TopicWeightingsinCFALevelI

StudySession1EthicalandProfessionalStandards15-20

StudySession2-3QuantitateMethods8-12

StudySession4-5Economics8-12

StudySession6-9FinancialReportingandAnalysis13-17

StudySession10-11CorporateFinance8-12

StudySession12-13Equity|nvestments10-12

StudySession14-15Fixed|ncome10-12

StudySession16Derivatives5-8

StudySession17AlternativeJnvestments5-8

StudySession18-19PortfolioManagement5-5

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菩業(yè).創(chuàng)新.增值

S512EquityInvestment(1)

EquityInvestments

S513EquityInvestment(2)

?R41EquityValuation:

ConceptsandBasicTools

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蕓業(yè).創(chuàng)新.增值

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蕓業(yè).創(chuàng)新.增值

Framework

5.Classificationofmarkets

?Primaryvs.Secondarymarkets

?Moneyvs.Capitalmarkets

?Traditionalvs.Alternativemarkets

6.Positionsinanasset

7.Instructionsoftransactionprocesses

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1706(1)1712(1)1912(1)

.Intermediariesoffinancialmarket

Brokers,dealers,and

Helpwiththetradeofsecurities.

exchanges

Managetheprocessofbuyingassets,placingthemina

Securitizerspocl,thensellingsecuritiesthatrepresentownershipofthe

pocl.Thisprocessiscalledsecurrization.

Absorbdepositsbypayinginterestoncustomerdeposits.

Depositorymstltutlons1ProvidetransactIonservicesononehand,andthenmake

loanswiththedepositsontheetherhand.

Createinsurancecontracts(policies)thatprovidea

paymentintheeventthatsomelossoccurs；

1nsurancecompaniesThebuyersbenefitbecausetheycaneasilyobtaintherisk

transfers,

Mcralhazard;adverseselection：fraud.

7-57蕓業(yè).創(chuàng)新.增值

1406(2)1412(1)

1512(1)1706(1)

?Intermediariesoffinancialmarket

1FinancialintermediariesTheservicesthattheyprovide

Arbitrageurs

Clearinghouses；arrangeforfinalsettlementoftradesto

eus-todians丁holdsecuritiesonbehalfoftheirclientsto

preventthelossofsecuritiesthroughfraud,oversight,or

naturaldisaster.

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蕓業(yè).創(chuàng)新.增值

1406(1)

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(1)

1706(1)1806(1)1906

(2)

Classificationofmarkets

JPrimarymarket:theplaceforfirmstopubliclyrise

capital.IPO(initialpublicofferings),Seasoned

Secondarymarketsofferings(secondaryissues)

/Secondarymarket

instruments(one-yearmaturityorless).

/Capitalmarkets:financialmarketsthattrade

/Traditionalinvestmentmarkets:marketsfor

TraditionalVStraditionalinvestments,includeallpubliclytraded

Alternativemarketsdebtsandequities.

/Alternativemarkets:maiketforinvestmentsother

thantraditionalsecuritiesinvestments.

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蕓業(yè).創(chuàng)新.增值

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1706⑴1712(1)

>Howsecuritiesaresoldthroughprimarymarket

?estefforts;

Soldpublicly

ndicationsofinterest

/Shelfregistration;

/Dividendreinvestmentplan

/Rightsoffering.

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蕓業(yè).創(chuàng)新.增值

Classificationofmarkets

>Howsecuritiesaresoldthroughprimarymarket-soldpublicly

?Differencebetweenunderwrittenofferingandbestefforts.

UnderwrittenofferingBestefforts

GuaranteesthesaleoftheissueNotobligatedtobuytheunsoldportion

nvestmentbankshavestrongincentives

tochoosealowpricethatbankscannvestmentbankgenerallyaresupposed

allocatevaluablesharestobenefittheirtoselecttheofferingpricethatwillraise

themostmoney.

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蕓業(yè).創(chuàng)新.增值

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1706(I)1806(1)1812(I)

HowsecuritiesaretradedinSecondaryMarkets

Order-driven

market

/Brokersarrangctradesamongtheirclients.Tradingassetsarc

Brokeredsomethinginfrequentlytradedandexpensivctocarryin

marketsinventory,includingverylargeblocksofstock,realestate

properties,fineartmasterpieces.

