- CFA L-1
- CFA L-2
- CFA L-3
- FRM P-1
- FRM P-2

- 2021-22
- 2022-23

2. Organizing, Visualizing, And Describing Data (2022)

**a:** Identify and compare data types.

**b:** Describe how data are organized for quantitative analysis.

**c:** Interpret frequency and related distributions.

**d:** Interpret a contingency table.

**e:** Describe ways that data may be visualized and evaluate uses of specific visualizations.

**f:** Describe how to select among visualization types.

**g:** Calculate and interpret measures of central tendency.

**h:** Evaluate alternative definitions of mean to address an investment problem.

**i:** Calculate quantiles and interpret related visualizations.

**j:** Calculate and interpret measures of dispersion.

**k:** Calculate and interpret target downside deviation.

**l:** Interpret skewness.

**m:** Interpret kurtosis.

**n:** Interpret correlation between two variables.

7. Introduction To Linear Regression (2022)

**a:** Describe a simple linear regression model and the roles of the dependent and independent variables in the model.

**b:** Describe the least squares criterion, how it is used to estimate regression coefficients, and their interpretation.

**c:** Explain the assumptions underlying the simple linear regression model, and describe how residuals and residual plots indicate if these assumptions may have been violated.

**d:** Calculate and interpret the coefficient of determination and the F statistic in a simple linear regression.

**e: **describe the use of analysis of variance (ANOVA) in regression analysis, interpret ANOVA results, and calculate and interpret the standard error of estimate in a simple linear regression.

**f:** Formulate a null and an alternative hypothesis about a population value of a regression coefficient, and determine whether the null hypothesis is rejected at a given level of significance.

**g:** Calculate and interpret the predicted value for the dependent variable, and a prediction interval for it, given an estimated linear regression model and a value for the independent variable.

**h:** Describe different functional forms of simple linear regressions.

28. Uses Of Capital (2022)

**a:** Describe the capital allocation process and basic principles of capital allocation.

**b:** Demonstrate the use of net present value (NPV) and internal rate of return (IRR) in allocating capital and describe the advantages and disadvantages of each method.

**c:** Describe expected relations among a company’s investments, company value, and share price.

**d:** Describe types of real options relevant to capital investment.

**e: **Describe common capital allocation pitfalls.

29. Sources Of Capital (2022)

**a:** Describe types of financing methods and considerations in their selection.

**b:** Describe primary and secondary sources of liquidity and factors that influence a company’s liquidity position.

**c:** Compare a company’s liquidity position with that of peer companies.

**d:** Evaluate choices of short term funding.

31. Capital Structure (2022)

**a:** Describe how a company’s capital structure may change over time.

**b:** Explain the Modigliani–Miller propositions regarding capital structure.

**c:** Describe the use of target capital structure in estimating WACC, and calculate and interpret target capital structure weights.

**d:** Explain factors affecting capital structure decisions.

**e:** Describe competing stakeholder interests in capital structure decisions.

52. The Behavioral Biases Of Individuals (2022)

**a:** Compare and contrast cognitive errors and emotional biases.

**b:** Discuss commonly recognized behavioral biases and their implications for financial decision making.

**c:** Describe how behavioral biases of investors can lead to market characteristics that may not be explained by traditional finance.

60. Ethics Application (2022)

**a:** Evaluate practices, policies, and conduct relative to the CFA Institute Code of Ethics and Standards of Professional Conduct.

**b:** Explain how the practices, policies, and conduct do or do not violate the CFA Institute Code of Ethics and Standards of Professional Conduct.

3. Probability Concepts (2022)

**Los a (2021) is Los a (2022):** Define a random variable, an outcome, and an event.

**Los b (2021) is Los b (2022):** Identify the two defining properties of probability, including mutually exclusive and exhaustive events, and compare and contrast empirical, subjective, and a priori probabilities.

**Los c (2021) is Los c (2022):** Describe the probability of an event in terms of odds for and against the event.

**Los d (2021) is Los d (2022):** Calculate and interpret conditional probabilities.

**Los e (2021) is Los e (2022):** Demonstrate the application of the multiplication and addition rules for probability.

**Los g (2021) is Los f (2022):** Compare and contrast dependent and independent events.

**Los h (2021) is Los g (2022):** Calculate and interpret an unconditional probability using the total probability rule.

**Los l (2021) is Los h (2022):** Calculate and interpret the expected value, variance, and standard deviation of random variables.

**Los i (2021) is Los i (2022):** Explain the use of conditional expectation in investment applications.

**Los j (2021) is Los j (2022):** Interpret a probability tree and demonstrate its application to investment problems.

**Los l (2021) is Los k (2022):** Calculate and interpret the expected value, variance, standard deviation, covariances, and correlations of portfolio returns.

