CFA Level II study guide
Every chapter of all four papers, broken into 294 topics. Each topic shows the concept, a step-by-step way to solve questions, the quickest method for the exam, the mistakes students make and worked examples.
Paper 1: CFA Level II Exam
Objective, MCQ · 51 chaptersIntercorporate Investments
- Classification of Intercorporate Investments
- Investments in Financial Assets (IFRS 9 and US GAAP)
- Equity Method of Accounting for Associates
- Joint Ventures and Proportionate Consolidation
- Business Combinations and the Acquisition Method
- Consolidated Financial Statements and Non-Controlling Interest
- Goodwill Impairment and Analytical Implications
Market-Based Valuation: Price and Enterprise Value Multiples
- Price and Enterprise Value Multiples Overview
- Price to Earnings (P/E) Ratio
- Price to Book Value (P/B) Ratio
- Price to Sales and Price to Cash Flow Multiples
- Enterprise Value and EV/EBITDA Multiple
- Dividend Yield and Dividend-Based Valuation Multiples
- Comparables Approach and Valuation Using Benchmarks
- Cross-Sectional Regression and Momentum Indicators
The Term Structure and Interest Rate Dynamics
- Spot Rates and Forward Rates
- Yield to Maturity and Par, Spot and Forward Curves
- Return of Forward Contracts and Riding the Yield Curve
- Swap Rate Curve and Spreads
- Traditional Theories of the Term Structure
- Modern Term Structure Models
- Yield Curve Factor Models and Duration
- Arbitrage-Free Valuation and Binomial Interest Rate Tree
Valuation and Analysis of Bonds with Embedded Options
- Embedded Options in Bonds: Types and Features
- Interest Rate Tree and Binomial Model
- Valuing Callable and Putable Bonds
- Option-Adjusted Spread (OAS)
- Effective Duration and Convexity
- Key Rate Duration and Price-Yield Behavior
- Valuing Capped and Floored Floating-Rate Bonds
- Convertible Bonds: Valuation and Analysis
Valuation of Contingent Claims
- Binomial Option Pricing Model
- Binomial Models for Interest Rate Options
- Black-Scholes-Merton Model
- Black Model for Futures and Interest Rate Options
- Option Greeks and Delta Hedging
- Implied Volatility and Volatility Smile
- Put-Call Parity and No-Arbitrage Relationships
- Valuing Swaptions and Interest Rate Derivative Options