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蕓業(yè).創(chuàng)新.增值

Classificationofmarkets

?Howsecuritiesarctradedinsecondaryinarkets

andthenanegotiatedpriceisThepriceisdeterminedeitherby

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1506(1)1512(1)1606(1)

1712(1)

?Positionsinanasset

?Longposition

?Peoplehavelongpositionswhentheyownassetsorcontracts;

?Benefitfbnnanincreaseintheprice.

?Shortposition

?Peoplehaveshortpositionswhentheyhavesoldassetsthattheydonot

own,orwhentheywriteandsellcontracts.

,Forashort-sale,thcprocedureisasbelow

JBorrowsecuritiesfromsecuritylenderswhoarelongholders.Then

selltheborrowedsecuritiestoothertraders;

/Closetheirpositionsbyrepurchasingthcsecuritiesandreturning

themtothesecuritylenders;

/Maintaintheproceedsofshort-salesascollateral.

,Benefitfromadecreaseintheprice.

?Thepotentialgainsonashortpositionarelimiiedtonomorethan100

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蕓業(yè).創(chuàng)新.增值

?Leveragedpositions

Buyonmargin：traderscanbuysecuntiesbyborrowingsomeofthe

Leverageratio=l/margin

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蕓業(yè).創(chuàng)新.t旨值

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1706(1)1812(1)2012(1)

?Marginrequirement:therequiredequitypositioniscalledthemargin

marginpurchase;

/MaintenancemarginIstheInvestorsrequiredequitypositionin

theaccount;

JMargincalkifaninvestor1smarginaccountbalancefallsbelowthe

maintenancemargin,thebuyerwillreceiveamargincallandwill

berequiredtoeitherliquidatethepositionorbringtheaccount

backtoitsinaintcnancc(minimuin)marginrcquircinent.

/Margincallpriceforaleverageposition.

PO=&1?iM

1-MM

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蕓業(yè).創(chuàng)新.增值

Instructionsoftransaction

Ilimit

/Instractionsconccmtlicvolumeofthctrade

?All-or-nothingorders.

/Good-till-canceliedorders(GTC);

/Immediateorcance1orders;

JGood-on-closeorders;

/Good-on-openorders;

/Stopordcrs(Emphasismomcntuineffcct)

,stop-sellorder;

r

iUsuallynotattachedtoanorde.

-Mocifvh(，炳"ic“ule~~rtw~twde—

蕓業(yè).創(chuàng)新.增值

1906(1)

?Instructionsoftransactionprocesses

?Behindthemarket:Abuyorderplacedbelowthebestbidorasellorder

placedabovethebestoffer;

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蕓業(yè).創(chuàng)新.t旨值

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?Instructionsoftransactionprocesses

OrderPrices

BidsOffers(As比)

Thesesell\\Talsosay

3,0thatare.

<The

______________28_

ThebidandThcspacebestbidandofferis

insidemarket.Ifanewlimitorder

__anewmarket.

ITheh551bidis^tthemarket.

25

24

23themar婦L

22

TheIcut

mar蝴;57

蕓業(yè).創(chuàng)新.t旨值

SecurityMarketIndices

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蕓業(yè).創(chuàng)新.t旨值

Framework

?Equal-Weightedlndex

?MarketCapitalization-Wcightcdlndcx

?AFloat-AdjustedMarketCapitalization-

WeightedIndex

?Fundamentalweighting

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蕓業(yè).創(chuàng)新.增值

::?尸

I::戰(zhàn)::

Apriceindexnefleetonlyhepricesoiheconsttient

sccuritcswihinhcindex

Apriceretimmeasuresonlypriceappreciaionorpercenage

changeinprice.

At)mretiniindexitfleetnobnlyhepricesoihe

constticnfcccuritcsbualsohcreinvestnenbfallincome

RctumIndcxlrcceivcdsinceinccpion;

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蕓業(yè).創(chuàng)新.增值

Weightingschemesforstockindexes

Price-weightedindexpiILv-vvClgJllCUlIlUvA

Arithineticmean:x,isthereturneachstock

changeinaverageindexvalue=——

Equal-weightedindexGeometricmean:xp1+hprn

changeinaverageindexvaluex/LX2..x-1

currenttotalmarketvalueofindexstocks....