**Los m (2021) is Los l (2022):** Calculate and interpret the covariances of portfolio returns using the joint probability function.

**Los n (2021) is Los m (2022):** Calculate and interpret an updated probability using Bayes’ formula.

**Los o (2021) is Los n (2022):** Identify the most appropriate method to solve a particular counting problem and analyze counting problems using factorial, combination, and permutation concepts.

4. Common Probability Distributions (2022)

**Los a (2021) is Los a (2022):** Define a probability distribution and compare and contrast discrete and continuous random variables and their probability functions.

**Los d (2021) is Los b(2022):** Calculate and interpret probabilities for a random variable given its cumulative distribution function.

**Los a, e (2021) is Los c (2022):** Describe the properties of a discrete uniform random variable, and calculate and interpret probabilities given the discrete uniform distribution function.

**Los h (2021) is Los d (2022):** Describe the properties of the continuous uniform distribution, and calculate and interpret probabilities given a continuous uniform distribution.

**Los e, f (2021) is Los e (2022):** describe the properties of a Bernoulli random variable and a binomial random variable, and calculate and interpret probabilities given the binomial distribution function.

**Los i (2021) is Los f (2022):** Explain the key properties of the normal distribution.

**Los j (2021) is Los g (2022):** Contrast a multivariate distribution and a univariate distribution, and explain the role of correlation in the multivariate normal distribution.

**Los k (2021) is Los h (2022):** Calculate the probability that a normally distributed random variable lies inside a given interval.

**Los l (2021) is Los i (2022):** Explain how to standardize a random variable.

**Los l (2021) is Los j (2022):** Calculate and interpret probabilities using the standard normal distribution.

**Los m (2021) is Los k (2022):** Define shortfall risk, calculate the safety first ratio, and identify an optimal portfolio using Roy’s safety first criterion.

**Los n (2021) is Los l (2022):** Explain the relationship between normal and lognormal distributions and why the lognormal distribution is used to model asset prices.

**Los o (2021) is Los m (2022):** Calculate and interpret a continuously compounded rate of return, given a specific holding period return.

**Los i (2021) is Los n (2022):** Describe the properties of the Student’s t distribution, and calculate and interpret its degrees of freedom.

**Los j (2021) is Los o (2022):** Describe the properties of the chi-square distribution and the F-distribution, and calculate and interpret their degrees of freedom.

**Los p (2021) is Los p (2022):** Describe Monte Carlo Simulation.

5. Sampling and Estimation (2022)

**Los a:** (Compare and contrast probability samples with non probability samples and discuss applications of each to an investment problem) is added.

**Los b (2021) is Los b (2022):** Explain sampling error.

**Los c (2021) is Los c (2022):** Compare and contrast simple random, stratified random, cluster, convenience, and judgmental sampling.

**Los e (2021) is Los d (2022):** Explain the central limit theorem and its importance.

**Los f (2021) is Los e (2022):** Calculate and interpret the standard error of the sample mean.

**Los g (2021) is Los f (2022):** Identify and describe desirable properties of an estimator.

**Los h (2021) is Los g (2022):** Contrast a point estimate and a confidence interval estimate of a population parameter.

**Los j (2021) is Los h (2022):** Calculate and interpret a confidence interval for a population mean, given a normal distribution with 1) a known population variance, 2) an unknown population variance, or 3) an unknown population variance and a large sample size.

**Los i:** (Describe the use of resampling (bootstrap, jackknife) to estimate the sampling distribution of a statistic) is added.

**Los k (2021) is Los j (2022):** Describe the issues regarding selection of the appropriate sample size, data snooping bias, sample selection bias, survivorship bias, look ahead bias, and time period bias.

6. Hypothesis Testing (2022)

**Los a (2021) is Los a (2022):** Define a hypothesis, describe the steps of hypothesis testing, and describe and interpret the choice of the null and alternative hypotheses.

**Los b (2021) is Los b (2022):** Compare and contrast one tailed and two tailed tests of hypotheses.

**Los c, d (2021) is Los c (2022):** Explain a test statistic, Type I and Type II errors, a significance level, how significance levels are used in hypothesis testing, and the power of a test.

**Los d, e (2021) is Los d (2022):** Explain a decision rule and the relation between confidence intervals and hypothesis tests, and determine whether a statistically significant result is also economically meaningful.

**Los f (2021) is Los e (2022):** Explain and interpret the p value as it relates to hypothesis testing.

**Los f (2021) is Los f (2022):** Describe how to interpret the significance of a test in the context of multiple tests.

**Los g (2021) is Los g (2022):** identify the appropriate test statistic and interpret the results for a hypothesis test concerning the population mean of both large and small samples when the population is normally or approximately normally distributed and the variance is (1) known or (2) unknown.

