CFA Level 1 - LOS Changes 2014 - 2015

www.passingscore.net 1 CFA Level 1 - LOS Changes 2014 - 2015 Topic LOS Level I - 2014 (532 LOS) LOS Level I - 2015 (529 LOS) Compared Ethics 1.1.a describe the structure of the CFA Institute Professional Conduct Program and the process for the enforcement of the Code and Standards 1.1.a describe the structure of the CFA Institute Professional Conduct Program and the process for the enforcement of the Code and Standards Ethics 1.1.b state the six components of the Code of Ethics and the seven Standards of Professional Conduct 1.1.b state the six components of the Code of Ethics and the seven Standards of Professional Conduct Ethics 1.1.c explain the ethical responsibilities required by the Code and Standards, including the sub-sections of each Standard 1.1.c explain the ethical responsibilities required by the Code and Standards, including the sub-sections of each Standard Ethics 1.2.a demonstrate the application of the Code of Ethics and Standards of Professional Conduct to situations involving issues of professional integrity 1.2.a demonstrate the application of the Code of Ethics and Standards of Professional Conduct to situations involving issues of professional integrity Ethics 1.2.b distinguish between conduct that conforms to the Code and Standards and conduct that violates the Code and Standards 1.2.b distinguish between conduct that conforms to the Code and Standards and conduct that violates the Code and Standards Ethics 1.2.c recommend practices and procedures designed to prevent violations of the Code of Ethics and Standards of Professional Conduct 1.2.c recommend practices and procedures designed to prevent violations of the Code of Ethics and Standards of Professional Conduct Ethics 1.3.a explain why the GIPS standards were created, what parties the GIPS standards apply to, and who is served by the standards 1.3.a explain why the GIPS standards were created, what parties the GIPS standards apply to, and who is served by the standards Ethics 1.3.b explain the construction and purpose of composites in performance reporting 1.3.b explain the construction and purpose of composites in performance reporting Ethics 1.3.c explain the requirements for verification 1.3.c explain the requirements for verification Ethics 1.4.a describe the key features of the GIPS standards and the fundamentals of compliance 1.4.a describe the key features of the GIPS standards and the fundamentals of compliance www.passingscore.net 2 Ethics 1.4.b describe the scope of the GIPS standards with respect to an investment firm’s definition and historical performance record 1.4.b describe the scope of the GIPS standards with respect to an investment firm’s definition and historical performance record Ethics 1.4.c explain how the GIPS standards are implemented in countries with existing standards for performance reporting and describe the appropriate response when the GIPS standards and local regulations conflict 1.4.c explain how the GIPS standards are implemented in countries with existing standards for performance reporting and describe the appropriate response when the GIPS standards and local regulations conflict Ethics 1.4.d describe the nine major sections of the GIPS standards 1.4.d describe the nine major sections of the GIPS standards Quantitative 2.5.a interpret interest rates as required rates of return, discount rates, or opportunity costs 2.5.a interpret interest rates as required rates of return, discount rates, or opportunity costs Quantitative 2.5.b explain an interest rate as the sum of a real risk-free rate, and premiums that compensate investors for bearing distinct types of risk 2.5.b explain an interest rate as the sum of a real risk-free rate, and premiums that compensate investors for bearing distinct types of risk Quantitative 2.5.c calculate and interpret the effective annual rate, given the stated annual interest rate and the frequency of compounding 2.5.c calculate and interpret the effective annual rate, given the stated annual interest rate and the frequency of compounding Quantitative 2.5.d solve time value of money problems for different frequencies of compounding 2.5.d solve time value of money problems for different frequencies of compounding Quantitative 2.5.e calculate and interpret the future value (FV) and present value (PV) of a single sum of money, an ordinary annuity, an annuity due, a perpetuity (PV only), and a series of unequal cash flows 2.5.e calculate and interpret the future value (FV) and present value (PV) of a single sum of money, an ordinary annuity, an annuity due, a perpetuity (PV only), and a series of unequal cash flows Quantitative 2.5.f demonstrate the use of a time line in modeling and solving time value of money problems 2.5.f demonstrate the use of a