CFA 2019 level 2 schwesernotes book 1

最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 Contents Learning Outcome Statements (LOS) Welcome to the 2019 Level II SchweserNotes™ Study Session 1—Ethical And Professional Standards (1) Readings and 2: CFA Institute Code of Ethics and Standards of Professional Conduct Guidance for Standards I–VII Exam Focus Module 1.1: Introduction to the Code and Standards Module 2.1: Standards I(A) and I(B) Module 2.2: Standards I(C) and I(D) Module 2.3: Standards II(A) and II(B) Module 2.4: Standard III(A) Module 2.5: Standards III(B) and III(C) Module 2.6: Standards III(D) and III(E) Module 2.7: Standards IV(A), IV(B), and IV(C) 10 Module 2.8: Standard V 11 Module 2.9: Standard VI 12 Module 2.10: Standard VII 13 Key Concepts 14 Answer Key for Module Quizzes Study Session 2— Ethical And Professional Standards (2) Reading 3: Application of The Code and Standards Exam Focus Module 3.1: Ethics Case Studies Reading 4: Trade Allocation: Fair Dealing and Disclosure Exam Focus Module 4.1: Trade Allocation Reading 5: Changing Investment Objectives Exam Focus Module 5.1: Changing Investment Objectives Study Session 3—Quantitative Methods Reading 6: Fintech in Investment Management Exam Focus Module 6.1: Fintech in Investment Management Key Concepts Answer Key for Module Quiz Reading 7: Correlation and Regression Exam Focus Module 7.1: Covariance and Correlation Module 7.2: Linear Regression: Introduction Module 7.3: Hypothesis Tests and Confidence Intervals Module 7.4: Predicting Dependent Variables and Confidence Intervals Module 7.5: ANOVA Tables, R2, and SEE 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 Key Concepts Answer Key for Module Quizzes Reading 8: Multiple Regression and Issues in Regression Analysis Exam Focus Module 8.1: Multiple Regression: Introduction Module 8.2: Hypothesis Tests and Confidence Intervals Module 8.3: ANOVA and the F-test Module 8.4: Coefficient of Determination and Adjusted R-Squared Module 8.5: Dummy Variables Module 8.6: Assumptions: Heteroskedasticity Module 8.7: Serial Correlation Module 8.8: Multicollinearity 10 Module 8.9: Model Misspecification, and Qualitative Dependent Variables 11 Module 8.10: Supervised and Unsupervised Machine Learning 12 Module 8.11: Machine Learning Algorithms 13 Key Concepts 14 Answer Key for Module Quizzes Reading 9: Time-Series Analysis Exam Focus Module 9.1: Linear and Log-Linear Trend Models Module 9.2: Autoregressive (AR) Models Module 9.3: Random Walks and Unit Roots Module 9.4: Seasonality Module 9.5: ARCH and Multiple Time Series Key Concepts Answer Key for Module Quizzes Reading 10: Probabilistic Approaches: Scenario Analysis, Decision Trees, and Simulations Exam Focus Module 10.1: Probabilistic Approaches Key Concepts Answer Key for Module Quiz Topic Assessment: Quantitative Methods Topic Assessment Answers: Quantitative Methods Study Session 4—Economics Reading 11: Currency Exchange Rates: Understanding Equilibrium Value Exam Focus Module 11.1: Forex Quotes, Spreads, and Triangular Arbitrage Module 11.2: Mark-to-Market Value, and Parity Conditions Module 11.3: Exchange Rate Determinants, Carry Trade, and Central Bank Influence Key Concepts Answer Key For Module Quizzes Reading 12: Economic Growth and the Investment Decision Exam Focus 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 10 11 12 Module 12.1: Growth Factors and Production Function Module 12.2: Growth Accounting and Influencing Factors Module 12.3: Growth and Convergence Theories Key Concepts Answer Key for Module Quizzes Reading 13: Economics of Regulation Exam Focus Module 13.1: Economics of Regulation Key Concepts Answer Key for Module quiz Topic Assessment: Economics Topic Assessment Answers: Economics Formulas Appendix A: Student’s T-Distribution Appendix B: F-table at Percent (Upper Tail) Appendix C: F-Table At 2.5 Percent (Upper Tail) Appendix D: Chi-Squared Table Appendix E: Critical Values for the Durbin-Watson Statistic 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 List of pages 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 viii xi xi xii xiii xv xvi 10 11 12 13 14 15 16 17 18 19 20 21 23 24 25 26 27 28 29 30 31 32 33 34 35 36 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 83 84 85 86 87 89 90 91 92 93 94 95 97 98 99 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 155 156 157 159 160 161 162 163 164 165 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 205 206 207 208 209 210 211 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 TOPIC ASSESSMENT: ECONOMICS You have now finished the Economics topic section The following topic assessment will