**Los h (2021) is Los h (2022):** Identify the appropriate test statistic and interpret the results for a hypothesis test concerning the equality of the population means of two at least approximately normally distributed populations based on independent random samples with equal assumed variances.

**Los i (2021) is Los i (2022):** Identify the appropriate test statistic and interpret the results for a hypothesis test concerning the mean difference of two normally distributed populations.

**Los j (2021) is Los j (2022):** identify the appropriate test statistic and interpret the results for a hypothesis test concerning (1) the variance of a normally distributed population and (2) the equality of the variances of two normally distributed populations based on two independent random samples.

**Los l (2021) is Los k (2022):** Compare and contrast parametric and nonparametric tests, and describe situations where each is the more appropriate type of test.

**Los k (2021) is Los l (2022):** Explain parametric and nonparametric tests of the hypothesis that the population correlation coefficient equals zero, and determine whether the hypothesis is rejected at a given level of significance.

**Los m:** (Explain tests of independence based on contingency table data) is added.

11. Understanding Business Cycles (2022)

**Los a (2021) is Los a (2022):** Describe the business cycle and its phases.

**Los b:** (Describe credit cycles) is added.

**Los b (2021) is Los c (2022):** Describe how resource use, consumer and business activity, housing sector activity, and external trade sector activity vary as an economy moves through the business cycle.

**Los c (2021) is Los d (2022):** Describe theories of the business cycle.

**Los i (2021) is Los e (2022):** Interpret a set of economic indicators, and describe their uses and limitations.

**Los d (2021) is Los f (2022):** Describe types of unemployment, and compare measures of unemployment.

**Los e (2021) is Los g (2022):** Explain inflation, hyperinflation, disinflation, and deflation.

**Los f (2021) is Los h (2022):** Explain the construction of indexes used to measure inflation.

**Los g (2021) is Los i (2022):** Compare inflation measures, including their uses and limitations.

**Los h (2021) is Los j (2022):** Contrast cost push and demand pull inflation.

30. Cost Of Capital-Foundational Topics (2022)

**Los a (2021) is Los a (2022):** Calculate and interpret the weighted average cost of capital (WACC) of a company.

**Los b (2021) is Los b (2022):** Describe how taxes affect the cost of capital from different capital sources.

**Los f (2021) is Los c (2022):** Calculate and interpret the cost of debt capital using the yield to maturity approach and the debt rating approach.

**Los g (2021) is Los d (2022):** Calculate and interpret the cost of noncallable, nonconvertible preferred stock.

**Los h (2021) is Los e (2022):** Calculate and interpret the cost of equity capital using the capital asset pricing model approach and the bond yield plus risk premium approach.

**Los i (2021) is los f (2022):** Explain and demonstrate beta estimation for public companies, thinly traded public companies, and nonpublic companies.

**Los l (2021) is Los g (2022):** Explain and demonstrate the correct treatment of flotation costs.

37. Introduction to Industry and Company Analysis (2022)

**Los a (2021) is Los a (2022):** Explain uses of industry analysis and the relation of industry analysis to company analysis.

**Los b (2021) is Los b (2022):** Compare methods by which companies can be grouped.

**Los c (2021) is Los c (2022):** Explain the factors that affect the sensitivity of a company to the business cycle and the uses and limitations of industry and company descriptors such as “growth,” “defensive,” and “cyclical”.

**Los b (2022) is Los d (2022):** Describe current industry classification systems, and identify how a company should be classified, given a description of its activities and the classification system.

**Los d (2021) is Los e (2022):** Explain how a company’s industry classification can be used to identify a potential “peer group” for equity valuation.

**Los e (2021) is Los f (2022):** Describe the elements that need to be covered in a thorough industry analysis.

**Los f (2021) is Los g (2022):** Describe the principles of strategic analysis of an industry.

**Los g (2021) is Los h (2022):** Explain the effects of barriers to entry, industry concentration, industry capacity, and market share stability on pricing power and price competition.

**Los i (2021) is Los i (2022):** Describe industry life cycle models, classify an industry as to life cycle stage, and describe limitations of the life cycle concept in forecasting industry performance.

**Los j (2021) is Los j (2022):** Describe macroeconomic, technological, demographic, governmental, social, and environmental influences on industry growth, profitability, and risk.

**Los i (2021) is Los k (2022):** Compare characteristics of representative industries from the various economic sectors.

**Los k (2021) is Los l (2022):** Describe the elements that should be covered in a thorough company analysis.

42. Introduction to Asset-Backed Securities (2022)

**Los a (2021) is Los a (2022):** Explain benefits of securitization for economies and financial markets.

**Los b (2021) is Los b (2022):** Describe securitization, including the parties involved in the process and the roles they play.

**Los c (2021) is Los c (2022):** Describe typical structures of securitizations, including credit tranching and time tranching.

**Los d (2021) is Los d (2022):** Describe types and characteristics of residential mortgage loans that are typically securitized.

**Los e (2021) is Los e (2022):** Describe types and characteristics of residential mortgage backed securities, including mortgage pass through securities and collateralized mortgage obligations, and explain the cash flows and risks for each type.

**Los f (2021) is Los f (2022):** Define prepayment risk and describe the prepayment risk of mortgage backed securities.

**Los g (2021) is Los g (2022):** Describe characteristics and risks of commercial mortgage backed securities.

**Los h (2021) is Los h (2022):** Describe types & characteristics of non mortgage asset backed securities, including the cash flows and risks of each type.

**Los i (2021) is Los i (2022):** Describe collateralized debt obligations, including their cash flows and risks.

**Los j:** (Describe characteristics and risks of covered bonds and how they differ from other asset backed securities) is added.

43. Understanding Fixed-Income Risk and Return (2022)

**Los a (2021) is Los a (2022):** Calculate and interpret the sources of return from investing in a fixed rate bond.

**Los b (2021) is Los b (2022):** Define, calculate, and interpret Macaulay, modified, and effective durations.

**Los c (2021) is Los c (2022):** Explain why effective duration is the most appropriate measure of interest rate risk for bonds with embedded options.

**Los d (2021) is Los d (2022):** Define key rate duration and describe the use of key rate durations in measuring the sensitivity of bonds to changes in the shape of the benchmark yield curve.

**Los e (2021) is Los e (2022):** Explain how a bond’s maturity, coupon, and yield level affect its interest rate risk.

**Los f (2021) is Los f (2022):** Calculate the duration of a portfolio and explain the limitations of portfolio duration.

**Los g (2021) is Los g (2022):** Calculate and interpret the money duration of a bond and price value of a basis point (PVBP).

**Los h (2021) is Los h (2022):** Calculate and interpret approximate convexity and compare approximate and effective convexity.

**Los i (2021) is Los i (2022):** Calculate the percentage price change of a bond for a specified change in yield, given the bond’s approximate duration and convexity.

**Los j (2021) is Los j (2022):** Describe how the term structure of yield volatility affects the interest rate risk of a bond.

**Los k (2021) is Los k (2022):** Describe the relationships among a bond’s holding period return, its duration, and the investment horizon.

**Los l (2021) is Los l (2022):** explain how changes in credit spread and liquidity affect yield to maturity of a bond and how duration and convexity can be used to estimate the price effect of the changes.

**Los m:** (Describe the difference between empirical duration and analytical duration) is added.

44. Fundamentals of Credit Analysis (2022)

**Los a (2021) is Los a (2022):** Describe credit risk and credit related risks affecting corporate bonds.

**Los b (2021) is Los b (2022):** Describe default probability and loss severity as components of credit risk.

**Los c (2021) is Los c (2022):** Describe seniority rankings of corporate debt and explain the potential violation of the priority of claims in a bankruptcy proceeding.

**Los d (2021) is Los d (2022):** Compare and contrast corporate issuer credit ratings and issue credit ratings and describe the rating agency practice of “notching”.

**Los e (2021) is Los e (2022):** Explain risks in relying on ratings from credit rating agencies.

**Los f (2021) is Los f (2022):** Explain the four Cs (Capacity, Collateral, Covenants, and Character) of traditional credit analysis.

**Los g (2021) is Los g (2022):** Calculate and interpret financial ratios used in credit analysis.

**Los h (2021) is Los h (2022):** Evaluate the credit quality of a corporate bond issuer and a bond of that issuer, given key financial ratios of the issuer and the industry.

**Los i (2021) is Los i (2022):** Describe macroeconomic, market, and issuer specific factors that influence the level and volatility of yield spreads.

**Los j (2021) is Los j (2022):** Explain special considerations when evaluating the credit of high yield, sovereign, and non sovereign government debt issuers and issues.

47. Introduction to Alternative Investments (2022)

**Los b (2021) is Los a (2022):** Describe types and categories of alternative investments.

**Los b:** (Describe characteristics of direct investment, co investment, and fund investment methods for alternative investments) is added.

