SCHWESERNOTES 2023 LEVEL I CFA BOOK 5 PORTFOLIO MANAGEMENT AND ETHICAL AND PROFESSIONAL STANDARDS

Book 5: Portfolio Management and Ethical and Professional Standards
Learning Outcome Statements (LOS)
Reading 61 Portfolio Management: An Overview
	Exam Focus
	Module 61.1: Portfolio Management Process
	Module 61.2: Asset Management and Pooled Investments
		Types of Mutual Funds
		Other Forms of Pooled Investments
	Key Concepts
		LOS 61.a
		LOS 61.b
		LOS 61.c
		LOS 61.d
		LOS 61.e
		LOS 61.f
	Answer Key for Module Quizzes
Reading 62 Portfolio Risk and Return: Part I
	Exam Focus
	Module 62.1: RETURNS MEASURES
		Average Returns
		Other Return Measures
	Module 62.2: RISK AVERSION
	Module 62.3: portfolio standard deviation
		Variance (Standard Deviation) of Returns for an Individual Security
		Covariance and Correlation of Returns for Two Securities
	Module 62.4: the efficient frontier
	Key Concepts
		LOS 62.a
		LOS 62.b
		LOS 62.c
		LOS 62.d
		LOS 62.e
		LOS 62.f
		LOS 62.g
		LOS 62.h
		LOS 62.i
	ANSWER KEY FOR MODULE QUIZZES
Reading 63 Portfolio Risk and Return: Part II
	Exam Focus
	Module 63.1: Systematic Risk and Beta
		Systematic Risk Is Relevant in Portfolios
	Module 63.2: The CAPM and the SML
		Comparing the CML and the SML
	Key Concepts
		LOS 63.a
		LOS 63.b
		LOS 63.c
		LOS 63.d
		LOS 63.e
		LOS 63.f
		LOS 63.g
		LOS 63.h
		LOS 63.i
	Answer Key for Module Quizzes
Reading 64 Basics of Portfolio Planning and Construction
	Exam Focus
	Module 64.1: Portfolio Planning and Construction
	Key Concepts
		LOS 64.a
		LOS 64.b
		LOS 64.c
		LOS 64.d
		LOS 64.e
		LOS 64.f
		LOS 64.g
		LOS 64.h
	Answer Key for Module Quizzes
Reading 65 The Behavioral Biases of Individuals
	Exam Focus
	Module 65.1: Cognitive Errors vs. Emotional Biases
		Cognitive Errors: Belief Perseverance
		Cognitive Errors: Information-Processing Biases
	Module 65.2: Emotional Biases
	Key Concepts
		LOS 65.a
		LOS 65.b
		LOS 65.c
	Answer Key for Module Quizzes
Reading 66 Introduction to Risk Management
	Exam Focus
	Module 66.1: Introduction to Risk Management
		Subjective and Market-Based Estimates of Risk
		Modifying Risk Exposures
		Choosing Among Risk Modification Methods
	Key Concepts
		LOS 66.a
		LOS 66.b
		LOS 66.c
		LOS 66.d
		LOS 66.e
		LOS 66.f
		LOS 66.g
	Answer Key for Module Quizzes
Reading 67 Technical Analysis
	Exam Focus
	Module 67.1: Technical Analysis
		Price-Based Indicators
			Momentum Oscillators
		Non-Price-Based Indicators
	Key Concepts
		LOS 67.a
		LOS 67.b
		LOS 67.c
		LOS 67.d
		LOS 67.e
		LOS 67.f
		LOS 67.g
		LOS 67.h
		LOS 67.i
	Answer Key for Module Quizzes
Reading 68 Fintech in Investment Management
	Exam Focus
	Module 68.1: Fintech in Investment Management
		Financial Applications of Distributed Ledger Technology
	Key Concepts
		LOS 68.a
		LOS 68.b
		LOS 68.c
		LOS 68.d
	Answer Key for Module Quizzes
	Topic Quiz: Portfolio Management
Reading 69 Ethics and Trust in the Investment Profession
	Exam Focus
	Module 69.1: Ethics and Trust
	Key Concepts
		LOS 69.a
		LOS 69.b
		LOS 69.c
		LOS 69.d
		LOS 69.e
		LOS 69.f
		LOS 69.g
		LOS 69.h
	Answer Key for Module QUIZZES
Reading 70 Code of Ethics and Standards of Professional Conduct
	Exam Focus
	Module 70.1: Code and Standards
		Code of Ethics
		The Standards of Professional Conduct
		Standards of Professional Conduct2
	Answer Key for Module QUIZZES
Reading 71 Guidance for Standards I–VII
	Exam Focus
	Module 71.1: Guidance for Standards I(A) and I(B)
	Standard I: Professionalism1
		Standard I(A) Knowledge of the Law
		Recommendations for Members
		Recommendations for Firms
		Standard I(B) Independence and Objectivity
		Recommendations for Members
		Recommendations for Firms
	Module 71.2: Guidance for Standards I(C) and I(D)
		Standard I(C) Misrepresentation
		Recommendations for Members
		Standard I(D) Misconduct
		Recommendations for Firms
	Module 71.3: Guidance for Standard II
