CFA Program Curriculum
Comprehensive study materials for CFA candidates
Expand All
Collapse All
Quantitative Methods
Learning Module 1: Rates and Returns
Introduction
3
Interest Rates and Time Value of Money
Determinants of Interest Rates
Rates of Return
Holding Period Return
Arithmetic or Mean Return
Geometric Mean Return
The Harmonic Mean
Money-Weighted and Time-Weighted Return
Calculating the Money Weighted Return
Annualized Return
Non-annual Compounding
Annualizing Returns
Continuously Compounded Returns
Other Major Return Measures and Their Applications
Gross and Net Return
Pre-Tax and After-Tax Nominal Return
Real Returns
Leveraged Return
Practice Problems
Solutions
Learning Module 2: The Time Value of Money in Finance
Introduction
45
Time Value of Money in Fixed Income and Equity
46
Fixed-Income Instruments and the Time Value of Money
47
Equity Instruments and the Time Value of Money
55
Implied Return and Growth
60
Implied Return for Fixed-Income Instruments
60
Equity Instruments, Implied Return, and Implied Growth
65
Cash Flow Additivity
69
Implied Forward Rates Using Cash Flow Additivity
71
Forward Exchange Rates Using No Arbitrage
74
Option Pricing Using Cash Flow Additivity
76
Practice Problems
81
Solutions
84
Learning Module 3: Statistical Measures of Asset Returns
Introduction
45
Time Value of Money in Fixed Income and Equity
46
Fixed-Income Instruments and the Time Value of Money
47
Equity Instruments and the Time Value of Money
55
Implied Return and Growth
60
Implied Return for Fixed-Income Instruments
60
Equity Instruments, Implied Return, and Implied Growth
65
Cash Flow Additivity
69
Implied Forward Rates Using Cash Flow Additivity
71
Forward Exchange Rates Using No Arbitrage
74
Option Pricing Using Cash Flow Additivity
76
Practice Problems
81
Solutions
84
Economics
Learning Module 1: Firms and Market Structures
Introduction
351
Profit Maximization: Production Breakeven, Shutdown and Economies of Scale
354
Profit-Maximization, Breakeven, and Shutdown Points of Production
355
Breakeven Analysis and Shutdown Decision
357
The Shutdown Decision
358
Economies and Diseconomies of Scale with Short-Run and Long-Run Cost Analysis
362
Introduction to Market Structures
368
Analysis of Market Structures
368
Monopolistic Competition
373
Demand Analysis in Monopolistically Competitive Markets
374
Supply Analysis in Monopolistically Competitive Markets
375
Optimal Price and Output in Monopolistically Competitive Markets
375
Long-Run Equilibrium in Monopolistic Competition
376
Oligopoly
377
Oligopoly and Pricing Strategies
377
Demand Analysis and Pricing Strategies in Oligopoly Markets
378
The Cournot Assumption
380
The Nash Equilibrium
382
Oligopoly Markets: Optimal Price, Output, and Long-Run Equilibrium
384
Determining Market Structure
388
Econometric Approaches
389
Simpler Measures
390
Practice Problems
393
Solutions
396
Learning Module 2: Understanding Business Cycles
Introduction
397
Overview of the Business Cycle
399
Phases of the Business Cycle
400
Leads and Lags in Business and Consumer Decision Making
403
Market Conditions and Investor Behavior
403
Credit Cycles
405
Applications of Credit Cycles
406
Consequences for Policy
407
Economic Indicators over the Business Cycle
408
The Workforce and Company Costs
408
Fluctuations in Capital Spending
409
Fluctuations in Inventory Levels
411
Economic Indicators
413
Types of Indicators
413
Composite Indicators
414
Leading Indicators
414
Using Economic Indicators
415
Other Composite Leading Indicators
416
Surveys
418
The Use of Big Data in Economic Indicators
418
Nowcasting
418
GDPNow
419
Practice Problems
422
Solutions
425