**Los c:** (Describe investment and compensation structures commonly used in alternative investments) is added.

**Los d:** (Explain investment characteristics of hedge funds) is added.

**Los e:** (Explain investment characteristics of private capital) is added.

**Los f:** (Explain investment characteristics of natural resources) is added.

**Los g:** (Explain investment characteristics of real estate) is added.

**Los h:** (Explain investment characteristics of infrastructure) is added.

**Los i:** (Describe issues in performance appraisal of alternative investments) is added.

**Los j:** (Calculate and interpret returns of alternative investments on both before-fee and after-fee bases) is added.

54. Technical Analysis (2022)

**Los a (2021) is Los a (2022):** Explain principles and assumptions of technical analysis.

**Los a (2021) is Los b (2022):** Describe potential links between technical analysis and behavioral finance.

**Los a (2021) is Los c (2022):** Compare principles of technical analysis and fundamental analysis.

**Los b (2021) is Los d (2022):** Describe and interpret different types of technical analysis charts.

**Los c (2021) is Los e (2022):** Explain uses of trend, support, and resistance lines.

**Los d (2021) is Los f (2022):** Explain common chart patterns.

**Los e (2021) is Los g (2022):** Explain common technical indicators.

**Los h (2021) is Los h (2022):** Describe principles of intermarket analysis.

**Los i:** (Explain technical analysis applications to portfolio management) is added.

59. Introduction to the Global Investment Performance Standards (GIPS) (2022)

**Los a (2021) is Los a (2022):** Explain why the GIPS standards were created, what parties the GIPS standards apply to, and who is benefitted by the standards.

**Los a (2021) is Los b (2022):** Describe the key concepts of the GIPS standards for firms.

**Los b (2021) is Los c (2022):** Explain the purpose of composites in performance reporting.

**Los a, b (2021) is Los d (2022):** Describe the fundamentals of compliance, including the recommendations of the GIPS Standards with respect to the definition of the firm and the firm’s definition of discretion.

**Los c (2021) is Los e (2022):** Describe the concept of independent verification.

5. The GIPS Standards (2021)

Chapter has been deleted.

7. Statistical Concepts and Market Returns (2021)

Chapter has been deleted.

32. Capital Budgeting (2021)

Chapter has been deleted.

33. Cost of Capital (2021)

Chapter has been deleted.

35. Working Capital Management (2021)

Chapter has been deleted.

13. Introduction to Geopolitics (2023)

**a:** Describe geopolitics from a cooperation versus competition perspective.

**b:** Describe geopolitics and its relationship with globalization.

**c:** Describe tools of geopolitics and their impact on regions and economies.

**d:** Describe geopolitical risk and its impact on investments.

28. Corporate Structures and Ownership (2023)

**a:** Compare business structures and describe key features of corporate issuers.

**b:** Compare public and private companies.

**c:** Compare the financial claims and motivations of lenders and owners.

30. Business Models & Risks (2023)

**a:** Describe key features and types of business models.

**b:** Describe expected relations between a company’s external environment, business model, and financing needs.

**c:** Explain and classify types of business and financial risks for a company.

1. The Time Value of Money (2023)

**Los c (2022) is Los f (2023): **Calculate and interpret the effective annual rate, given the stated annual interest rate and the frequency of compounding.

**Los d (2022) is Los e (2023): **Calculate the solution for time value of money problems with different frequencies of compounding. (Content is los c of 2022 after solving tvm)

**Los e (2022) is Los c (2023):** Calculate and interpret the future value (FV) and present value (PV) of a single sum of money, an ordinary annuity, an annuity due, a perpetuity (PV only), and a series of unequal cash flows.(delete from "Solving Time Value of Money Problems When Compounding Periods Are Other Than Annual" of 2022.)

**Los f (2022) is Los d (2023): **Demonstrate the use of a time line in modeling and solving time value of money problems.

2. Organizing, Visualizing, And Describing Data (2023)

**Los c (2022) is Los c (2023): ** Interpret frequency and related distributions. (include last figure)

3. Probability Concepts (2023)

**Los e (2022) is Los e (2023):** Demonstrate the application of the multiplication and addition rules for probability.(first 2 lines are deleted)

9. The Firm and Market Structures (2023)

**Los e (2022) is Los f (2023): **Explain factors affecting long-run equilibrium under each market structure.

**Los f (2022) is los e (2023): **Describe pricing strategy under each market structure.

12. Monetary and Fiscal Policy (2023)

**Los j (2022) is Los k (2023):**Describe qualities of effective central banks.

**Los k of (2022) is Los j (2023):** Explain the relationships between monetary policy and economic growth, inflation, interest, and exchange rates.

**Los p (2022) is los q (2023): **Describe tools of fiscal policy, including their advantages and disadvantages.

**Los q (2022) is Los p (2023): **Describe the arguments about whether the size of a national debt relative to GDP matters.