time line in modeling and solving time value of money problems Quantitative 2.6.a calculate and interpret the net present value (NPV) and the internal rate of return (IRR) of an investment 2.6.a calculate and interpret the net present value (NPV) and the internal rate of return (IRR) of an investment Quantitative 2.6.b contrast the NPV rule to the IRR rule, and identify problems associated with the IRR rule 2.6.b contrast the NPV rule to the IRR rule, and identify problems associated with the IRR rule Quantitative 2.6.c calculate and interpret a holding period return (total return) 2.6.c calculate and interpret a holding period return (total return) www.passingscore.net 3 Quantitative 2.6.d calculate and compare the money- weighted and time-weighted rates of return of a portfolio and evaluate the performance of portfolios based on these measures 2.6.d calculate and compare the money- weighted and time-weighted rates of return of a portfolio and evaluate the performance of portfolios based on these measures Quantitative 2.6.e calculate and interpret the bank discount yield, holding period yield, effective annual yield, and money market yield for U.S. Treasury bills and other money market instruments 2.6.e calculate and interpret the bank discount yield, holding period yield, effective annual yield, and money market yield for U.S. Treasury bills and other money market instruments Quantitative 2.6.f convert among holding period yields, money market yields, effective annual yields, and bond equivalent yields 2.6.f convert among holding period yields, money market yields, effective annual yields, and bond equivalent yields Quantitative 2.7.a distinguish between descriptive statistics and inferential statistics, between a population and a sample, and among the types of measurement scales 2.7.a distinguish between descriptive statistics and inferential statistics, between a population and a sample, and among the types of measurement scales Quantitative 2.7.b define a parameter, a sample statistic, and a frequency distribution 2.7.b define a parameter, a sample statistic, and a frequency distribution Quantitative 2.7.c calculate and interpret relative frequencies and cumulative relative frequencies, given a frequency distribution 2.7.c calculate and interpret relative frequencies and cumulative relative frequencies, given a frequency distribution Quantitative 2.7.d describe the properties of a data set presented as a histogram or a frequency polygon 2.7.d describe the properties of a data set presented as a histogram or a frequency polygon Quantitative 2.7.e calculate and interpret measures of central tendency, including the population mean, sample mean, arithmetic mean, weighted average or mean, geometric mean, harmonic mean, median, and mode 2.7.e calculate and interpret measures of central tendency, including the population mean, sample mean, arithmetic mean, weighted average or mean, geometric mean, harmonic mean, median, and mode Quantitative 2.7.f calculate and interpret quartiles, quintiles, deciles, and percentiles 2.7.f calculate and interpret quartiles, quintiles, deciles, and percentiles Quantitative 2.7.g calculate and interpret 1) a range and a mean absolute deviation and 2) the variance and standard deviation of a population and of a sample 2.7.g calculate and interpret 1) a range and a mean absolute deviation and 2) the variance and standard deviation of a population and of a sample www.passingscore.net 4 Quantitative 2.7.h calculate and interpret the proportion of observations falling within a specified number of standard deviations of the mean using Chebyshev’s inequality 2.7.h calculate and interpret the proportion of observations falling within a specified number of standard deviations of the mean using Chebyshev’s inequality Quantitative 2.7.i calculate and interpret the coefficient of variation and the Sharpe ratio 2.7.i calculate and interpret the coefficient of variation and the Sharpe ratio Quantitative 2.7.j explain skewness and the meaning of a positively or negatively skewed return distribution 2.7.j explain skewness and the meaning of a positively or negatively skewed return distribution Quantitative 2.7.k describe the relative locations of the mean, median, and mode for a unimodal, nonsymmetrical distribution 2.7.k describe the relative locations of the mean, median, and mode for a unimodal, nonsymmetrical distribution Quantitative 2.7.l explain measures of sample skewness and kurtosis 2.7.l explain measures of sample skewness and kurtosis Quantitative 2.7.m compare the use of arithmetic and geometric means when analyzing investment returns 2.7.m compare the use of arithmetic and geometric means when analyzing investment returns Quantitative 2.8.a define a random variable, an outcome, an event, mutually exclusive