbsp;<\/span><\/strong><\/em><\/td>\n<td><em><strong><span style=\"color: #339966;\">&nbsp;LOS 43d: describe financial applications of distributed ledger technology<\/span><\/strong><\/em><\/td>\n<\/tr>\n<tr>\n<td>\n<h4><span class=\"ez-toc-section\" id=\"Reading_49_%E2%80%93_Equity_Valuation_%E2%80%93_Concepts_and_Basic_Tools\"><\/span>Reading 49 &#8211; Equity Valuation &#8211; Concepts and Basic Tools<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td>&nbsp;LOS 49a: evaluate whether a security, given its current market price and a value estimate, is overvalued, fairly valued, or undervalued by the market<\/td>\n<td>&nbsp;LOS 49a: evaluate whether a security, given its current market price and a value estimate, is overvalued, fairly valued, or undervalued by the market<\/td>\n<\/tr>\n<tr>\n<td>&nbsp;LOS 49b: describe major categories of equity valuation models<\/td>\n<td>&nbsp;LOS 49b: describe major categories of equity valuation models<\/td>\n<\/tr>\n<tr>\n<td>LOS 49c: explain the rationale for using present value models to value equity and describe the dividend discount and free-cash-flow-to-equity models<\/td>\n<td><span style=\"color: #339966;\"><em><strong>LOS 49c: describe regular cash dividends, extra dividends, stock dividends, stock splits, reverse stock splits, and share repurchases<\/strong><\/em><\/span><\/td>\n<\/tr>\n<tr>\n<td>LOS 49d: calculate the intrinsic value of a non-callable, non-convertible preferred stock<\/td>\n<td><span style=\"color: #339966;\"><em><strong>LOS 49d: describe dividend payment chronology<\/strong><\/em><\/span><\/td>\n<\/tr>\n<tr>\n<td>LOS 49e: calculate and interpret the intrinsic value of an equity security based on the Gordon (constant) growth dividend discount model or a two-stage dividend discount model, as appropriate<\/td>\n<td>LOS 49e: explain the rationale for using present value models to value equity and describe the dividend discount and free-cash-flow-to-equity models<\/td>\n<\/tr>\n<tr>\n<td>LOS 49f: identify characteristics of companies for which the constant growth or a multistage dividend discount model is appropriate<\/td>\n<td>LOS 49f: calculate the intrinsic value of a non-callable, non-convertible preferred stock<\/td>\n<\/tr>\n<tr>\n<td>&nbsp;LOS 49g: explain the rationale for using price multiples to value equity, how the price to earnings multiple relates to fundamentals, and the use of multiples based on comparables<\/td>\n<td>LOS 49g: calculate and interpret the intrinsic value of an equity security based on the Gordon (constant) growth dividend discount model or a two-stage dividend discount model, as appropriate<\/td>\n<\/tr>\n<tr>\n<td>&nbsp;LOS 49h: calculate and interpret the following multiples: price to earnings, price to an estimate of operating cash flow, price to sales, and price to book value<\/td>\n<td>LOS 49h: identify characteristics of companies for which the constant growth or a multistage dividend discount model is appropriate<\/td>\n<\/tr>\n<tr>\n<td>LOS 49i: describe enterprise value multiples and their use in estimating equity value<\/td>\n<td>&nbsp;LOS 49i: explain the rationale for using price multiples to value equity, how the price to earnings multiple relates to fundamentals, and the use of multiples based on comparables<\/td>\n<\/tr>\n<tr>\n<td>&nbsp;LOS 49j: describe asset-based valuation models and their use in estimating equity value<\/td>\n<td>&nbsp;LOS 49j: calculate and interpret the following multiples: price to earnings, price to an estimate of operating cash flow, price to sales, and price to book value<\/td>\n<\/tr>\n<tr>\n<td>&nbsp;LOS 49k: explain advantages and disadvantages of each category of valuation model<\/td>\n<td>LOS 49k: describe enterprise value multiples and their use in estimating equity value<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td>&nbsp;LOS 49l: describe asset-based valuation models and their use in estimating equity value<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td>&nbsp;LOS 49m: explain advantages and disadvantages of each category of valuation model<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td>\n<h3><span class=\"ez-toc-section\" id=\"Reading_51_%E2%80%93_Fixed_Income_Markets_Issuance_Trading_and_Funding\"><\/span>Reading 51 &#8211; Fixed Income Markets: Issuance, Trading, and Funding<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td>LOS 51a: describe classifications of global fixed-income markets<\/td>\n<td>LOS 51a: describe classifications of global fixed-income markets<\/td>\n<\/tr>\n<tr>\n<td>&nbsp;LOS 51b: describe the use of interbank offered rates as reference rates in floating-rate debt<\/td>\n<td>&nbsp;LOS 51b: describe the use of interbank offered rates as reference rates in floating-rate debt<\/td>\n<\/tr>\n<tr>\n<td>LOS 51c: describe mechanisms available for issuing bonds in primary markets<\/td>\n<td>LOS 51c: describe mechanisms available for issuing bonds in primary markets<\/td>\n<\/tr>\n<tr>\n<td>LOS 51d: describe secondary markets for bonds<\/td>\n<td>LOS 51d: describe secondary markets for bonds<\/td>\n<\/tr>\n<tr>\n<td>&nbsp;LOS 51e: describe securities issued by sovereign