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SCHWESER QUICKSHEET LEVEL 1 PDF SERIES

National bond marlut includes domestic bonds andĬomputing Ind ex Prices Estock prices Price-weighted Index=-='-.- adjusted divisor V:ilue-weighted lndexĮ(amcnc priccs)(#sharcs) X base value Dbase year prices)(# base year shares)

k mu.st be grea1er than g (or 1T1Ath will noc work).Įx«utton instrucnons: how co trade e.g., marker.

Con.rant growth rate, g._, never changes.

Stock pays dividends constant growth rate. Crirical assumptions of infinite pcnod DOM.

Small changes in difference berween k, and g, cause large changes in stock's value.

~ difference 11arrows, value of stock rises.

As difference becween k, and g, widms.

I::V a1 lase coupon dace K (I + YTM)''T accrued intercn coupon payment >< (tff) where: c = days from mosc recent coupon payment co trade scrclcment T = days in coupon payment period M4trix pricing: For illiquid bonds, use yields of bonds with same credit quality co estimate yield adjust for matuncy differences wich linear interpolation. Variance and Standard Deviation Viiriance: average of squased deviations from mean N

observation from normal distribucion represents # of standard deviations a given observation is from popularion mean.

Normal Distributions Normal distriburion is complerely described by irs Requi.r ed Rate of Re.turn Cornponencs: I.

Perpetuiries: annuities with infinite lives.

Annuity due: cash Aow at beginning-of.rime period.Ordinary r.t>muity: cash Bow at end-of-time period.

SCHWESER QUICKSHEET LEVEL 1 PDF SERIES

Annuities: series of equal cash Rows chat occur ar evenly spaced intei:vals over time.Present value (PV): current value of some future cash Aow PY = FV/(1 + 1/Y)".Furure value (FV): amounr ro which investment grows after one or more compounding periods.QUANTITATIVE METHODS Time Value of Money Basics Nine sections: fundamentals of compliance, in put data, calcularion methodology, composite construcnon, disclosures, presentation and reporting, real estate, private equity, and wrap fed separately managed account portfolios.Compliance s a~mmt: "(Insert name of firm] has prepared and presented this report in compliance with the Global Investment Performance Standards (GIPS)." Compliance must be applied on a firm.Vll(B) Reference ro CFA Institute, the CFA Designation, and the CFA Program. VII Responsibilities as a CFA Instirute Member or CFA Candidate Vll(A) Conduct as Participants in CFA Institute Programs. VI Con!I ices oflnterest VI(A) Disclosure of Conflicrs. V(B) Communicarion with Clicnrs and Prospective Cliems. V I nvestment Analysis, Recommendations, and Actions V(A) Diligence and Reasonable Basis. IV(B) Additional Compensation ArrangemenL~. Geometrit mean: used when calculacing investment recurns over mulriple periods or to measure compound growth rates.

Means Arithmetic mt:r.1n: sum of all observation values in sample/popularion, divided by# of observations. Integrity of Capital Markets Material Nonpublic Information.Īpproximation fonnula for nominal required rate: E(R)~RFR