events, and exhaustive events 2.8.a define a random variable, an outcome, an event, mutually exclusive events, and exhaustive events Quantitative 2.8.b state the two defining properties of probability and distinguish among empirical, subjective, and a priori probabilities 2.8.b state the two defining properties of probability and distinguish among empirical, subjective, and a priori probabilities Quantitative 2.8.c state the probability of an event in terms of odds for and against the event 2.8.c state the probability of an event in terms of odds for and against the event Quantitative 2.8.d distinguish between unconditional and conditional probabilities 2.8.d distinguish between unconditional and conditional probabilities Quantitative 2.8.e explain the multiplication, addition, and total probability rules 2.8.e explain the multiplication, addition, and total probability rules Quantitative 2.8.f calculate and interpret 1) the joint probability of two events, 2) the probability that at least one of two events will occur, given the probability of each and the joint probability of the two events, and 3) a joint probability of any number of independent events 2.8.f calculate and interpret 1) the joint probability of two events, 2) the probability that at least one of two events will occur, given the probability of each and the joint probability of the two events, and 3) a joint probability of any number of independent events Quantitative 2.8.g distinguish between dependent and independent events 2.8.g distinguish between dependent and independent events www.passingscore.net 5 Quantitative 2.8.h calculate and interpret an unconditional probability using the total probability rule 2.8.h calculate and interpret an unconditional probability using the total probability rule Quantitative 2.8.i explain the use of conditional expectation in investment applications 2.8.i explain the use of conditional expectation in investment applications Quantitative 2.8.j explain the use of a tree diagram to represent an investment problem 2.8.j explain the use of a tree diagram to represent an investment problem Quantitative 2.8.k calculate and interpret covariance and correlation 2.8.k calculate and interpret covariance and correlation Quantitative 2.8.l calculate and interpret the expected value, variance, and standard deviation of a random variable and of returns on a portfolio 2.8.l calculate and interpret the expected value, variance, and standard deviation of a random variable and of returns on a portfolio Quantitative 2.8.m calculate and interpret covariance given a joint probability function 2.8.m calculate and interpret covariance given a joint probability function Quantitative 2.8.n calculate and interpret an updated probability using Bayes’ formula 2.8.n calculate and interpret an updated probability using Bayes’ formula Quantitative 2.8.o identify the most appropriate method to solve a particular counting problem, and solve counting problems using factorial, combination, and permutation concepts 2.8.o identify the most appropriate method to solve a particular counting problem, and solve counting problems using factorial, combination, and permutation concepts Quantitative 3.9.a define a probability distribution and distinguish between discrete and continuous random variables and their probability functions 3.9.a define a probability distribution and distinguish between discrete and continuous random variables and their probability functions Quantitative 3.9.b describe the set of possible outcomes of a specified discrete random variable 3.9.b describe the set of possible outcomes of a specified discrete random variable Quantitative 3.9.c interpret a cumulative distribution function 3.9.c interpret a cumulative distribution function Quantitative 3.9.d calculate and interpret probabilities for a random variable, given its cumulative distribution function 3.9.d calculate and interpret probabilities for a random variable, given its cumulative distribution function Quantitative 3.9.e define a discrete uniform random variable, a Bernoulli random variable, and a binomial random variable 3.9.e define a discrete uniform random variable, a Bernoulli random variable, and a binomial random variable Quantitative 3.9.f calculate and interpret probabilities given the discrete uniform and the binomial distribution functions 3.9.f calculate and interpret probabilities given the discrete uniform and the binomial distribution functions Quantitative 3.9.g construct a binomial tree to describe stock price movement 3.9.g construct a binomial tree to describe stock price movement www.passingscore.net 6 Quantitative 3.9.h calculate and interpret tracking error 3.9.h calculate and interpret tracking error Quantitative 3.9.i define the continuous uniform distribution