governments<\/td>\n<td>&nbsp;LOS 51e: describe securities issued by sovereign governments<\/td>\n<\/tr>\n<tr>\n<td>&nbsp;LOS 51f: describe securities issued by non-sovereign governments, quasi-government entities, and supranational agencies<\/td>\n<td>&nbsp;LOS 51f: describe securities issued by non-sovereign governments, quasi-government entities, and supranational agencies<\/td>\n<\/tr>\n<tr>\n<td>&nbsp;LOS 51g: describe types of debt issued by corporations<\/td>\n<td>&nbsp;LOS 51g: describe types of debt issued by corporations<\/td>\n<\/tr>\n<tr>\n<td>LOS 51h: describe short-term funding alternatives available to banks<\/td>\n<td><span style=\"color: #339966;\"><em><strong>LOS 51h: describe structured financial instruments<\/strong><\/em><\/span><\/td>\n<\/tr>\n<tr>\n<td>LOS 51i: describe repurchase agreements and the risks associated with them<\/td>\n<td>LOS 51i: describe short-term funding alternatives available to banks<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td>LOS 51j: describe repurchase agreements and the risks associated with them<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td>\n<h4><span class=\"ez-toc-section\" id=\"Reading_52_Introduction_to_Fixed_Income_Valuation\"><\/span>Reading 52: Introduction to Fixed Income Valuation<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td>LOS 52a: calculate a bond\u2019s price given a market discount rate<\/td>\n<td>LOS 52a: calculate a bond\u2019s price given a market discount rate<\/td>\n<\/tr>\n<tr>\n<td>&nbsp;LOS 52b: identify the relationships among a bond\u2019s price, coupon rate, maturity, and market discount rate (yield-to-maturity)<\/td>\n<td>&nbsp;LOS 52b: identify the relationships among a bond\u2019s price, coupon rate, maturity, and market discount rate (yield-to-maturity)<\/td>\n<\/tr>\n<tr>\n<td>&nbsp;LOS 52c: define spot rates and calculate the price of a bond using spot rates<\/td>\n<td>&nbsp;LOS 52c: define spot rates and calculate the price of a bond using spot rates<\/td>\n<\/tr>\n<tr>\n<td>LOS 52d: describe and calculate the flat price, accrued interest, and the full price of a bond<\/td>\n<td>LOS 52d: describe and calculate the flat price, accrued interest, and the full price of a bond<\/td>\n<\/tr>\n<tr>\n<td>LOS 52e: describe matrix pricing<\/td>\n<td>LOS 52e: describe matrix pricing<\/td>\n<\/tr>\n<tr>\n<td>LOS 52f: calculate and interpret yield measures for fixed-rate bonds, floating-rate notes, and money market instruments<\/td>\n<td>LOS 52f: calculate and interpret yield measures for fixed-rate bonds, floating-rate notes, and money market instruments<\/td>\n<\/tr>\n<tr>\n<td>&nbsp;LOS 52g: define and compare the spot curve, yield curve on coupon bonds, par curve, and forward curve<\/td>\n<td>&nbsp;LOS 52g: define and compare the spot curve, yield curve on coupon bonds, par curve, and forward curve<\/td>\n<\/tr>\n<tr>\n<td>&nbsp;LOS 52h: define forward rates and calculate spot rates from forward rates, forward rates from spot rates, and the price of a bond using forward rates<\/td>\n<td>&nbsp;LOS 52h: define forward rates and calculate spot rates from forward rates, forward rates from spot rates, and the price of a bond using forward rates<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><span style=\"color: #339966;\"><em><strong>LOS 52i: compare, calculate, and interpret yield spread measures.<\/strong><\/em><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>For 2019, the major change is the addition of one reading&nbsp;\u2013 Fintech&nbsp;\u2013 in the Portfolio Management study session. This reading summarizes new technologies in the investment world such as big data, machine&nbsp;learning, distributed&nbsp;ledgers, and even Bitcoin. All 3 Levels of&#8230;<\/p>\n","protected":false},"author":2,"featured_media":7923,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[70,73],"tags":[78],"class_list":["post-7902","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cfa","category-study-tips","tag-cfa","blog-post","animate"],"acf":[],"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/analystprep.com\/blog\/wp-json\/wp\/v2\/posts\/7902","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/analystprep.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/analystprep.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/analystprep.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/analystprep.com\/blog\/wp-json\/wp\/v2\/comments?post=7902"}],"version-history":[{"count":24,"href":"https:\/\/analystprep.com\/blog\/wp-json\/wp\/v2\/posts\/7902\/revisions"}],"predecessor-version":[{"id":10993,"href":"https:\/\/analystprep.com\/blog\/wp-json\/wp\/v2\/posts\/7902\/revisions\/10993"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/analystprep.com\/blog\/wp-json\/wp\/v2\/media\/7923"}],"wp:attachment":[{"href":"https:\/\/analystprep.com\/blog\/wp-json\/wp\/v2\/media?parent=7902"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/analystprep.com\/blog\/wp-json\/wp\/v2\/categories?post=7902"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/analystprep.com\/blog\/wp-json\/wp\/v2\/tags?post=7902"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}