Standard III – Duties to Clients
Standard III(A) – Loyalty, Prudence, and Care Standard III(B) – Fair Dealing Standard III(C) – Suitability Standard III(D) – Performance Presentation Standard III(E) – Preservation of Confidentiality
Standard II – Integrity
Standard II (A) – Material Nonpublic Information Standard II (B) – Market Manipulation
Standard I – Professionalism
Standard I(A) – Knowledge of the Law Standard I(B) – Independence and Objectivity Standard I(C) – Misrepresentation Standard I(D) – Misconduct
Asset Class Allocation
Three Super Classes An asset class is a group of assets that all share some common elements. Asset classes help organize investment portfolios into separate components. We can start with the broadest sense of the word and divide assets into…
Approaches to Asset Allocation
Portfolio managers rely on one of three frameworks for analyzing and managing their portfolios. The three approaches below have advantages and disadvantages, which the analysts and managers must know to make prudent investment decisions. Asset-only Approach This approach considers only…
Hypothesis Testing
After completing this reading, you should be able to: Construct an appropriate null hypothesis and alternative hypothesis and distinguish between the two. Construct and apply confidence intervals for one-sided and two-sided hypothesis tests, and interpret the results of hypothesis tests…
Swaps
After completing this reading, you should be able to: Explain the mechanics of a plain vanilla interest rate swap and compute its cash flows. Explain how a plain vanilla interest rate swap can be used to transform an asset…
Determine the distribution of order statistics from a set of independent random variables
Order Statistics Order Statistics are distributions obtained when we look at test scores from a random sample arranged in ascending order, i.e., from the smallest to the largest. In recent years, the importance of order statistics has increased because of…
Application of the Code and Standards
The curriculum’s next section covers Standards I-VII with guidance provided in Reading 30 and Reading 31. The CFAI Curriculum offers numerous case examples and advice on applying the Code and Standards. Candidates receive a downloadable e-book as part of their…
Guidance for Standards I–VII
The curriculum’s next section covers Standards I-VII with guidance provided in Reading 30 and Reading 31. The CFAI Curriculum offers numerous case examples and advice on applying the Code and Standards. Candidates receive a downloadable e-book as part of their…