---n-iiXUdovyCdllllUvXvdluv

baseyeartotalmarketvalueofindexstocks

A

Weightingbyusingmeasuresofacompandssizethatare

Fundamentalweightingindependentofitssecuritypricetodeterminetheweight

oneachconstk^cntsecurity.(E.G.bookvalue,revenue,etc.

蕓業(yè).創(chuàng)新.增值

一en人人

EquyneesAltra。@tt

tm

?Broadmarketindex

?Multi-marketindex

?Multi-marketindexwith

fundamcntalweighting/Largeuniverseof

?Sectorindexsecurities

?Styleindex

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蕓業(yè).創(chuàng)新.增值

?Rebalancing

/Tomaintaintheweightofeachsecurityconsistentwiththeindex's

Reconstitution

inanindex;

/Constituentsecuritiesthatnolongermeetthecriteriaarereplaced

withsecuritiesthatdomeetthecriteria.

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蕓業(yè).創(chuàng)新.t旨值

Reading

38

MarketEfficiency

27-57

蕓業(yè).創(chuàng)新.增值

i.WhatisEfficientCapitalMarket

Framework

3.Threefbnnsofmarketefficiency

Tneweak-fbrmEMH

Tnesemi-strongformEMH

Tnestrong-fbrmEMH

4.Tests,ImplicationsandConclusionsof

EMH

5.MarketAnomalies

6.BehaviorFinance

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蕓業(yè).創(chuàng)新.增值

Weak-Form-■!Semi-Strong—Strong-Form

o

■■IAUiiUb^vailabk

.I

Marketinfot11

N11；I!

esAssumptionImplication

Weak-formEMHMarketinfo.TechnicalanalysisX

Semistrong-formTechnicalanalysisX

Publicinfo.

FMHFundanicntalanalysisX

TechnicalanalysisX

Strong-formEMHA11?1FundamentalanalysisX

Nobod、Ganwinthemarkst-----X—

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1406(2)1412(1)1612(1)1706(1)

1712(1)1812(1)1906(1)

Economicfundamentals

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1812(1)1906(1)2012(1)

Behavioralbiasesthathavebeenidentifiedinclude

OverconfdencebiasexpIainsthatinvestorsoranalystsare

Overconfidcnce

Representativeness

Gambler*sfallacy

Mentalaccounting

Conscrvatism

Investorsarcwillingtorealizegainsbutiinwillingtorealize

losses.

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蕓業(yè).創(chuàng)新.增值

OverviewofEquitySecurities

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蕓業(yè).創(chuàng)新.增值

1.ClassificationofPublicEquitySecurities

Framework2.PrivateEquitySecurities

3.Non-domesticEquitySecurities

4.RiskandRetuniCharacteristicsofEquity

Securities

33-57

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1812(1)

Representanownershipinterestinacompanyandarethe

Commonshares

Givetheissuingcompanytheoption(orright),butnotthe

Callablecommonsharcsbbligation,tobuybacksharesfrominvestorsatacallprice

thatisspecifiedwhenthesharesareoriginallyissued.

Giveinvestorstheoptionorrighttoselltheirshares(i.e.,

Pvtablccommonsharcsf'put"them)backtotheissuingcompanyatapricethatis

specifiedwhenthesharesareoriginallyissued.

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蕓業(yè).創(chuàng)新.增值

Characteristicsofequitysecurities

securities

I

distnbutionofthecompany*snetassetsuponliquidation.

Entitleshareholderstoreceiveanadditionaldividendifthe

preferencesharescompany'sprofitsexceedsapre-specifiedlevel.

Convertiblepreferencesharesentitleshareholdersto

converttheirsharesintoaspecifiednumberofcommon

shares

___________________V

菩業(yè).創(chuàng)新.增值

1706(1)1906(1)2012(1)

?Riskandreturnofequitysecurities

?Theriskismostcommonlymeasuredasthestandarddeviationof

returns(收益的標準差).

Low4--------------risk--------------->High

Preferredstock<Commonstock

Putablestock<Callablestock

Cumulativepreferredstock<Non-cumulativepreferredstock

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菩業(yè).創(chuàng)新.增值

Non-domesticsecurities

DirectinvestingIstobuyandsellsecuritiesdirectlyinfbreignmarkets.

Arecommonsharesthataretradedondifferentstock

exchangesaroundtheworldindifferentcurrencies.

redDR;

,UnsponsoredDR;

Americandeposito1yreceipts(ADRs).