	Standard II: Integrity of Capital Markets
		Standard II(A) Material Nonpublic Information
		Recommendations for Members
		Recommendations for Firms
		Standard II(B) Market Manipulation
	Module 71.4: Guidance for Standards III(A) and III(B)
	Standard III: Duties to Clients
		Standard III(A) Loyalty, Prudence, and Care
		Recommendations for Members
		Standard III(B) Fair Dealing
		Recommendations for Members
		Recommendations for Firms
	Module 71.5: Guidance for Standards III(C), III(D), and III(E)
		Standard III(C) Suitability
		Unsolicited Trade Requests
		Recommendations for Members
		Standard III(D) Performance Presentation
		Recommendations for Members
		Standard III(E) Preservation of Confidentiality
		Recommendations for Members
	Module 71.6: Guidance for Standard IV
	Standard IV: Duties to Employers
		Standard IV(A) Loyalty
		Recommendations for Members
		Recommendations for Firms
		Standard IV(B) Additional Compensation Arrangements
		Recommendations for Members
		Recommendations for Firms
		Standard IV(C) Responsibilities of Supervisors
		Recommendations for Members
		Recommendations for Firms
	Module 71.7: Guidance for Standard V
	Standard V: Investment Analysis, Recommendations, and Actions
		Standard V(A) Diligence and Reasonable Basis
		Recommendations for Members
		Standard V(B) Communication With Clients and Prospective Clients
		Recommendations for Members
		Standard V(C) Record Retention
		Recommendations for Members
		Recommendations for Firms
	Module 71.8: Guidance for Standard VI
	Standard VI: Conflicts of Interest
		Standard VI(A) Disclosure of Conflicts
		Recommendations for Members
		Standard VI(B) Priority of Transactions
		Recommendations for Members
		Recommendations for Firms
		Standard VI(C) Referral Fees
		Recommendations for Members
		Recommendations for Firms
	Module 71.9: Guidance for Standard VII
	Standard VII: Responsibilities as a CFA Institute Member or CFA Candidate
		Standard VII(A) Conduct as Participants in CFA Institute Programs
		Standard VII(B) Reference to CFA Institute, the CFA Designation, and the CFA Program
		Recommendations for Members
	Answer Key for Module QUIZZES
Reading 72 Introduction to the Global Investment Performance Standards (GIPS)
	Exam Focus
	Module 72.1: Introduction to GIPS
	Key Concepts
		LOS 72.a
		LOS 72.b
		LOS 72.c
		LOS 72.d
		LOS 72.e
	Answer Key for Module QUIZZES
Reading 73 Ethics Application
	Exam Focus
	Module 73.1: Ethics Application
		Standard I: Professionalism
			Standard I(A) Knowledge of the Law
			Standard I(B) Independence and Objectivity
			Standard I(C) Misrepresentation
			Standard I(D) Misconduct
		Standard II: Integrity of Capital Markets
			Standard II(A) Material Nonpublic Information
			Standard II(B) Market Manipulation
		Standard III: Duties to Clients
			Standard III(A) Loyalty, Prudence, and Care
			Standard III(B) Fair Dealing
			Standard III(C) Suitability
			Standard III(D) Performance Presentation
			Standard III(E) Preservation of Confidentiality
		Standard IV: Duties to Employers
			Standard IV(A) Loyalty
			Standard IV(B) Additional Compensation Arrangements
			Standard IV(C) Responsibilities of Supervisors
		Standard V: Investment Analysis, Recommendations, and Actions
			Standard V(A) Diligence and Reasonable Basis
			Standard V(B) Communication With Clients and Prospective Clients
			Standard V(C) Record Retention
		Standard VI: Conflicts of Interest
			Standard VI(A) Disclosure of Conflicts
			Standard VI(B) Priority of Transactions
			Standard VI(C) Referral Fees
		Standard VII: Responsibilities as a CFA Institute Member or CFA Candidate
			Standard VII(A) Conduct as Participants in CFA Institute Programs
			Standard VII(B) Reference to CFA Institute, the CFA Designation, and the CFA Program
	Answer Key for Module Quizzes
	Topic Quiz: Ethical and Professional Standards
FORMULAS
Index