CFA一級課程框2-StudySessionEthics&ProfessionalStudySession2-QuantitativeStudySession4-EconomicCFA一級課程框2-StudySessionEthics&ProfessionalStudySession2-QuantitativeStudySession4-EconomicStudySession7-FinancialStatementStudySessionCorporate7StudySessionPortfolio7StudySession13-EquityStudySession15-FixedIncomeStudySessionDerivative5StudySessionAlternative3FrameworkofStudySession—MarketOrganization,IndicesandFrameworkofStudySession—MarketOrganization,Indicesand?MarketOrganizationandSecurityMarket??MarketStudySession—EquityAnalysisand??OverviewofEquityIntroductiontoIndustryandcompany?EquityValuation:ConceptandBasic3-CharacteristicsofaFinancialMainCharacteristicsofaFinancialMainFunctionsoftheFinancialMarket(Totallythree?Fulfilldifferententities’Saveandborrowmoney,raiseequitycapital,managerisks,tradeassetscurrentlyorinthefuture,andtradebasedontheirestimatesofassetDetermineinterestDeterminethereturns(i.e.,interestrates)thatequatethetotalsupplyofsavingswiththetotaldemandforborrowing.AllocatecapitaltoitsmostefficientThefinancialsystemallowsthetransferofassetsandrisksfromoneentitytoanotheraswellasacrosstime.??4-CharacteristicsofaFinancialCharacteristicsofaFinancialIntermediariesofFinancialMarket??????Brokers,DealersandExchangeInsuranceCompaniesClearinghousesand5-MarketMarket6-ProblemswhentherearenoMarketMarket6-ProblemswhentherearenoObjectivesofmarketFraudandtheft:thepotentialfortheftandfraudincreasesbecauseinvestmentmanagerstakeadvantageofunsophisticatedinvestors.ProtectunsophisticatedRequireminimumstandardsofcompetencytomakeiteasiertoperformvaluation.Insidertrading:Investorswouldexitthemarketandthusreducedliquidityiftheybelievetraderswithinsideinformationwillexploitthem.PreventinsidersfromexploitingotherCostlyinformation:Ifobtaininginformationisrelativelyexpensive,marketswillnotbeasinformationalefficientandinvestorswillnotinvestasmuch.RequirecommonfinancialreportingDefaults:Partiesmightnothonortheirobligationsinmarkets.Requireminimumlevelsofcapitalsothatparticipantswillhonorlong-termClassificationofassetsandClassificationofassetsandClassificationofassets?FinancialFixedincomevs.EquityPublicvs.DerivativeFinancialderivativePhysicalderivativeRealReal?7-ClassificationofassetsandClassificationofassetsandPositionsaninvestorcantakeinan???LongShortPosition8-ClassificationofassetsandClassificationofassetsandClassificationof???Primaryvs.SecondaryMoneyvs.CapitalmarketsTraditionalvs.Alternativemarkets9-OrganizationofthesecuritiesHowOrganizationofthesecuritiesHowsecuritiesaresoldthroughprimary?SoldPubliclyUnderwrittenOffering(themostcommonBestIndicationsofBookSoldPrivateOthertransactionShelfDividendReinvestmentRightsCompetitiveNegotiated??10-OrganizationofthesecuritiesSecondaryOrganizationofthesecuritiesSecondaryCapital?WhensecuritiesaretradedinasecondaryCallTradingforindividualstocksoccursatspecificAllbidsandasksaregatheredandthenanegotiatedpriceisproducedtomakethedemandquantityascloseaspossibletothesupplyquantity.ContinuousTradesoccuratanytimewhenmarketisThepriceisdeterminedeitherbyanauctionprocessorthroughadealerbid-askprocess.Therearedifferencesbetweendealermarketsandanauctionmarketincontinuousmarkets.11-OrganizationofthesecuritiesSecondaryOrganizationofthesecuritiesSecondaryCapital?HowsecuritiesaretradedinSecondaryOrder-DrivenBrokeredMarkets12-FrameworkofStudySession—MarketOrganization,IndicesandFrameworkofStudySession—MarketOrganization,Indicesand?MarketOrganizationandSecurityMarket??MarketStudySession—EquityAnalysisand??OverviewofEquityIntroductiontoIndustryandcompany?EquityValuation:ConceptandBasic13-IntroductionofsecuritymarketIntroductionofsecuritymarketDefinitionsaboutMarket?Asecuritymarketindex:isusedtorepresenttheperformanceofanassetclass,securitymarket,orsegmentofamarket.PriceApriceindexusesonlythepricesoftheconstituentsecuritiesinthereturncalculation.Arateofreturnthatiscalculatedbasedonapriceindexisreferredtoasapricereturn.ReturnAreturnindexincludesbothpricesandincomefromtheconstituentArateofreturnthatiscalculatedbasedonareturnindexiscalledtotal14-IntroductionofsecuritymarketIntroductionofsecuritymarketHowanindexis?????WhatisthetargetmarkettheindexisintendedtoWhichsecuritiesfromthetargetmarketshouldbeincludedintheindex?Howshouldthesecuritiesbeweightedintheindex?HowoftenshouldtheindexbeWhenshouldtheselectionandweightingofsecuritiesbere-15-IntroductionofsecuritymarketIntroductionofsecuritymarketUsesofSecurity-Market?????Reflectionofinvestorconfidence.Benchmarkofmanagerperformance.Measureofmarketreturnandrisk.Measureofbetaandrisk-adjustedModelportfolioforindex16-CharacteristicsofEquityCharacteristicsCharacteristicsofEquityCharacteristicsofEquityIndexes?????Multi-marketindexwithfundamentalweightingSectorIndexStyle17-CharacteristicsofFixed-IncomeSeveralissueswiththeconstructionCharacteristicsofFixed-IncomeSeveralissueswiththeconstructionoffixedincome?LargeuniverseofThefixedincomesecurityuniverseismuchbroaderthantheuniverseofareissuednotjustbyfirms,butalsobygovernmentsandgovernmentturnoverishighinfixedincomeindexessincebondmaymatureandbereplacedintheindex.?DealermarketsandinfrequentFixedincomesecuritiesareprimarilytradedbydealers,soprovidersmustdependondealersforrecent18-FrameworkofStudySession—MarketOrganization,IndicesandFrameworkofStudySession—MarketOrganization,Indicesand?MarketOrganizationandSecurityMarket??MarketStudySession—EquityAnalysisand??OverviewofEquityIntroductiontoIndustryandcompany?EquityValuation:ConceptandBasic19-EfficientCapitalMarketanditsEfficientEfficientCapitalMarketanditsEfficientCapitalMarketandthe?AninformationalefficientcapitalmarketiswheresecuritypricesadjustrapidlytotheinfusionofnewinformationCurrentsecuritypricesfullyreflectallavailableOnemethodofmeasuringamarket’sefficiencyistodeterminethetimeittakesfortradingactivitytocauseinformationtobereflectedinsecurityprices??Ifthereisasignificantlag,informedtraderscanusetheinformationpotentiallygeneratepositiverisk-adjusted?Marketpricesshouldnotbeaffectedbythereleaseofinformationthatwell20-EfficientCapitalMarketanditsEfficientCapitalMarketanditsInmarketsthatarehighlyefficient,investorscantypicallyexpectvaluestoreflectintrinsic??Themarketvalue:ofanassetisitscurrentTheintrinsicvalueorfundamentalvalueofanasset:isthevaluethatarationalinvestorwithfullknowledgeabouttheasset’scharacteristicswouldwillinglyInmarketsthatarehighlyefficient,investorscantypicallyexpectmarketvaluestoreflectintrinsicvalues.Ifmarketsarenotcompletelyefficient,activemanagerswillbuyassetswhichtheythinkintrinsicvaluesaregreaterthanmarketvaluesandsellassetsforwhichtheythinkintrinsicvaluesarelessthanmarketvalues.??21-EfficientCapitalMarketanditsThreeformsofmarket Weak- SemiStrong Strong- MarketEfficientCapitalMarketanditsThreeformsofmarket Weak- SemiStrong Strong- Market Public Allinfo. 