Derivatives, Alternative Investments, Portfolio Management, and Ethical and Professional Standards

Ace the final subjects of your CFA Level 1 exam with this essential study guide!

This book is your focused guide to mastering four key areas of the CFA curriculum. We start with Derivatives. You will learn about derivative instruments and their markets. We explore forward commitments and contingent claims. You'll understand the benefits and risks of these tools. We cover the core concepts of arbitrage and replication. The book details the pricing and valuation of forwards, futures, swaps, and options. You will also learn about option replication using put–call parity and valuing derivatives with a binomial model. Next, we dive into Alternative Investments. This section introduces their unique features and structures. You'll learn how to analyze their performance and returns. We cover investments in private equity and debt. The guide explores real estate, infrastructure, and natural resources. It also provides a clear overview of hedge funds and an introduction to the world of digital assets. The third subject is Portfolio Management. Here, we break down portfolio risk and return in two detailed parts. You will get an overview of the entire portfolio management process. We teach the basics of portfolio planning and construction. You'll also explore the behavioral biases that affect individual investors and get a solid introduction to risk management. Finally, we cover Ethical and Professional Standards. This section explains the importance of ethics and trust in finance. It provides a thorough review of the Code of Ethics and Standards of Professional Conduct. You will find detailed guidance for all seven standards, an introduction to the Global Investment Performance Standards (GIPS), and practical ethics applications to solidify your understanding.

What makes this study aid different? We know you have dense textbooks and official materials. This book isn't designed to replace them; it's designed to make them easier to understand. We cut through the academic jargon and complex language. We present the core, examinable concepts in a clear, concise, and conversational way. Think of this as your expert study partner, simplifying difficult topics so you can learn more efficiently. While other books might overwhelm you with information, our guide focuses on reinforcing your knowledge and building your confidence for exam day. We get straight to the point, helping you connect the dots between different concepts and prepare for the kind of questions you'll actually face. It's the perfect tool for your final review, helping you solidify what you've learned and pinpoint any areas that need more attention.

Disclaimer: The author and this publication are not affiliated with, endorsed by, or sponsored by the CFA Institute. CFA Institute does not endorse, promote, or warrant the accuracy or quality of the products or services offered by the author. CFA® and Chartered Financial Analyst® are trademarks owned by the CFA Institute. This study aid is an independent product created for educational purposes under the principle of nominative fair use.