CFA level 1 study note book4 2014

2014 I Levell Book SchweserNotes'" for the CFA· Exam Corporate Finance, Portfolio Management, and Equity Investments rz-: I{ A P LAN \!.) SCHOOL OF PROFESSIONAL AND CONTINUING EDUCATION BOOK - CORPORATE FINANCE, PORTFOLIO MANAGEMENT, AND EQUITY INVESTMENTS Reading Assignmenu and Learning Outcome Statemcnu Study Session 11 - Corporate Finance 11 Self·Test - Corporate Financc • • • 120 Study SelSion 12 - Ponfolio Management .• 124 Self·Test - Ponfolio Management 196 Study Session 13 - Equity: Marlect Otpnization, Marlcct Indices, and Marut Efficiency • • • • • 199 Study Session 14 - Equity Analysis and yal""tion 260 Self·Test - Equity Invc:stmenu • .• 322 Formulu • • • • • •.•• • • • •.• .• 326 Index • •• • • •• • •.• • • • .• .•.• •.• • • •.• .• 331 02013 Kaplan, Inc ~1 SCHWESERNOTES'" 2014 CFA LEVEL I BOOK 4: CORPORATE PORTFOLIO MANAGEMENT, At'lD EQUITY INVESTMEl\'TS FINANCE 020 I Kaplan Inc All rights reserved Published in 2013 by Kaplan Inc Printed in the United Scates of America ISBN: 978-1-4277-4908-6/1-4277-4908-6 PPN: 3200-4009 If this book docs DOC: have ehe hologram ~iththe Kaplan ScMl.-cser lOGOon the ~ck eeeee it ~'2.I :I Division o! Kaplan lec., and is in dim:, violation (ntill violato" of this law i ~at J r«:i:ucd distributed without permission of Kaplan Schwcscr of labal co ri t la,,'S.Your usistlIKC in qui ReqWM CFA In i.u.e dioclai",er: ·CFA" and Clunercd Financial Anal)"" a", uademvlcs owned by CFA Institute CFA Insatute (formerly the Association for Investment M&ftlscmcnt and Rescatch) doc, not codorse promote rmf'W or warrant the accun.ey of the produru or cn-ic:n ofFefC'd.by Kapb SChWCSCf,- Certain m:atcriaJ, conuiDCCl within this test arc the copyrishtcd property of CFA Institute The following i, the cop,ngh' di,cIoourc for these m.,eriab: ·Coppight 2013 CFA Insti.u.e Reproduced and tqlublnhed from 2014 Learning Oeeeeeee Sta.e_nb Le",II II and III '1llntionl ITom CFA'" Material, CFA lnati.u.e Standard, of rror ional Conduct and CFA In.tiNte·, Global 1""'CItmcDt I'uforrnancc Standards with pcrmi"ioD from CfA Inscitute All Rishtl Ractwd.- rrognm Thne materials Play not be copied with.out written pcnnission &om the author The unau-moriz:cd duplication of thele note' i, a ';"I tee of global copy.igh law and the CFA I",.i.u.e Code of Ethic, Your utinancc in punuin, potential viobtoN of this law is pat.1y apprcci.tccl Disclaimer: Tbc Schwner Notes should be used in conjuDCtion with the origioal ftadings , act forth by CFA IIlRirutc in their 2014 CfA tntll Study Guide The: inrormation contained in these Notes covers topics contained in the "adinp refereeced by CfA Institute and is bclic-ftd to be a~tc Howcwr their accun.cy canDOt be gu2nAt«d nor is any w:ananty COftY()'t'dal to your ultimate cum luccess The authors of the referenced rcadinp have not endorsed or sponsored these Noce, 02013 Kaplan Inc READING ASSIGNMENTS AND LEARNING OUTCOME STATEMENTS TM folIDwingllUlltrial is a r~ui~wof tM COrpOMItFinana Portfolio Managnntnt and E'luiry Inuntmtnts prindpln tksil"~d to aJJr~ss tM /taming out(tlmt stattments Itt fonh CF-AInstitute, by , STUDY SESSION 11 Reading Assignments COrpoMtt Finan