provide immediate feedback on how effective your study of this material has been The test is best taken timed; allow minutes per subquestion (18 minutes per item set) This topic assessment is more exam-like than a typical module quiz or QBank questions A score less than 70% suggests that additional review of this topic is needed Use the following information to answer Questions through Teresa Young, CFA, is the head of research for a large financial services firm based in New York City The company’s clients include pension funds, endowments, and large foundations Members of the research department include economists that perform short- and long-range forecasting, as well as analysts who follow industry trends and the various individual companies within the industry Many of the firm’s clients have globally diversified portfolios, and one of the responsibilities of Young’s group is to provide appropriate support to the firm’s portfolio managers One of the European equities managers approaches Young for assistance with a longtime client based in Dallas, Texas The client’s existing portfolio is well-diversified, with approximately 60% in domestic securities and 40% in global investments (primarily in Europe and Asia) The client is unhappy with the portfolio’s recent performance and is convinced that there is too much exchange-rate exposure because of the large foreign allocation The portfolio manager would like to provide evidence to the contrary to the client and believes the client is lacking a fundamental understanding of foreign exchange parity relations Young compiles some basic information regarding the theoretical relationships among exchange rates, interest rates, and inflation rates She also obtains information on some of the client’s key non-U.S holdings Young observes that the client currently has a large position in Banyo, a Japanese manufacturer and distributor of consumer electronics with a strong global market share The client also has a substantial investment in Seine Industries, a French producer of paper products whose primary market is Western Europe Current spot rates: 1.3200 USD ($) per EUR (€) 95 JPY (¥) per USD ($) Expected inflation rates: United States: 4.00% Euro: 6.50% 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 Japan: 8.00% Young is concerned about changes in Japanese monetary and fiscal policies Japan has been well integrated in global capital markets, and she expects that the policymakers in Japan will tighten monetary policy while adopting an expansionary fiscal policy for the coming three to five years She is also concerned about changes in the regulatory environment in Japan: Young’s analysis of Japanese budgets leads her to conclude that Japan is increasing funding to primary education, while the United States is increasing funding for post-secondary education Young then directs her attention to the French economy She collects several macroeconomic variables for the past 20 years The information is provided in Figure Figure 1: The French Economy: Historical Data GDP growth rate 1.8% Labor cost / total factor cost 0.36 Growth rate of labor 1.2% Growth rate of capital 1.67% Young then collects projections for France as follows: The rate of technological change is expected to be lower by 0.1% going forward The growth rate of labor will be similar to historical values The growth rate of capital will increase by 0.1% going forward Utilizing the spot exchange rate and the inflation rate information provided, the calculated JPY/USD exchange rate predicted six months from today by relative purchasing power parity (relative PPP) is closest to: A JPY/USD 90.28 B JPY/USD 96.90 C JPY/USD 98.65 When Young discusses the International Fisher Relation with her client, she should explain that it is based on real interest rate parity, which implies that: A forward rates already reflect any difference in expected real interest rates between countries B any expected inflation differential between countries will be brought back to equilibrium by consumers’ demands for the least expensive goods and services C any difference in real interest rates between countries will result in capital flows that cause real interest rates in those countries to 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 converge to the same level Under the Mundell-Fleming model, the planned changes in Japanese monetary/fiscal policy are least likely to result in: A a depreciation of the Japanese yen B an appreciation of the Japanese yen C a capital account surplus Regulations are least likely to be needed in the presence of: A externalities B informational frictions