and calculate and interpret probabilities, given a continuous uniform distribution 3.9.i define the continuous uniform distribution and calculate and interpret probabilities, given a continuous uniform distribution Quantitative 3.9.j explain the key properties of the normal distribution 3.9.j explain the key properties of the normal distribution Quantitative 3.9.k distinguish between a univariate and a multivariate distribution, and explain the role of correlation in the multivariate normal distribution 3.9.k distinguish between a univariate and a multivariate distribution, and explain the role of correlation in the multivariate normal distribution Quantitative 3.9.l determine the probability that a normally distributed random variable lies inside a given interval 3.9.l determine the probability that a normally distributed random variable lies inside a given interval Quantitative 3.9.m define the standard normal distribution, explain how to standardize a random variable, and calculate and interpret probabilities using the standard normal distribution 3.9.m define the standard normal distribution, explain how to standardize a random variable, and calculate and interpret probabilities using the standard normal distribution Quantitative 3.9.n define shortfall risk, calculate the safety- first ratio, and select an optimal portfolio using Roy’s safety-first criterion 3.9.n define shortfall risk, calculate the safety- first ratio, and select an optimal portfolio using Roy’s safety-first criterion Quantitative 3.9.o explain the relationship between normal and lognormal distributions and why the lognormal distribution is used to model asset prices 3.9.o explain the relationship between normal and lognormal distributions and why the lognormal distribution is used to model asset prices Quantitative 3.9.p distinguish between discretely and continuously compounded rates of return, and calculate and interpret a continuously compounded rate of return, given a specific holding period return 3.9.p distinguish between discretely and continuously compounded rates of return, and calculate and interpret a continuously compounded rate of return, given a specific holding period return Quantitative 3.9.q explain Monte Carlo simulation and describe its major applications and limitations 3.9.q explain Monte Carlo simulation and describe its applications and limitations Wording Change Quantitative 3.9.r compare Monte Carlo simulation and historical simulation 3.9.r compare Monte Carlo simulation and historical simulation Quantitative 3.10.a define simple random sampling and a sampling distribution 3.10.a define simple random sampling and a sampling distribution Quantitative 3.10.b explain sampling error 3.10.b explain sampling error www.passingscore.net 7 Quantitative 3.10.c distinguish between simple random and stratified random sampling 3.10.c distinguish between simple random and stratified random sampling Quantitative 3.10.d distinguish between time-series and cross-sectional data 3.10.d distinguish between time-series and cross-sectional data Quantitative 3.10.e explain the central limit theorem and its importance 3.10.e explain the central limit theorem and its importance Quantitative 3.10.f calculate and interpret the standard error of the sample mean 3.10.f calculate and interpret the standard error of the sample mean Quantitative 3.10.g identify and describe desirable properties of an estimator 3.10.g identify and describe desirable properties of an estimator Quantitative 3.10.h distinguish between a point estimate and a confidence interval estimate of a population parameter 3.10.h distinguish between a point estimate and a confidence interval estimate of a population parameter Quantitative 3.10.i describe properties of Student’s t- distribution and calculate and interpret its degrees of freedom 3.10.i describe properties of Student’s t- distribution and calculate and interpret its degrees of freedom Quantitative 3.10.j calculate and interpret a confidence interval for a population mean, given a normal distribution with 1) a known population variance, 2) an unknown population variance, or 3) an unknown variance and a large sample size 3.10.j calculate and interpret a confidence interval for a population mean, given a normal distribution with 1) a known population variance, 2) an unknown population variance, or 3) an unknown variance and a large sample size Quantitative 3.10.k 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 3.10.k 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 Quantitative 3.11.a define a hypothesis, describe the steps of hypothesis testing, and describe and interpret the choice of the null and alternative hypotheses 3.11.a define a hypothesis, describe the steps of hypothesis testing, and describe and interpret the choice of the null and alternative hypotheses Quantitative 3.11.b distinguish between one-tailed and two- tailed tests of hypotheses 3.11.b distinguish between one-tailed and two- tailed tests of hypotheses Quantitative 3.11.c explain a test statistic, Type I and Type II errors, a significance level, and how significance levels are used in hypothesis testing 3.11.c explain a test statistic, Type I and Type II errors, a significance level, and how significance levels are used in hypothesis testing Quantitative 3.11.d explain a decision rule, the power of a test, and the relation between confidence intervals and hypothesis tests 3.11.d explain a decision rule, the power of a test, and the relation between confidence intervals and hypothesis tests www.passingscore.net 8 Quantitative 3.11.e distinguish between a statistical result and an economically meaningful result 3.11.e distinguish between a statistical result and an economically meaningful result Quantitative 3.11.f explain and interpret the p-value as it relates to hypothesis testing 3.11.f explain and interpret the p-value as it relates to hypothesis testing Quantitative 3.11.g identify the appropriate test statistic and interpret the results for a hypothesis test concerning the population mean of both large and small samples when the population is normally or approximately distributed and the variance is 1) known or 2) unknown 3.11.g identify the appropriate test statistic and interpret the results for a hypothesis test concerning the population mean of both large and small samples when the population is normally or approximately distributed and the variance is 1) known or 2) unknown Quantitative 3.11.h identify the appropriate test statistic and interpret the results for a hypothesis test concerning the equality of the population means of two at least approximately normally distributed populations, based on independent random samples with 1) equal or 2) unequal assumed variances 3.11.h identify the appropriate test statistic and interpret the results for a hypothesis test concerning the equality of the population means of two at least approximately normally distributed populations, based on independent random samples with 1) equal or 2) unequal assumed variances Quantitative 3.11.i identify the appropriate test statistic and interpret the results for a hypothesis test concerning the mean difference of two normally distributed populations 3.11.i identify the appropriate test statistic and interpret the results for a hypothesis test concerning the mean difference of two normally distributed populations Quantitative 3.11.j identify the appropriate test statistic and interpret the results for a hypothesis test concerning 1) the variance of a normally distributed population, and 2) the equality of the variances of two normally distributed populations based on two independent random samples 3.11.j identify the appropriate test statistic and interpret the results for a hypothesis test concerning 1) the variance of a normally distributed population, and 2) the equality of the variances of two normally distributed populations based on two independent random samples Quantitative 3.11.k distinguish between parametric and nonparametric tests and describe situations in which the use of nonparametric tests may be appropriate 3.11.k distinguish between parametric and nonparametric tests and describe situations in which the use of nonparametric tests may be appropriate Quantitative 3.12.a explain principles of technical analysis, its applications, and its underlying assumptions 3.12.a explain principles of technical analysis, its applications, and its underlying assumptions www.passingscore.net 9 Quantitative 3.12.b describe the construction of different types of technical analysis charts and interpret them 3.12.b describe the construction of different types of technical analysis charts and interpret them Quantitative 3.12.c explain uses of trend, support, resistance lines, and change in polarity 3.12.c explain uses of trend, support, resistance lines, and change in polarity Quantitative 3.12.d describe common chart patterns 3.12.d describe common chart patterns Quantitative 3.12.e describe common technical analysis indicators (price-based, momentum oscillators, sentiment, and flow of funds) 3.12.e describe common technical analysis indicators (price-based, momentum oscillators, sentiment, and flow of funds) Quantitative 3.12.f explain how technical analysts use cycles 3.12.f explain how technical analysts use cycles Quantitative 3.12.g describe the key tenets of Elliott Wave Theory and the importance of Fibonacci numbers 3.12.g describe the key tenets of Elliott Wave Theory and the importance of Fibonacci numbers Quantitative 3.12.h describe intermarket analysis as it relates to technical