15. Currency Exchange Rates (2023)

**Los a (2022) is Los a (2023): **Define an exchange rate and distinguish between nominal and real exchange rates and spot and forward exchange rates.(some content changed)

**Los b (2022) is Los c (2023): **Describe functions of and participants in the foreign exchange market.

**Los c (2022) is Los b (2023):** Calculate and interpret the percentage change in a currency relative to another currency.

23. Long-Lived Assets (2023)

**Los c (2022) is Los c (2023):** Explain and evaluate how capitalising versus expensing costs in the period in which they are incurred affects. (Fig 23.1. Table is different.)

**Los f (2022) is Los g (2023): **Describe the different amortisation methods for intangible assets with finite lives and calculate amortisation expense.

**Los g (2022) is Los h (2023): **Describe how the choice of amortisation method and assumptions concerning useful life and residual value affect amortisation expense, financial statements and ratios.

**Los h (2022) is Los i (2023): **Describe the revaluation model.

**Los i (2022) is Los j (2023): **Explain the impairment of property, plant, and equipment and intangible assets.

**Los j (2022) is Los k (2023): **Explain the derecognition of property, plant, and equipment and intangible assets.

**Los k (2022) is Los f (2023): **Explain and evaluate how impairment, revaluation, and derecognition of property, plant, and equipment and intangible assets affect.

24. Income Taxes (2023)

1. los c of 2022 has been changed as los d of 2023.

2. los d of 2022 has been changed as los c of 2023.

3. los g of 2022 has been changed as los h of 2023.

4. los h of 2022 has been changed as los g of 2023.

31. Capital Investments (2023)

1. los a is added.

2. los a of 2022 has been changed as los b of 2023.

3. los b of 2022 has been changed as los c of 2023.

4. los c of 2022 has been changed as los e of 2023.

5. los d of 2022 has been changed as los f of 2023.

33. Cost Of Capital-Foundational Topics (2023)

1. los g of 2022 has been changed as los g of 2023 with some different content in"Correct Treatment of Flotation Costs".

37. Security Market Indexes (2023)

1. los k of 2022 has been changed as los i of 2023.

41. Equity Valuation: Concepts and Basic Tools (2022)

1. los f of 2022 has been changed as los g of 2023.

2. los g of 2022 has been changed as los h of 2023.

3. los h of 2022 has been changed as los i of 2023.

4. los i of 2022 has been changed as los j of 2023.

5. los j of 2022 has been changed as los k of 2023.

6. los k of 2022 has been changed as los l of 2023.

7. los l of 2022 has been changed as los m of 2023.

8. los m of 2022 has been changed as los f of 2023.

44. Introduction to Fixed-Income Valuation (2023)

1. los h of 2022 has been changed as los h of 2023 with different content.

62. Portfolio Risk and Return: Part I (2023)

1. los a,b,c of 2022 has been changed as los a,b,c of 2023.

2. los d of 2022 has been changed as los f of 2023.

3. los e of 2022 has been changed as los d of 2023.

4. los i of 2022 has been changed as los e of 2023.

5. los f of 2022 has been changed as los g of 2023.

6. los g, h of 2022 has been changed as los h, i of 2023.

71. Guidance For Standards I–VII (2023)

1. los b of 2022 has been changed as los c of 2023.

2. los c of 2022 has been changed as los b of 2023.

How are the changes related to the course shared?

All the changes in the syllabus, any extra practice done in the current live batch, any additional lectures are shared via google drive with the video students. All Guidance provided to the Live batches is shared with the Video Students as well. If you have enrolled earlier (more than a year before), generally there are minor changes in the syllabus and once the books are released, and the new chapters or changes done in the Live class, it is shared. (The syllabus is the same in a given Calendar Year) Students who defer the exam, or are unable to clear, get their validity extended and all the new chapters and changes on Drive. (No extra charges). Applicable for live students as well. They can continue attending the lectures or get the new lectures home.

- 2021-22
- 2022-23

35. Real Estate Investments (2022)

**a: **Compare the characteristics, classifications, principal risks, and basic forms of public and private real estate investments.

**b: **Explain portfolio roles and economic value determinants of real estate investments.

**c: **Discuss commercial property types, including their distinctive investment characteristics.

**d: **Explain the due diligence process for both private and public equity real estate investments.

**e: **Discuss real estate investment indexes, including their construction and potential biases.

**f:** Discuss the income, cost, and sales comparison approaches to valuing real estate properties.

**g: **Compare the direct capitalization and discounted cash flow valuation methods.

**h: **Estimate and interpret the inputs (for example, net operating income, capitalization rate, and discount rate) to the direct capitalization and discounted cash flow valuation methods.