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蕓業(yè).創(chuàng)新.增值

IntroductiontoIndustryandcompanyAnalysis

38-57

菩業(yè).創(chuàng)新.增值

Framework

BusinessCycle

Statisticahncthods

4.Companyanalysis

Competitivestrategies

39-57

菩業(yè).創(chuàng)新.增值

-Growthisslow;productpriceishigh;substantialinvestinentis

required;highriskoffailure?

fallingpriccs;incrcasingprofitability.

jGrowthturnsnegative;decliningdemandandprices;

D__

J

蕓業(yè).創(chuàng)新.增值

firm:Anon-cyclicalcompanyisonewhosepcrfbnnanccis

/Examplesinclude:stapleconsumergoods(fbodandbeverage),

householdandpersonalcareproducts,healthcare,andutilities;

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蕓業(yè).創(chuàng)新.增值

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?Barrierstoentry

/lowbarrierstoentry->littlepricingpower;

/highbarrierstoentrydonotnecessarilymeanhighpricingpower;

/Stablemarketsharestypicallyindicatelesscompetitiveindustries.

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蕓業(yè).創(chuàng)新.增值

?Industryinfluences

ACompetitiveAdvantage

AAnalysisofthecompctitivccnvironmentwithanemphasisonthe

implicationsoftheenvironmentfbrcorporatestrategyisknownasstrategic

analysis.Michaelporter*s"fiveforces1*frameworkisaclassicstartingpoint.

?Rivalryamongexistingcompetitors:whichisafunctionofthe

industry'scompctitivcstructure;

?ThreatQfsubstitutes:whichcannegativelyaffectdemandifcustomers

扣。theirneeds'

seotherwaysofsatisfying

蕓業(yè).創(chuàng)新.增值

43-57

?Companyanalysis

,Focus:thefirmtargetsanichewitheitheracostoradifferentiation

fbcus.

ILow-coststrategyProductdifferentiationstrategy

*Strivetobecomethelow-cost,Attempttoprovideproductsand

producers;servicesthatarcunique;

■

■

appealingtocustomersand

sustainableovertime;

t%。t_0c；

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蕓業(yè).創(chuàng)新.增值

八

EquityValuation:ConceptandBasicTool

45-57

菩業(yè).創(chuàng)新.增值

i.Evaluateasecurity

Framework2.Majorcategoriesofequityvaluation

models

46-57

菩業(yè).創(chuàng)新.增值

1806(I)

I

?Thedeclarationdate;

?Theex-dividenddate;

?Theholder-of-recorddate;

Thepaymentdate.

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1706(1)1712(1)1806(1)

?Thepreferredstockholdersarepromisedtoreceiveastateddividend

foraninfiniteperiod;

?Preferredstockisperpetuitysinceithasnomaturity;

,Valuationmodclofapreferredstock

D_D

Vz,P=

一r-N

pu(1+1P)幾

48-57

菩業(yè).創(chuàng)新.增值

JAssumptionfortheinfiniteperiodD(3M

?Dividendsgrowataconstantrate;

V=Dc(l+gc)iD6+,(o

O十5十十

r

(1+幾)(1+e)(1+)

V=D41+gc)=Di

rc-gc獲

49-57

菩業(yè).創(chuàng)新.增值

?Discountedcashflowmodels

/Importantconclusion

?Small(hangesinhedfferencebetveenrandgwillcause

$r*changesinhet氣’產(chǎn)？壓

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菩業(yè).創(chuàng)新.增值

1612(1)1906(1)

/Thegrowthratestartsatahighlevelforarelativelyshortperiod

oftime,thenrevertstoalong-runperpetuallevel.

'OjviiendGroxvth-?.

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菩業(yè).創(chuàng)新.增值

1412(1)1506(1)1712(1)

?Pricemultipleapproach

?Undercircumstancesoffirmswithdifferentsizes,indifferent

industriesorwithdifferentgrowthrate,thecomparablemay

sufferamalfunction.

/Disadvantagesofusingpricemultiples

?Conclusiondrawnunderthecomparableandfundamenta1

methodmaybereverse;

?(Pricemultiplesmaylosevaliditywhenfirmsusedifferent

accountingmethods;

?Pricemultiplesfbrcyclicalfirmsmaybehighlyinfluencedby

currenteconomicconditions.

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