analysis and asset allocation 3.12.h describe intermarket analysis as it relates to technical analysis and asset allocation Economics 4.13.a distinguish among types of markets 4.13.a distinguish among types of markets Economics 4.13.b explain the principles of demand and supply 4.13.b explain the principles of demand and supply Economics 4.13.c describe causes of shifts in and movements along demand and supply curves 4.13.c describe causes of shifts in and movements along demand and supply curves Economics 4.13.d describe the process of aggregating demand and supply curves 4.13.d describe the process of aggregating demand and supply curves Economics 4.13.e describe the concept of equilibrium (partial and general), and mechanisms by which markets achieve equilibrium 4.13.e describe the concept of equilibrium (partial and general), and mechanisms by which markets achieve equilibrium Economics 4.13.f distinguish between stable and unstable equilibria, including price bubbles, and identify instances of such equilibria 4.13.f distinguish between stable and unstable equilibria, including price bubbles, and identify instances of such equilibria Economics 4.13.g calculate and interpret individual and aggregate demand, and inverse demand and supply functions, and interpret individual and aggregate demand and supply curves 4.13.g calculate and interpret individual and aggregate demand, and inverse demand and supply functions, and interpret individual and aggregate demand and supply curves Economics 4.13.h calculate and interpret the amount of excess demand or excess supply associated with a non-equilibrium price 4.13.h calculate and interpret the amount of excess demand or excess supply associated with a non-equilibrium price www.passingscore.net 10 Economics 4.13.i describe types of auctions and calculate the winning price(s) of an auction 4.13.i describe types of auctions and calculate the winning price(s) of an auction Economics 4.13.j calculate and interpret consumer surplus, producer surplus, and total surplus 4.13.j calculate and interpret consumer surplus, producer surplus, and total surplus Economics 4.13.k describe how government regulation and intervention affect demand and supply 4.13.k describe how government regulation and intervention affect demand and supply Economics 4.13.l forecast the effect of the introduction and the removal of a market interference (e.g., a price floor or ceiling) on price and quantity 4.13.l forecast the effect of the introduction and the removal of a market interference (e.g., a price floor or ceiling) on price and quantity Economics 4.13.m calculate and interpret price, income, and cross-price elasticities of demand and describe factors that affect each measure 4.13.m calculate and interpret price, income, and cross-price elasticities of demand and describe factors that affect each measure Economics 4.14.a describe consumer choice theory and utility theory 4.14.a describe consumer choice theory and utility theory Economics 4.14.b describe the use of indifference curves, opportunity sets, and budget constraints in decision making 4.14.b describe the use of indifference curves, opportunity sets, and budget constraints in decision making Economics 4.14.c calculate and interpret a budget constraint 4.14.c calculate and interpret a budget constraint Economics 4.14.d determine a consumer’s equilibrium bundle of goods based on utility analysis 4.14.d determine a consumer’s equilibrium bundle of goods based on utility analysis Economics 4.14.e compare substitution and income effects 4.14.e compare substitution and income effects Economics 4.14.f distinguish between normal goods and inferior goods, and explain Giffen goods and Veblen goods in this context 4.14.f distinguish between normal goods and inferior goods, and explain Giffen goods and Veblen goods in this context Economics 4.15.a calculate, interpret, and compare accounting profit, economic profit, normal profit, and economic rent 4.15.a calculate, interpret, and compare accounting profit, economic profit, normal profit, and economic rent Economics 4.15.b calculate and interpret and compare total, average, and marginal revenue 4.15.b calculate and interpret and compare total, average, and marginal revenue Economics 4.15.c describe a firm’s factors of production 4.15.c describe a firm’s factors of production Economics 4.15.d calculate and interpret total, average, marginal, fixed, and variable costs 4.15.d calculate and interpret total, average, marginal, fixed, and variable costs Economics 4.15.e determine and describe breakeven and shutdown points of production 4.15.e determine and describe breakeven and shutdown points of production [...]