**i: **Calculate the value of a property using the direct capitalization and discounted cash flow valuation methods.

**j: **Calculate and interpret financial ratios used to analyze and evaluate private real estate investments.

**k: **Discuss types of REITs.

**l: **Justify the use of net asset value per share (NAVPS) in REIT valuation and estimate NAVPS based on forecasted cash net operating income.

**m: **Describe the use of funds from operations (FFO) and adjusted funds from operations (AFFO) in REIT valuation.

**n: **Calculate and interpret the value of a REIT share using the net asset value, relative value (price-to-FFO and price-to-AFFO), and discounted cash flow approaches.

**o: **Explain advantages and disadvantages of investing in real estate through publicly traded securities compared to private vehicle.

41. Backtesting And Simulation (2022)

**a: **Describe objectives in backtesting an investment strategy.

**b: **Describe and contrast steps and procedures in backtesting an investment strategy.

**c: **Interpret metrics and visuals reported in a backtest of an investment strategy.

**d: **Identify problems in a backtest of an investment strategy.

**e: **Evaluate and interpret a historical scenario analysis.

**f:** Contrast Monte Carlo and historical simulation approaches.

**g: **Explain inputs and decisions in simulation and interpret a simulation.

**h: **Demonstrate the use of sensitivity analysis.

1. Introduction to Linear Regression (2022)

**Los a (2021) is Los a (2022):** Describe a simple linear regression model and the roles of the dependent and independent variables in the model.

**Los b (2021) is Los b (2022):** Describe the least squares criterion, how it is used to estimate regression coefficients, and their interpretation.

**Los b (2021) is Los c (2022):** Explain the assumptions underlying the simple linear regression model, and describe how residuals and residual plots indicate if these assumptions may have been violated.

**Los c, g (2021) is Los d (2022):** Calculate and interpret the coefficient of determination and the F-statistic in a simple linear regression.

**Los c, g (2021) is Los e (2022):** Describe the use of analysis of variance (ANOVA) in regression analysis, interpret ANOVA results, and calculate and interpret the standard error of estimate in a simple linear regression.

**Los d (2021) is Los f (2022):** Formulate a null and an alternative hypothesis about a population value of a regression coefficient, and determine whether the null hypothesis is rejected at a given level of significance.

**Los e, f (2021) is Los g (2022):** Calculate and interpret the predicted value for the dependent variable, and a prediction interval for it, given an estimated linear regression model and a value for the independent variable.

**Los h:** (Describe different functional forms of simple linear regressions) is added.

2. Multiple Regression (2022)

**Los a (2021) is Los a (2022):** Formulate a multiple regression equation to describe the relation between a dependent variable and several independent variables, and determine the statistical significance of each independent variable.

**Los b (2021) is Los b (2022):** Interpret estimated regression coefficients and their p-values.

**Los c (2021) is Los c (2022):** Formulate a null and an alternative hypothesis about the population value of a regression coefficient, calculate the value of the test statistic, and determine whether to reject the null hypothesis at a given level of significance.

**Los d (2021) is Los d (2022):** Interpret the results of hypothesis tests of regression coefficients.

**Los e (2021) is Los e (2022):** Calculate and interpret a predicted value for the dependent variable, given an estimated regression model and assumed values for the independent variables.

**Los f (2021) is Los f (2022):** Explain the assumptions of a multiple regression model.

**Los g (2021) is Los g (2022):** Calculate and interpret the F-statistic, and describe how it is used in regression analysis.

**Los h (2021) is Los h (2022):** Contrast and interpret the R2 and adjusted R2 in multiple regression.

**Los i (2021) is Los i (2022):** Evaluate how well a regression model explains the dependent variable by analyzing the output of the regression equation and an ANOVA table.

**Los j (2021) is Los j (2022):** Formulate and interpret a multiple regression, including qualitative independent variables.

**Los k (2021) is Los k (2022):** Explain the types of heteroskedasticity and how heteroskedasticity and serial correlation affect statistical inference.

**Los l (2021) is Los l (2022):** Describe multicollinearity, and explain its causes and effects in regression analysis.

**Los m (2021) is Los m (2022):** Describe how model misspecification affects the results of a regression analysis, and describe how to avoid common forms of misspecification.

**Los n (2021) is Los n (2022):** Interpret an estimated logistic regression.

**Los o (2021) is Los o (2022):** Evaluate and interpret a multiple regression model and its results.

15. Capital Structure (2022)

**Los a (2021) is Los a (2022):** Explain the Modigliani–Miller propositions regarding capital structure.

**Los a (2021) is Los b (2022):** Explain the effects on costs of capital and capital structure decisions of taxes, financial distress, agency costs, and asymmetric information.

