Professionalism in Investment Management
Investment management is an upcoming profession. This is evidenced by the following: The public understanding of its practice and codes are still growing. There is a lack of recognition by the regulators and the employers, which prevent the establishment profession…
Ethics and Profession
A profession can be defined as the occupational group that is based on the unique education, specialist knowledge, and framework of practice and behavior that establishes community trust, respect, and recognition. A large proportion of professions outlines the importance of…
Hypothesis Test on Correlation
Intuitively, if the correlation coefficient between two variables is zero, then there is no linear relationship between the variables. Otherwise, if we use the test of significance to determine whether there is a linear relationship, we will be inclined to…
Value at Expiration and Profit for Call and Put Options
In an options contract, two parties transact simultaneously. The buyer of a call or a put option is the long position in the contract, while the seller of the option, also known as the writer of the option, is the…
ESG Considerations in Portfolio Planning and Construction
Environmental, social, and governance factors are collectively referred to by the acronym “ESG”. ESG integration is the practice of considering environmental, social, and governance factors in the investment process. The integration can be implemented across all asset classes, including equities,…
The Asset Management Industry
Buy-Side vs. Sell-side Asset managers are typically deemed to be on the buy-side. This ideally means that they buy the products of sell-side firms. Buy-side firms include asset managers, hedge funds, institutional investors, and retail investors. On the other hand,…
CFA Level 1 Study Notes – Financial Statement and Analysis
Study Session 6 Reading 15 – Introduction to Financial Statement Analysis –LOS 15a: describe the roles of financial reporting and financial statement analysis –LOS 15b: describe the roles of the statement of financial position, statement of comprehensive income, statement of…
CFA Level 1 Study Notes – Equity Investments
Study Session 12 Reading 36 – Market Organization and Structure – LOS 36a: explain the main functions of the financial system – LOS 36b: describe classifications of assets and markets – LOS 36c: describe the major types of securities, currencies,…
Ethics and Trust in the Investment Profession
Ethics Defined Many professions define a code of ethics aimed at outlining cultural values within that profession. For the investment industry, ethics are defined as a standard of conduct valued by the financial sector. These can be expressed via concrete rules…