22-Weak-FormMarketTechnicalAnalysisSemiStrong-FormPublicTechnicalAnalysisFundamentalAnalysisStrong-FormAllTechnicalAnalysis×FundamentalAnalysis×NobodycanwinthemarketPublicPrivateMarketNonmarketTests,ImplicationsandConclusionsofTests,ImplicationsandConclusionsofMarket??Definition:somethingdeviatesandhelpstodisprovetheMostevidencesuggestsanomaliesarenotviolationsofmarketefficiencybutareduetothemethodologiesusedinanomalyresearch,suchasdataminingorfailingtoadjustadequatelyforrisk.23-BehavioralBehavioral?concernsabouttowhatBehavioralBehavioral?concernsabouttowhatextentthepsychologicalcharacteristicsinvestmentseitherbyindividualsorBehavioralbiasesthathavebeenidentified?Lossaversion:referstothetendencyforinvestorstobemoreriskaversewhenfacedwithpotentiallossesandlessriskaversewhenfacedwithpotentialOverconfidencebias:explainsthatinvestorsoranalystsareoverconfidentintheirearningforecastswhichresultintheoverestimationofgrowth,good?Rationalvs.EfficientmarkethypothesisthatonlymarketisBehavioralfinanceisusedtoexplainsomeofthemarketanomaliesasirrationaldecisions.24-FrameworkofStudySession—MarketOrganization,IndicesandFrameworkofStudySession—MarketOrganization,Indicesand?MarketOrganizationandSecurityMarket??MarketStudySession—EquityAnalysisand??OverviewofEquityIntroductiontoIndustryandcompany?EquityValuation:ConceptandBasic25-CharacteristicsofequityClassificationofCharacteristicsofequityClassificationofEquity?Commonarethemostcommonformofequityandrepresentanownershipinterest.Commonshareholdershavearesidualclaim(aftertheclaimsofdebtholdersandpreferredstockholders)onfirmassetsifthefirmisliquidatedandgovernthecorporationthroughvotingrights.Inastatutoryvotingsystem,eachshareheldisassignedonevoteintheelectionofeachmemberoftheboardofdirectors.Undercumulativevoting,shareholderscanallocatetheirvotestooneormorecandidatesastheychoose.26-CharacteristicsofequityClassificationofEquity?CallablecommonCharacteristicsofequityClassificationofEquity?CallablecommonCallablecommonsharesgivethefirmtherighttorepurchasethestockatapre-specifiedcallprice.Investorsreceiveafixedamountwhenthefirmcallsthe?PutablecommonPutablecommonsharesgivetheshareholdertherighttosellthesharesbacktothefirmataspecificprice.Aputoptiononthesharesbenefitstheshareholderbecauseiteffectivelyplacesafloorundertheshare27-CallablecommonAdvantagetoPutablecommonAdvantagetoCharacteristicsofequityClassificationofEquity?PreferenceCharacteristicsofequityClassificationofEquity?PreferencePreferenceshares(orpreferredstock)havefeaturesofbothcommonstockanddebt.Featuresofcommonstock:donotFeaturesofdebt:fixeddividendpayment,butdividendsarenotcontractualobligation.Preferredshareshavelessriskthancommonsharesbecausethedividendisstableandtheyhavepriorityovercommonstockinreceivingdividendsandintheeventofliquidationofthe?Cumulativepreferenceareusuallypromisedfixeddividendsandanydividendsthatarenotmustbemadeupbeforecommonshareholderscanreceive28-PreferenceDividendsarenotcontractualCumulativepreferencePromisedfixedCharacteristicsofequityClassificationofCharacteristicsofequityClassificationofEquity?ConvertiblepreferenceConvertiblepreferencesharescanbeexchangedforcommonstockataconversionratiodeterminedwhenthesharesareoriginallyissued.IthasthefollowingThepreferreddividendishigherthanacommonIfthefirmisprofitable,theinvestorcanshareintheprofitsbyconvertingtheirsharesintocommonstock.Turnsmorevaluablewhenthecommonstockprice29-Non-domesticEquityDirect?DirectinvestinginthesecuritiesNon-domesticEquityDirect?Directinvestinginthesecuritiesofforeigncompaniessimplyreferstoaforeignfirm’ssecuritiesinforeignDepository?Depositoryreceipts(DRs)representownershipinaforeignfirmandtradedinthemarketsofothercountriesinlocalmarketGlobalregistered?Globalregisteredshares(GRS)aretradedindifferentcurrenciesonexchangesaroundtheBasketoflisteddepositoryAbasketoflisteddepositoryreceipts(BLDR)isanexchange-tradedfund(ETF)thatisacollectionofDRs.30-RiskandReturnCharacteristicsofEquityEquity?ConsistRiskandReturnCharacteristicsofEquityEquity?ConsistofGainsfromdividendsandthereinvestmentofdividendshavebeenimportantpartequityinvestors’long-term??capitalgainsorlossesfromchangesinshareforeignexchangegainsorEquity??ismostcommonlymeasuredasthestandarddeviationofPreferredstockislessriskythancommonpreferredstockpaysaknown,fixedpreferredstockholdersreceivetheirdistributionsbeforecommonhaveaclaiminliquidationpriorityovertheclaimsofcommon31-RiskandReturnCharacteristicsofEquityEquityriskRiskandReturnCharacteristicsofEquityEquityrisk?Cumulativepreferredshareshavelessriskthannon-cumulativeCumulativepreferredsharesretaintherighttoreceiveanydividendsbeforeanycommonstockdividendscanbe?Putablesharesarelessriskyforinvestor(forbothcommonandifthemarketpricedrops,theinvestorcanputthesharesbacktotheatafixed?andcallablesharesaremoreriskyforinvestor(forbothcommonpreferredifthemarketpricerises,thefirmcancalltheshares,limitingthepotentialofthe32-FrameworkofStudySession—MarketOrganization,IndicesandFrameworkofStudySession—MarketOrganization,Indicesand?MarketOrganizationandSecurityMarket??MarketStudySession—EquityAnalysisand??OverviewofEquityIntroductiontoIndustryandcompany?EquityValuation:ConceptandBasic33-Three-StepValuationTop-down??Three-StepValuationTop-down???GeneralEconomicIndustryInfluences;CompanyAnalysis.Economicandindustryenvironmentwillhaveamajorinfluenceonsuccessofafirmandtherealizedrateofreturnonits34-Three-StepValuationFrameworkforindustryDemographicGovernmentalMacroeconomicThree-StepValuationFrameworkforindustryDemographicGovernmentalMacroeconomicNewEntrantInternalCompetitive(affectedbyeconomiesofscale,costadvantages,otherbrandloyalty,customers'switchingcosts,Product,governmentregulation.industry'scompetitivestructure,corporaterivalries.costconditions.entryandexitbarriers)LireCycle(embryonic,growth,shake-out,mature.BusinessCycleAnalysisbyPositionontheExperienceProduct/ServiceSubstitutionSocial35-SupplierBargainingForces(affectedbynumberofindustriesbuyingsuppliers'products.Ofsupplysubstitutes,switchingcostsofsuppliers'customers.industry.andcustomersabilitytoenterindustry.)(affectedbynumberofsuppliers.numberofswitchingcoststoothersuppliers.numberofcontractedsuppliers.customers‘a(chǎn)bilitytoproducetheproductthemselves)Group.ofComplementaryFrameworkofStudySession—MarketOrganization,IndicesandFrameworkofStudySession—MarketOrganization,Indicesand?MarketOrganizationandSecurityMarket??MarketStudySession—EquityAnalysisand??OverviewofEquityIntroductiontoIndustryandcompany?EquityValuation:ConceptandBasic36-EvaluateaIntrinsicvaluevs.EvaluateaIntrinsicvaluevs.Market?Analystsusevaluationmodelstoestimatetheintrinsicvaluesofstocksandcomparethemtothestocks’marketpricestodeterminewhetherindividualstocksareovervalued,undervalued,orfairlyvalued.MarketpriceisassumedtomovetowardintrinsicThingstoconsiderwhendecidingwhethertoinvestbasedonestimatedintrinsicvalue:??PercentagedifferencebetweenmarketpricesandestimatedvaluesConfidenceoftheappropriatenessofthevaluationmodelConfidenceoftheinputsusedinthevaluationmodelReasonswhystockisAssumethatmarketpricewillactuallymovetowardestimatedintrinsicvalueandthatitwilldosotoasignificantextentwithintheinvestmenttime37-EvaluateamajorcategoriesofequityvaluationEvaluateamajorcategoriesofequityvaluation?Discountedcashflowmodels(orpresentvaluedividenddiscountfreecashflowtoequity?Multipliermodels(marketmultipletheratioofstockpricetotheratioofenterprisevalueto?Asset-based38-CFA一級課程框39-StudySessionEthics&ProfessionalStudySession2-QuantitativeStudySession4-EconomicCFA一級課程框39-StudySessionEthics&ProfessionalStudySession2-QuantitativeStudySession4-EconomicStudySession7-FinancialStatementStudySessionCorporate8StudySessionPortfolio5StudySession13-EquityStudySession15-FixedIncomeStudySessionDerivative5StudySessionAlternative3FrameworkofalternativeFundsoffundsFeestructuresInvestmentvehiclesFrameworkofalternativeFundsoffundsFeestructuresInvestmentvehiclesFuturesHedgePrivateRealOtherDueRiskRisk-return40-.AlternativeTraditionalvs.alternative.AlternativeTraditionalvs.alternativeTraditional:long-onlyinvestmentsinstocks,bonds,andcash,Alternative:otherinvestmentvehicleswhichfalloutsidethescopeoftraditionalinvestments,extensiveuseofleverage.CharacteristicsofalternativeIlliquidityofunderlyingNarrowmanageLowcorrelationwithtraditionalLowlevelofregulationandlessNotalwayse.g.highcorrelationinfinancialcrisisLimitedandpotentiallyproblematichistoricalriskandreturnUniquelegalandtax41-.AlternativeReturns.AlternativeReturnsforalternativeEmpirically,themeanreturnstohedgefunds,realestate,privateequity,andventurecapitalexceededthemeanreturnstoglobalstocksandbonds.Maybeduetoactiveexploitationoflessefficientlypricedassets,illiquiditypremiums,and/oraccountleverage.Mayalsobetheresultoftaxadvantage.RisksforalternativeTheaveragestandarddeviationishigherthantraditionalButhedgefundshaveloweraveragestandarddeviationandhighermeanreturn,thismaybeduetohedgefundindices’reportingbiases.42-.AlternativeInvestments-HedgeManage.AlternativeInvestments-HedgeManageportfoliosofsecuritiesandderivativepositionsusingavarietyofstrategies.Longandshortpositions,highlyleveraged,absolutereturn.PrivateequityInvestinstart-upcompaniesthatarenotpubliclytraded,orinpubliccompanieswiththeintenttotakethemprivate.RealOutrightownershiporthroughrealestateequity/debtinvestments.E.g.MBS,REITs,etc.Inphysicalcommodityproducts,eitherthroughowningcashinstruments,utilizingderivatives,orinvestinginbusinessesengagedintheproductionofTangible(Finewine,art,stamp,coin,etc.)andintangible?43-.AlternativeInvestments-Investment.AlternativeInvestments-InvestmentMostcommonstructure:Limitedpartner(LP):LPistheinvestorswhounderstandandabletoassumetherisksintheinvestment.LPownsafractionalinterestbasedontheirinvestmentandasagreedtobythepartners.LP’sfractionalinterestiscalledhis/hershareoftheThepartnershipsarelocatedintax-efficientGeneralpartner(GP):GPrunsthefundTypicalfeestructuresManagementfee:basedonassetsunderIncentivefee:basedonrealizedHighwater44-.HedgeCharacteristicsof.HedgeCharacteristicsofhedgeAggressivelymanagedinvestmentportfoliosacrossassetclasses.Useofleverages,takelongandshortpositions,and/orusesderivatives.Aimedathigherreturns,eitherinabsoluteorrelativePrivateinvestmentpartnershipopentoalimitednumberofinvestorswillingandabletomakealargeinitialinvestment.HedgefundindicesmaynotreflectactualSurvivorshipBackfillLessrestrictedthantraditionalOftenimposerestrictionsonLockup Notice 45-.FundsofFundsofFunds.FundsofFundsofFundsoffundsarefundsthatholdaportfolioofhedgeFOFsenablesmallinvestorstohavereturnsinhedgeFOFshavesomeexpertiseinconductingduediligenceonhedgeNegotiatebetterredemptiontermsforFOFsinvestinnumeroushedgefunds,diversifyingacrossfundstrategies,investmentregions,andmanagementstyles.46-R66.PrivatePrivateR66.PrivatePrivateequity(PE):investinginprivatelyownedcompaniesorinpubliccompanieswiththeintenttotaketh