C symmetrical information Compared with the impact of the incremental spending on primary education in Japan, the planned incremental spending on post-secondary education in the United States is most likely to result in: A a higher growth in GDP B a lower growth in GDP C a similar growth in GDP Using the Cobb-Douglas production function, France’s growth rate of potential GDP is closest to: A 1.76% B 1.80% C 1.92% 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 TOPIC ASSESSMENT ANSWERS: ECONOMICS B Relative PPP hypothesizes that changes in nominal exchange rates over time are equal to national inflation rate differentials The equation for relative PPP is: %ΔS(A/B) = inflation(A) – inflation(B) Since the ¥ has the higher inflation rate, the ¥ should depreciate by 4% per year or 2% over months Therefore, E(S1) = Ơ95 ì 1.02 = Ơ96.90 (Study Session 4, Module 11.2, LOS 11.e) C The real interest rate parity condition is the theory that real interest rates will converge to the same level across different markets If real interest rate parity holds, then the level of real interest rates in one country will be identical to the level of real interest rates in a second country (Study Session 4, Module 11.2, LOS 11.e) A Under the Mundell-Fleming model, a restrictive monetary/expansionary fiscal policy in the presence of high capital mobility would lead to a capital account surplus (due to inflow of capital) and domestic currency appreciation Note that the question is asking for the “least likely” result (Study Session 4, Module 11.3, LOS 11.k) C Regulations are needed in the presence of externalities and informational frictions One example of a friction is asymmetrical information, which allows one market participant to have an advantage over another (Study Session 4, Module 13.1, LOS 13.c) A Allocation of education spending among primary, secondary, and postsecondary education can be an important determinant of growth In developed countries like the United States and Japan, incremental spending on postsecondary education will encourage innovation and growth to a greater degree than will spending on primary and secondary education (Study Session 4, Module 12.1, LOS 12.a) A Growth rate of output = (rate of technological change) + α(growth rate of capital) + (1 – α)(growth rate of labor) (1 – α) = labor cost / total factor cost = 0.36 (given) α = – 0.36 = 0.64 Plugging the data given and solving for rate of technological change gives: 1.8% = (rate of technological change) + (0.64)(1.67%) + (0.36)(1.2%) rate of technological change = 0.3% 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 Going forward, E(rate of technological change) = 0.3% – 0.1% = 0.2% E(growth in capital) = 1.67% + 0.1% = 1.77% Growth in labor is expected to be unchanged at 1.2% Growth in potential GDP = E(GDP growth rate) = E(technology growth) + α[E(growth in capital)] + (1 – α) [E(growth in labor)] = 0.2% + (0.64)(1.77%) + (0.36)(1.2%) = 1.76% (Study Session 4, Module 12.2, LOS 12.e) 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 FORMULAS Study Session 3: Quantitative Methods Covariance and Correlation sample covariance: sample correlation coefficient: t-test for correlation coefficient: with n − df Simple Linear Regression slope coefficient: intercept term: confidence interval for coefficient: coefficient t-test: with n − df predicted value of the dependent variable: confidence interval for a predicted value (simple linear regression only): ANOVA Table Information (Simple Linear Regression) total sum of squares (SST): regression sum of squares (RSS): sum of squared errors (SSE): coefficient of determination: 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 with n − df Multiple Regression predicted y-value: t-test for regression coefficient: with n − k − df confidence interval for regression coefficient: ANOVA: total variation (SST) = explained variation (RSS) + unexplained variation (SSE) mean squared error: MSE = mean regression sum of squares: MSR = F-test for multiple regression: , with k and n − k − df adjusted R2: Breusch-Pagan Chi-square test for heteroskedasticity: Durbin-Watson test for serial correlation: Time-Series Analysis AR model of order p, AR(p): Mean reverting level of AR(1): ARCH(1) model: Study Session 4: Economics Where applicable, ALL notation assumes A/B currency quote convention bid-ask spread (for base currency) = ask quote − bid quote cross rates with bid-ask spreads: 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 forward premium = (forward price) − (spot price) = F − S0 value of a forward currency contract prior to expiration: covered interest rate