SCHWESER’S SECRET SAUCE®: 2024 LEVEL I CFA®

Contents
Foreword
Quantitative Methods
	Rates and Returns
	The Time Value of Money in Finance
	Statistical Measures of Asset Returns
	Probability Trees and Conditional Expectations
	Portfolio Mathematics
	Simulation Methods
	Estimation and Inference
	Hypothesis Testing
	Parametric and Non-Parametric Tests of Independence
	Simple Linear Regression
	Introduction to Big Data Techniques
Economics
	Firms and Market Structures
	Understanding Business Cycles
	Fiscal Policy
	Monetary Policy
	Introduction to Geopolitics
	International Trade
	Capital Flows and the FX Market
	Exchange Rate Calculations
Portfolio Management (Part One)
	Portfolio Risk And Return: Part I
	Portfolio Risk And Return: Part II
Corporate Issuers
	Organizational Forms, Corporate Issuer Features, and Ownership
	Investors and Other Stakeholders
	Corporate Governance: Conflicts, Mechanisms, Risks, and Benefits
	Working Capital and Liquidity
	Capital Investments and Capital Allocation
	Capital Structure
	Business Models
Financial Statement Analysis
	Introduction to Financial Statement Analysis
	Analyzing Income Statements
	Analyzing Balance Sheets
	Analyzing Statements of Cash Flows I
	Analyzing Statements of Cash Flows II
	Analysis of Inventories
	Analysis of Long-Term Assets
	Topics in Long-Term Liabilities and Equity
	Analysis of Income Taxes
	Financial Reporting Quality
	Financial Analysis Techniques
	Introduction to Financial Statement Modeling
Equity Investments
	Market Organization and Structure
	Security Market Indexes
	Market Efficiency
	Overview of Equity Securities
	Company Analysis: Past and Present
	Industry and Competitive Analysis
	Company Analysis: Forecasting
	Equity Valuation: Concepts and Basic Tools
Fixed Income
	Fixed-Income Instrument Features
	Fixed-Income Cash Flows and Types
	Fixed-Income Issuance and Trading
	Fixed-Income Markets for Corporate Issuers
	Fixed-Income Markets for Government Issuers
	Fixed-Income Bond Valuation: Prices and Yields
	Yield and Yield Spread Measures for Fixed-Rate Bonds
	Yield and Yield Spread Measures for Floating-Rate Instruments
	The Term Structure of Interest Rates: Spot, Par, and Forward Curves
	Interest Rate Risk and Return
	Yield-Based Bond Duration Measures and Properties
	Yield-Based Bond Convexity and Portfolio Properties
	Curve-Based and Empirical Fixed-Income Risk Measures
	Credit Risk
	Credit Analysis for Government Issuers
	Credit Analysis for Corporate Issuers
	Fixed-Income Securitization
	ABS Instrument and Market Features
	Mortgage-Backed Security Instrument and Market Features
Derivatives
	Derivative Instrument and Derivative Market Features
	Forward Commitment and Contingent Claim Features and Instruments
	Derivative Benefits, Risks, and Issuer and Investor Uses
	Arbitrage, Replication, and the Cost of Carry in Pricing Derivatives
	Pricing and Valuation of Forward Contracts and for an Underlying With Varying Maturities
	Pricing and Valuation of Futures Contracts
	Pricing and Valuation of Interest Rates and Other Swaps
	Pricing and Valuation of Options
	Option Replication Using Put-Call Parity
	Valuing a Derivative Using a One-Period Binomial Model
Alternative Investments
	Alternative Investment Features, Methods, and Structures
	Alternative Investment Performance and Returns
	Investments in Private Capital: Equity and Debt
	Real Estate and Infrastructure
	Natural Resources
	Hedge Funds
	Introduction to Digital Assets
Portfolio Management (Part Two)
	Portfolio Management: An Overview
	Basics Of Portfolio Planning And Construction
	The Behavioral Biases of Individuals
	Introduction to Risk Management
Ethical and Professional Standards
	Ethics and Trust in the Investment Profession
	Code of Ethics and Standards of Professional Conduct
	Guidance for Standards I–VII
	Introduction to the Global Investment Performance Standards (Gips®)
	Ethics Application
Essential Exam Strategies
Index