###### Technical Analysis (TA)

Technical analysis is the use of price and volume data to value stocks.... **Read More**

– LOS 51a: describe the portfolio approach to investing

– LOS 51b: describe types of investors and distinctive characteristics and needs of each

– LOS 51c: describe defined contribution and defined benefit pension plans

– LOS 51d: describe the steps in the portfolio management process

– LOS 51e: describe aspects of the asset management industry

– LOS 51f: describe mutual funds and compare them with other pooled investment products

– LOS 52a: calculate and interpret major return measures and describe their appropriate uses

– LOS 52b: compare the money-weighted and time-weighted rates of return and evaluate the performance of portfolios based on these measures

– LOS 52c: describe characteristics of the major asset classes that investors consider in forming portfolios

– LOS 52d: calculate and interpret the mean, variance, and covariance (or correlation) of asset returns based on historical data

– LOS 52e: explain risk aversion and its implications for portfolio selection

– LOS 52f: calculate and interpret portfolio standard deviation

– LOS 52g: describe the effect on a portfolio’s risk of investing in assets that are less than perfectly correlated

– LOS 52h: describe and interpret the minimum-variance and efficient frontiers of risky assets and the global minimum-variance portfolio

– LOS 52i: explain the selection of an optimal portfolio, given an investor’s utility (or risk aversion) and the capital allocation line

– LOS 53a: describe the implications of combining a risk-free asset with a portfolio of risky assets

– LOS 53b: explain the capital allocation line (CAL) and the capital market line (CML)

– LOS 53c: explain systematic and nonsystematic risk, including why an investor should not expect to receive additional return for bearing nonsystematic risk

– LOS 53d: explain return generating models (including the market model) and their uses

– LOS 53e: calculate and interpret beta

– LOS 53f: explain the capital asset pricing model (CAPM), including its assumptions, and the security market line (SML)

– LOS 53g: calculate and interpret the expected return of an asset using the CAPM

– LOS 53h: describe and demonstrate applications of the CAPM and the SML

– LOS 53i: calculate and interpret the Sharpe ratio, Treynor ratio, M^{2}, and Jensen’s alpha

– LOS 54a: describe the reasons for a written investment policy statement (IPS)

– LOS 54b: describe the major components of an IPS

– LOS 54c: describe risk and return objectives and how they may be developed for a client

– LOS 54d: distinguish between the willingness and the ability (capacity) to take risk in analyzing an investor’s financial risk tolerance

– LOS 54e: describe the investment constraints of liquidity, time horizon, tax concerns, legal and regulatory factors, and unique circumstances and their implications for the choice of portfolio assets

– LOS 54f: explain the specification of asset classes in relation to asset allocation

– LOS 54g: describe the principles of portfolio construction and the role of asset allocation in relation to the IPS

– LOS 54h: describe how environmental, social, and governance (ESG) considerations may be integrated into portfolio planning and construction.

– LOS 55a: define risk management

– LOS 55b: describe features of a risk management framework

– LOS 55c: define risk governance and describe elements of effective risk governance

– LOS 55d: explain how risk tolerance affects risk management

– LOS 55e: describe risk budgeting and its role in risk governance

– LOS 55f: identify financial and non-financial sources of risk and describe how they may interact

– LOS 55g: describe methods for measuring and modifying risk exposures and factors to consider in choosing among the methods

– LOS 56a: explain principles of technical analysis, its applications, and its underlying assumptions

– LOS 56b: describe the construction of different types of technical analysis charts and interpret them

– LOS 56c: explain uses of trend, support, resistance lines, and change in polarity

– LOS 56d: describe common chart patterns

– LOS 56e: describe common technical analysis indicators (price-based, momentum oscillators, sentiment, and flow of funds)

– LOS 56f: explain how technical analysts use cycles

– LOS 56g: describe the key tenets of Elliott Wave Theory and the importance of Fibonacci numbers

– LOS 56h: describe intermarket analysis as it relates to technical analysis and asset allocation

– LOS 56a: describe “Fintech”