parity: uncovered interest rate parity: E(%ΔS)(A/B) = RA − RB Fisher relation: Rnominal = Rreal + E(inflation) international Fisher relation: Rnominal A − Rnominal B = E(inflationA) − E(inflationB) relative purchasing power parity: %ΔS(A/B) = inflation(A) − inflation(B) where: %ΔS(A/B) = change in spot price (A/B) labor productivity: output per worker Y/L = T(K/L)α growth accounting relation: growth rate in potential GDP = long-term growth rate of technology + α(long-term growth rate of capital) + (1 − α)(long-term growth rate of labor) or growth rate in potential GDP = long-term growth rate of labor force + long-term growth rate in labor productivity neoclassical growth theory: 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 sustainable growth of output per capita (g*) equals growth rate in technology (θ) divided by labor’s share of GDP (1 − α) sustainable growth rate of output (G*) equals sustainable growth rate of output per capita plus growth of labor (ΔL) 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 APPENDIX A: STUDENT’S TDISTRIBUTION STUDENT’S T-DISTRIBUTION 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 APPENDIX B: F-TABLE AT PERCENT (UPPER TAIL) 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 APPENDIX C: F-TABLE AT 2.5 PERCENT (UPPER TAIL) 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 APPENDIX D: CHI-SQUARED TABLE 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 APPENDIX E: CRITICAL VALUES FOR THE DURBIN-WATSON STATISTIC 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 All rights reserved under International and Pan-American Copyright Conventions By payment of the required fees, you have been granted the non-exclusive, non-transferable right to access and read the text of this eBook on screen No part of this text may be reproduced, transmitted, downloaded, decompiled, reverse engineered, or stored in or introduced into any information storage and retrieval system, in any forms or by any means, whether electronic or mechanical, now known or hereinafter invented, without the express written permission of the publisher SCHWESERNOTES™ 2019 LEVEL II CFA® BOOK 1: ETHICAL AND PROFESSIONAL STANDARDS, QUANTITATIVE METHODS, AND ECONOMICS ©2018 Kaplan, Inc All rights reserved Published in 2018 by Kaplan, Inc Printed in the United States of America ISBN: 978-1-4754-8004-7 These materials may not be copied without written permission from the author The unauthorized duplication of these notes is a violation of global copyright laws and the CFA Institute Code of Ethics Your assistance in pursuing potential violators of this law is greatly appreciated Required CFA Institute disclaimer: “CFA Institute does not endorse, promote, or warrant the accuracy or quality of the products or services offered by Kaplan Schweser CFA and Chartered Financial Analyst are trademarks owned by CFA Institute.” Certain materials contained within this text are the copyrighted property of CFA Institute The following is the copyright disclosure for these materials: “Copyright, 2018, CFA Institute Reproduced and republished from 2019 Learning Outcome Statements, Level I, II, and III questions from CFA® Program Materials, CFA Institute Standards of Professional Conduct, and CFA Institute’s Global Investment Performance Standards with permission from CFA Institute All Rights Reserved.” Disclaimer: The Schweser Notes should be used in conjunction with the original readings as set forth by CFA Institute in their 2019 Level I CFA Study Guide The information contained in these Notes covers topics contained in the readings referenced by CFA Institute and is believed to be accurate However, their accuracy cannot be guaranteed nor is any warranty conveyed as to your ultimate exam success The authors of the referenced readings have not endorsed or sponsored these Notes 最新CFA、FRM、AQF、ACCA资料欢迎添加微信286982279 ... 21 8 21 9 22 0 22 1 22 2 22 3 22 4 22 5 22 6 1 82 18 3 18 4 18 5 18 6 18 7 18 8 18 9 19 0 19 1 1 92 19 3 19 4 19 5 19 6 19 7 19 8 19 9 20 0 20 1 20 2 20 3 20 5 20 6 20 7 20 8 20 9 21 0 21 1 21 3 21 4 21 5 21 6 21 7 21 8 21 9 22 0 22 1 22 2 22 3... 12 0 12 1 12 2 12 3 12 4 12 5 12 6 12 7 12 8 12 9 13 0 13 1 1 32 13 3 13 4 83 84 85 86 87 89 90 91 92 93 94 95 97 98 99 10 1 1 02 10 3 10 4 10 5 10 6 10 7 10 8 10 9 11 0 11 1 1 12 11 3 11 4 11 5 11 7 11 8 11 9 12 0 12 1 12 2 12 3 ... 最? ?CFA? ??FRM、AQF、ACCA资料欢迎添加微? ?28 69 822 79 最? ?CFA? ??FRM、AQF、ACCA资料欢迎添加微? ?28 69 822 79 18 1 1 82 18 3 18 4 18 5 18 6 18 7 18 8 18 9 19 0 19 1 1 92 19 3 19 4 19 5 19 6 19 7 19 8 19 9 20 0 20 1 20 2 20 3 20 4 20 5 20 6 20 7 20 8 20 9 21 0 21 1 21 2 21 3 21 4 21 5 21 6 21 7 21 8