... schedule, explain why it may be upwardsloping with respect to additional capital, and calculate and interpret its break-points explain and demonstrate the correct treatment of flotation costs 11 .35.f 11 .36.a 11 .36.b 11 .36.c 11 .36.d 11 .36.e 11 .36.f 11 .36.g 11 .36.h 11 .36.i 11 .36.j 11 .36.k 11 .36.l describe expected relations among an investment’s NPV, company value, and share price calculate and interpret... Wording Change Wording Change 26 Corporate Finance 11 .36.f Corporate Finance 11 .37.a Corporate Finance 11 .37.b Corporate Finance 11 .37.c Corporate Finance 11 .37.d Corporate Finance 11 .37.e Corporate Finance 11 .37.f Corporate Finance 11 .37.g Corporate Finance 11 .37.h Corporate Finance Corporate Finance 11 .37.i 11 .37.j Corporate Finance 11 .37.k Corporate Finance 11 .37.l describe expected relations among an... else being equal www.passingscore.net 28 Corporate Finance 11 .40.a Corporate Finance 11 .40.b Corporate Finance 11 .40.c Corporate Finance 11 .40.d Corporate Finance 11 .40.e Corporate Finance 11 .40.f Corporate Finance 11 .40.g Corporate Finance 11 . 41. a Corporate Finance 11 . 41. b Corporate Finance 11 . 41. c Corporate Finance 11 . 41. d describe primary and secondary sources of liquidity and factors that influence... break-points explain and demonstrate the correct treatment of flotation costs www.passingscore.net Wording Change 27 Corporate Finance 11 .38.a Corporate Finance 11 .38.b Corporate Finance 11 .38.c Corporate Finance 11 .38.d Corporate Finance 11 .38.e Corporate Finance 11 .39.a Corporate Finance 11 .39.b Corporate Finance 11 .39.c Corporate Finance 11 .39.d Corporate Finance 11 .39.e Corporate Finance 11 .39.f... importance of independent board members in corporate governance identify factors that an analyst should consider when evaluating the qualifications of board members 11 .39.a 11 .39.b 11 .39.c 11 .39.d 11 .39.e 11 .39.f 11 .39.g 11 .40.a 11 .40.b 11 .40.c 11 .40.d describe primary and secondary sources of liquidity and factors that influence a company’s liquidity position compare a company’s liquidity measures with... www.passingscore.net 32 Equity 13 .46.j Equity 13 .46.k Equity Equity 13 .46.l 13 .47.a Equity 13 .47.b Equity 13 .47.c Equity 13 .47.d Equity 13 .47.e Equity 13 .47.f Equity Equity Equity 13 .47.g 13 .47.h 13 .47.i Equity 13 .47.j Equity 13 .47.k Equity 13 .48.a Equity 13 .48.b Equity 13 .48.c Equity 13 .48.d Equity 13 .48.e Equity 13 .48.f describe how securities, contracts, and currencies are traded in quote-driven, order-driven, and... between active and passive portfolio management describe selected market anomalies 13 .45.j 13 .45.k 13 .45.l 13 .46.a 13 .46.b 13 .46.c 13 .46.d 13 .46.e 13 .46.f 13 .46.g 13 .46.h 13 .46.i 13 .46.j 13 .46.k 13 .47.a 13 .47.b 13 .47.c 13 .47.d 13 .47.e 13 .47.f describe how securities, contracts, and currencies are traded in quote-driven, order-driven, and brokered markets describe characteristics of a wellfunctioning financial... returns based on historical data explain risk aversion and its implications for portfolio selection calculate and interpret portfolio standard deviation 11 .40.e 11 .40.f 11 .40.g 12 . 41. a 12 . 41. b 12 . 41. c 12 . 41. d 12 . 41. e 12 .42.a 12 .42.b 12 .42.c 12 .42.d 12 .42.e describe responsibilities of the audit, compensation, and nominations committees and identify factors an investor should consider when evaluating... describe the use of interbank offered rates as reference rates in floating-rate debt describe mechanisms available for issuing bonds in primary markets 14 .50.f 14 .50.g 14 .50.h 14 .50.i 14 .50.j 14 .50.k 15 . 51. a 15 . 51. b 15 . 51. c 15 . 51. d 15 . 51. e 15 . 51. f 15 .52.a 15 .52.b 15 .52.c identify companies for which the constant growth or a multistage dividend discount model is appropriate explain the rationale for using price... objectives of central banks contrast the costs of expected and unexpected inflation describe tools used to implement monetary policy 5 .17 .n 5 .17 .o 5 .18 .a 5 .18 .b 5 .18 .c 5 .18 .d 5 .18 .e 5 .18 .f 5 .18 .g 5 .18 .h 5 .18 .i 5 .19 .a 5 .19 .b 5 .19 .c 5 .19 .d 5 .19 .e 5 .19 .f 5 .19 .g 5 .19 .h 5 .19 .i describe the production function approach to analyzing the sources of economic growth distinguish between input growth and growth . www.passingscore.net 1 CFA Level 1 - LOS Changes 2 014 - 2 015 Topic LOS Level I - 2 014 (532 LOS) LOS Level I - 2 015 (529 LOS) Compared Ethics 1. 1.a describe the structure of the CFA Institute Professional. GDP 5 .17 .b compare the sum-of-value-added and value-of-final-output methods of calculating GDP Economics 5 .17 .c compare nominal and real GDP and calculate and interpret the GDP deflator 5 .17 .c compare. approaches 5 .17 .a calculate and explain gross domestic product (GDP) using expenditure and income approaches Economics 5 .17 .b compare the sum-of-value-added and value-of-final-output methods