Last Minute CFA Mastery

Trust is a key part of the investment industry. The CFA operates on a strict ethical code which exam takers must know. In this course, we’ll cover everything you need to know for the CFA section on Ethics.

We’ll cover areas such as the CFA code of ethics, Code violations and the need for ethical standards to be consistent between practitioners. We’ll also cover GIPS since understanding GIPS is a major facet of the CFA exam.

Learning Objectives:

1. Describe the need for high ethical standards in the investment industry.

2. State the six components of the Code of Ethics and the seven Standards of Professional Conduct.

3. Distinguish between conduct that conforms to the Code and Standards and conduct that violates the Code and Standards.

4. Explain why the GIPS standards were created, what parties the GIPS standards apply to, and who is served by the standards.

5. Describe the key features of the GIPS standards and the fundamentals of compliance.

This course covers quantitative analysis on the CFA exam. We’ll cover time value of money which is the bedrock of valuation in finance and a key part of the CFA exam. We’ll also go through project selection calculations and the basic statistics exam takers need to know in order to pass. Since, the investments field features significant amounts of uncertainty in investing, we’ll cover probability theory which helps with analyzing that risk as well as probability distributions which help investors to think through risk in investments. We’ll also go over understanding sampling and estimation, and how that can make you a better investor, as well as the uses of hypothesis testing The CFA exam includes questions on technical analysis, so we’ll cover that too. And finally, to pass the CFA exam, you need to have good test taking strategies, so we will go through some things to keep in mind when you are getting ready to sit for the exam.

Learning Objectives:

1. Solve time value of money problems for different frequencies of compounding

2. Calculate and interpret the net present value (NPV) and the internal rate of return (IRR) of an investment.

3. Explain measures of central tendency, including the population mean, sample mean, arithmetic mean, weighted average or mean, geometric mean, harmonic mean, median, and mode.

4. Explain unconditional and conditional probabilities and explain the use of conditional expectation in investment applications.'

5. Define a probability distribution and distinguish between discrete and continuous random variables and their probability functions.

6. Describe the issues regarding selection of the appropriate sample size, data-mining bias, sample selection bias, survivorship bias, look-ahead bias, and time-period bias.

7. Define a hypothesis, describe the steps of hypothesis testing, and describe and interpret the choice of the null and alternative hypotheses.

Economics is the parent of finance and investing, and as such it’s a major section of the CFA exam. In this course, we’ll cover a variety of areas you need to know as you prepare for the exam. Market structure questions are typically includes on the CFA exam, so we’ll go through the different types of structures. We’ll also cover the economic calculations that are a key part of the economics section of the CFA exam, as well as business cycles which have a major impact on the success or failure of investments. Another area we will cover is government policy as it relates to the economy and the business cycle. Moreover, since international trade is playing an increasingly important role in the stock market, we will go through that as well and we’ll talk about the related FX markets, which are a key investment area and a major part of the CFA exam. Finally, since to pass the CFA exam, you need to have good test taking strategies, we will give you some points to consider when the exam time comes.

Learning Objectives:

· Explain economic concepts of supply and demand and associated ideas including normal and inferior goods, and substitute and complimentary goods.

· Describe characteristics of perfect competition, monopolistic competition, oligopoly, and pure monopoly based on price, marginal revenue, marginal cost, economic profit, and the elasticity of demand under each market structure.

· Calculate and explain gross domestic product (GDP) using expenditure and income approaches.

· Describe the business cycle and its phases including its relationship to a set of economic indicators and their uses and limitations.

· Compare monetary and fiscal policy and the tools used in each area.

· Describe benefits and costs of international trade including the concept of comparative advantage and the balance of payments between countries.

· Define an exchange rate and distinguish between nominal and real exchange rates and spot and forward exchange rates as well as functions of and participants in the foreign exchange market.

· Understand test taking strategies for economics problems

This course focuses on Financial analysis which is a major section of the CFA exam. This starts with accounting systems and how they differ around the world as investment advisors need to understand these nuances. We’ll also cover financial statements like the income statement, the balance sheet, and the statement of cash flows. CFA exam takers should understand the tools of finance such as ratio analysis as well as accounting though, so we will cover how financials are presented, accounting treatment of capitalized costs and other accounting concepts as applied to finance. Finally, we’ll finish up by giving some tips when taking the financial analysis section of the CFA exam.

Learning Objectives:

· Describe the roles of the statement of financial position, statement of comprehensive income, statement of changes in equity, and statement of cash flows in evaluating a company’s performance and financial position.

· Compare the approach of financial reporting standards under IFRS and US generally accepted accounting principles (US GAAP) reporting systems.

· Describe the components of the income statement and alternative presentation formats of that statement.

· Describe the elements, uses and limitations of the balance sheet: assets, liabilities, and equity.

· Compare cash flows from operating, investing, and financing activities and classify cash flow items as relating to one of those three categories given a description of the items.

· Describe tools and techniques used in financial analysis, including their uses and limitations.

· Describe the financial statement presentation of and disclosures relating to inventories.

· Distinguish between costs that are capitalized and costs that are expensed in the period in which they are incurred.