– LOS 56b: describe Big Data, Artificial Intelligence and Machine Learning

– LOS 56c: describe Fintech Applications to Investment Management

– LOS 56d: describe Financial Applications to Distributed Ledger Technology

– LOS 51a: describe the portfolio approach to investing

– LOS 51b: describe types of investors and distinctive characteristics and needs of each

– LOS 51c: describe defined contribution and defined benefit pension plans

– LOS 51d: describe the steps in the portfolio management process

– LOS 51e: describe aspects of the asset management industry

– LOS 51f: describe mutual funds and compare them with other pooled investment products

– LOS 52a: calculate and interpret major return measures and describe their appropriate uses

– LOS 52b: compare the money-weighted and time-weighted rates of return and evaluate the performance of portfolios based on these measures

– LOS 52c: describe characteristics of the major asset classes that investors consider in forming portfolios

– LOS 52d: calculate and interpret the mean, variance, and covariance (or correlation) of asset returns based on historical data

– LOS 52e: explain risk aversion and its implications for portfolio selection

– LOS 52f: calculate and interpret portfolio standard deviation

– LOS 52g: describe the effect on a portfolio’s risk of investing in assets that are less than perfectly correlated

– LOS 52h: describe and interpret the minimum-variance and efficient frontiers of risky assets and the global minimum-variance portfolio

– LOS 52i: explain the selection of an optimal portfolio, given an investor’s utility (or risk aversion) and the capital allocation line

– LOS 53a: describe the implications of combining a risk-free asset with a portfolio of risky assets

– LOS 53b: explain the capital allocation line (CAL) and the capital market line (CML)

– LOS 53c: explain systematic and nonsystematic risk, including why an investor should not expect to receive additional return for bearing nonsystematic risk

– LOS 53d: explain return generating models (including the market model) and their uses

– LOS 53e: calculate and interpret beta

– LOS 53f: explain the capital asset pricing model (CAPM), including its assumptions, and the security market line (SML)

– LOS 53g: calculate and interpret the expected return of an asset using the CAPM

– LOS 53h: describe and demonstrate applications of the CAPM and the SML

– LOS 53i: calculate and interpret the Sharpe ratio, Treynor ratio, M^{2}, and Jensen’s alpha

– LOS 54a: describe the reasons for a written investment policy statement (IPS)

– LOS 54b: describe the major components of an IPS

– LOS 54c: describe risk and return objectives and how they may be developed for a client

– LOS 54d: distinguish between the willingness and the ability (capacity) to take risk in analyzing an investor’s financial risk tolerance

– LOS 54e: describe the investment constraints of liquidity, time horizon, tax concerns, legal and regulatory factors, and unique circumstances and their implications for the choice of portfolio assets

– LOS 54f: explain the specification of asset classes in relation to asset allocation

– LOS 54g: describe the principles of portfolio construction and the role of asset allocation in relation to the IPS

– LOS 54h: describe how environmental, social, and governance (ESG) considerations may be integrated into portfolio planning and construction.

– LOS 52a: compare and contrast cognitive errors and emotional biases

– LOS 52b: discuss commonly recognized behavioral biases and their implications for financial decision making

– LOS 52c: describe how behavioral biases of investors can lead to market characteristics that may not be explained by traditional finance

– LOS 55a: define risk management

– LOS 55b: describe features of a risk management framework

– LOS 55c: define risk governance and describe elements of effective risk governance

– LOS 55d: explain how risk tolerance affects risk management

– LOS 55e: describe risk budgeting and its role in risk governance

– LOS 55f: identify financial and non-financial sources of risk and describe how they may interact

– LOS 55g: describe methods for measuring and modifying risk exposures and factors to consider in choosing among the methods

– LOS 54a: explain principles and assumptions of technical analysis;

– LOS 54b: describe potential links between technical analysis and behavioral inance;

– LOS 54c: compare principles of technical analysis and fundamental analysis;

– LOS 54d: describe and interpret different types of technical analysis charts;

– LOS 54e: explain uses of trend, support, and resistance lines;

– LOS 54f: explain common chart patterns;

– LOS 54g: explain common technical indicators;

– LOS 54h: describe principles of intermarket analysis;

– LOS 54i. explain technical analysis applications to portfolio management.