CFA 2019 Schweser - Level 1 SchweserNotes Book 4: CORPORATE FINANCE, PORTFOLIO MANAGEMENT, AND EQUITY INVESTMENTS 4

SCHWESERNOTESTM 2019 LEVEL I CFA® BOOK 4: CORPORATE FINANCE, PORTFOLIO MANAGEMENT, AND EQUITY INVESTMENTS The study tool that started it all is taking CFA® exam prep to the next level. A favorite among CFA candidates for nearly 30 years, SchweserNotesTM is a key component as you prepare for the CFA exam and the core element to our Study Program. Absorbing the CFA curriculum in its entirety is no simple task. Make the most of your study time with clear, exam-focused study notes and examples that cover every Learning Outcome Statement in the most effective manner possible. More than just textbooks. SchweserNotesTM were first introduced in 1990 and quickly took off as a “must have” for CFA candidates. And although they are still available as physical books, as technology and candidate needs have evolved, so have SchweserNotesTM: SchweserNotesTM eBooks are now included with each order of the Notes, making it easier for you to study on-the-go. Contents......Page 2 List of pages......Page 5 Learning Outcome Statements (LOS)......Page 13 Module 33.1: Stakeholder Management......Page 24 Module 33.2: Factors Affecting Corporate Governance......Page 31 Key Concepts......Page 38 Answer Key for Module Quizzes......Page 40 Module 34.1: Capital Projects, NPV, and IRR......Page 42 Module 34.2: Payback Period, Project Rankings......Page 49 Key Concepts......Page 57 Answer Key for Module Quizzes......Page 59 Module 35.1: Weighted Average Cost of Capital......Page 61 Module 35.2: Project Cost of Capital......Page 69 Key Concepts......Page 77 Answer Key for Module Quizzes......Page 80 Module 36.1: Measures of Leverage......Page 82 Key Concepts......Page 91 Answer Key for Module Quiz......Page 93 Module 37.1: Working Capital Management......Page 95 Key Concepts......Page 107 Answer Key for Module Quiz......Page 109 Topic Assessment: Corporate Finance......Page 110 Topic Assessment Answers: Corporate Finance......Page 113 Module 38.1: Portfolio Management Process......Page 115 Module 38.2: Pooled Investments......Page 119 Key Concepts......Page 123 Answer Key for Module Quizzes......Page 125 Module 39.1: Returns Measures......Page 127 Module 39.2: Covariance and Correlation......Page 131 Module 39.3: The Efficient Frontier......Page 134 Key Concepts......Page 143 Answer Key for Module Quizzes......Page 146 Module 40.1: Systematic Risk and Beta......Page 148 Module 40.2: The CAPM and the SML......Page 157 Key Concepts......Page 168 Answer Key for Module Quizzes......Page 170 Module 41.1: Portfolio Planning and Construction......Page 172 Key Concepts......Page 180 Answer Key for Module Quiz......Page 182 Module 42.1: Risk Management Introduction......Page 183 Key Concepts......Page 191 Answer Key for Module Quiz......Page 193 Module 43.1: Fintech in Investment Management......Page 194 Key Concepts......Page 200 Answer Key for Module Quiz......Page 201 Topic Assessment: Portfolio Management......Page 202 Topic Assessment Answers: Portfolio Management......Page 204 Module 44.1: Markets, Assets, and Intermediaries......Page 205 Module 44.2: Positions and Leverage......Page 213 Module 44.3: Order Execution and Validity......Page 217 Key Concepts......Page 226 Answer Key for Module Quizzes......Page 230 Module 45.1: Index Weighting Methods......Page 232 Module 45.2: Uses and Types of Indexes......Page 239 Key Concepts......Page 246 Answer Key for Module Quizzes......Page 249 Module 46.1: Efficient Markets......Page 251 Key Concepts......Page 260 Answer Key for Module Quiz......Page 262 Module 47.1: Types of Equity Investments......Page 263 Module 47.2: Foreign Equities and Equity Risk......Page 266 Key Concepts......Page 272 Answer Key for Module Quizzes......Page 274 Module 48.1: Industry Analysis......Page 275 Module 48.2: Pricing Power and Company Analysis......Page 282 Key Concepts......Page 291 Answer Key for Module Quizzes......Page 295 Module 49.1: Dividends, Splits, and Repurchases......Page 297 Module 49.2: Dividend Discount Models......Page 301 Module 49.3: Relative Valuation Measures......Page 309 Key Concepts......Page 319 Answer Key for Module Quizzes......Page 324 Topic Assessment: Equity Investments......Page 326 Topic Assessment Answers: Equity Investments......Page 329 Formulas......Page 331