· Explain how a company’s strategy is reflected in past financial performance

· Understand test taking strategies for Financial Statement analysis problems

This course covers what you need to know for the corporate finance section of the CFA. We will start by going over Corporate governance which is generally covered on the CFA exam. We will also go through calculations related to capital budgeting since they are a popular area of questions for the CFA exam. WACC and cost of capital are another area test takers can expect to see questions on since investors need to understand and be able to apply cost of capital calculations, and so we’ll cover all this as well. We will also go over risk management which has become a key aspect of investing, and working capital management since it is a major topic within corporate finance. Finally, we’ll finish up with some helpful tips and good test taking strategies for this area to help you pass the CFA exam.

Learning Objectives

· Describe principal–agent and other relationships in corporate governance and the conflicts that may arise in these relationships.

· Calculate and interpret net present value (NPV), internal rate of return (IRR), payback period, discounted payback period, and profitability index (PI) of a single capital project.

· . Calculate and interpret the weighted average cost of capital (WACC) of a company.

· Define, calculate, and explain leverage, business risk, sales risk, operating risk, and financial risk and classify a risk.

· Evaluate working capital effectiveness of a company based on its operating and cash conversion cycles and compare the company’s effectiveness with that of peer companies.

· Understand test taking strategies for Corporate Finance problems

This course covers the material from the equities section of the CFA exam including different types of markets and equity securities as well as securities analysis. At its core, investing is all about trying to find an asset that will be worth more in the future than it is today, and this course is focused on the aspects of the CFA exam that address this issue. In addition, we’ll cover equity indexes which are becoming an increasingly important benchmark for investors, and market efficiency which is a bedrock of fair pricing in investments. We will also go over classifying investment options since that is a big part of what investment advisors do. To pass the CFA exam, you need to have good test taking strategies.

Learning Objectives

· Describe the major types of securities, currencies, contracts, commodities, and real assets that trade in organized markets, including their distinguishing characteristics and major subtypes.

· Explain the efficient market hypothesis and contrast weak-form, semi-strong-form, and strong-form market efficiency.

· Explain what an equity market index is, and calculate and interpret the value, price return, and total return of an index.

· Describe characteristics of types of equity securities.

· Compare methods by which companies can be grouped, current industry classification systems, and classify a company, given a description of its activities and the classification system.

· Evaluate whether a security, given its current market price and a value estimate, is overvalued, fairly valued, or undervalued by the market.

· Understand high level strategies for dealing with equity market questions on the CFA.

Fixed income may not be as exciting as stocks are, but it's still an important aspect of the CFA exam, and this course focuses on everything you need to know for the Fixed Income section of the exam. We’ll cover bond markets and the characteristics of the securities that trade there. Since calculations are required on the CFA exam including in the fixed income area, we will also go over how to use the financial calculator to solve bond problems for the exam as well as discussing risk metrics in fixed income. In addition, structured products are a core institutional investment today so we will cover what you should know about them as well as the basics of credit analysis that may come up for the exam.

Learning Objectives

· Describe basic features of a fixed-income security.

· Describe mechanisms available for issuing bonds in primary markets, secondary market trading in securities, and types of debt traded in fixed income markets.

· Calculate a bond's price and identify the relationships among a bond’s price, coupon rate, maturity, and market discount rate (yield-to-maturity).

· Describe types and characteristics of asset-backed securities, including mortgage pass-through securities and collateralized mortgage obligations, and explain the cash flows and risks for each type.

· Define, calculate, and interpret Macaulay, modified, and effective durations and the uses and limitations of each metric.

· Explain credit risk, credit analysis and explain the four Cs (Capacity, Collateral, Covenants, and Character) of traditional credit analysis.

· Understand high level strategies for dealing with fixed income questions on the CFA.

Derivatives feature prominently on the CFA exam and that is the focus of this course. We will cover derivatives with a primary focus on options, but also including forwards and futures. Derivatives are harder to price than other investments, so in addition to talking about the characteristics of call options and put options, we will also go over how they are priced including the Black Scholes formula and the inputs to it.

Learning Objectives:

· Define a derivative and distinguish between exchange-traded and over-the-counter derivatives.

· Explain how the concepts of arbitrage, replication, and risk neutrality are used in pricing derivatives.

· Identify the factors that determine the value of an option and explain how each factor affects the value of an option.

· Explain how the value and price of a forward contract are determined at expiration, during the life of the contract, and at initiation.

· Understand high level strategies for dealing with derivatives questions on the CFA.

Alternative investments are too big an area for investors to ignore these days, and for that reason they feature prominently on the CFA exam. In this course, we will cover alternative investments at a high level across the landscape. We will talk about the different types of alternatives, the benefit to a portfolio if used properly, and since alternative investments can be expensive, we will cover the fee structure as well. Finally, we will wrap up with some tips and points to remember when taking the exam.

Learning Objectives

· Describe hedge funds and private equity investments, including, as applicable, strategies, sub-categories, potential benefits and risks, fee structures, and due diligence.

· Discuss real estate, commodities, infrastructure, and other alternative investments, including, as applicable, strategies, sub-categories, potential benefits and risks, fee structures, and due diligence.

· Explain potential benefits of alternative investments in the context of portfolio management.

· Describe, calculate, and interpret management and incentive fees and net-of-fees returns to hedge funds.

· Understand high level strategies for dealing with Alternative investment questions on the CFA.