**Los d (2021) is Los c (2022):** Explain factors an analyst should consider in evaluating the effect of capital structure policy on valuation.

**Los e (2021) is Los d (2022):** Describe international differences in the use of financial leverage, factors that explain these differences, and implications of these differences for investment analysis.

16. Analysis of Dividends and Share Repurchases (2022)

**Los a (2021) is Los a (2022):** Describe the expected effect of regular cash dividends, extra dividends, liquidating dividends, stock dividends, stock splits, and reverse stock splits on shareholders’ wealth and a company’s financial ratios.

**Los b (2021) is Los b (2022):** Compare theories of dividend policy and explain implications of each for share value given a description of a corporate dividend action.

**Los c (2021) is Los c (2022):** Describe types of information (signals) that dividend initiations, increases, decreases, and omissions may convey.

**Los d (2021) is Los d (2022):** Explain how agency costs may affect a company’s payout policy.

**Los e (2021) is Los e (2022):** Explain factors that affect dividend policy in practice.

**Los f (2021) is Los f (2022):** Calculate and interpret the effective tax rate on a given currency unit of corporate earnings under double taxation, dividend imputation, and split-rate tax systems.

**Los g (2021) is Los g (2022):** Compare stable dividend with constant dividend payout ratio, and calculate the dividend under each policy.

**Los h (2021) is Los h (2022):** Compare share repurchase methods.

**Los i (2021) is Los i (2022):** Calculate and compare the effect of a share repurchase on earnings per share when 1) the repurchase is financed with the company’s surplus cash and 2) the company uses debt to finance the repurchase.

**Los j (2021) is Los j (2022):** Calculate the effect of a share repurchase on book value per share.

**Los k (2021) is Los k (2022):** Explain the choice between paying cash dividends and repurchasing shares.

**Los l (2021) is Los l (2022):** Describe broad trends in corporate payout policies.

**Los m (2021) is Los m (2022):** Calculate and interpret dividend coverage ratios based on 1) net income and 2) free cash flow.

**Los n (2021) is Los n (2022):** Identify characteristics of companies that may not be able to sustain their cash dividend.

18. Mergers and Acquisitions (2022)

**Los a (2021) is Los a (2022):** Classify merger and acquisition (M&A) activities based on forms of integration and relatedness of business activities.

**Los b (2021) is Los b (2022):** Explain common motivations behind M&A activity.

**Los c (2021) is Los c (2022):** Explain bootstrapping of EPS and calculate a company’s post-merger EPS.

**Los d (2021) is Los d (2022):** Explain, based on industry life cycles, the relation between merger motivations and types of mergers.

**Los e (2021) is Los e (2022):** Contrast merger transaction characteristics by form of acquisition, method of payment, and attitude of target management.

**Los f (2021) is Los f (2022):** Distinguish among pre-offer and post-offer takeover defense mechanisms.

**Los h (2021) is Los g (2022):** Compare the discounted cash flow, comparable company, and comparable transaction analyses for valuing a target company, including the advantages and disadvantages of each.

**Los k (2021) is Los h (2022):** Evaluate a takeover bid and its effects on the target shareholders versus the acquirer shareholders.

**Los l (2021) is Los i (2022):** Explain how price and payment method affect the distribution of risks and benefits in M&A transactions.

**Los m (2021) is Los j (2022):** Describe characteristics of M&A transactions that create value.

**Los n (2021) is Los k (2022):** Distinguish among equity carve-outs, spin-offs, split-offs, and liquidation.

**Los o (2021) is Los l (2022):** Explain common reasons for restructuring.

19. Capital Budgeting (2022)

**Los a (2021) is Los a (2022):** Calculate the yearly cash flows of expansion and replacement capital projects and evaluate how the choice of depreciation method affects those cash flows.

**Los b (2021) is Los b (2022):** Explain how inflation affects capital budgeting analysis.

**Los c (2021) is Los c (2022):** Evaluate capital projects and determine the optimal capital project in situations of 1) mutually exclusive projects with unequal lives, using either the least common multiple of lives approach or the equivalent annual annuity approach, and 2) capital rationing.

**Los d (2021) is Los d (2022):** Explain how sensitivity analysis, scenario analysis, and Monte Carlo simulation can be used to assess the stand-alone risk of a capital project.

**Los f (2021) is Los e (2022):** Describe types of real options relevant to a capital project.

**Los g (2021) is Los f (2022):** Describe common capital budgeting pitfalls.

27. Private Company Valuation (2022)

**Los a (2021) is Los a (2022):** Compare public and private company valuation.

**Los b (2021) is Los b (2022):** Describe uses of private business valuation and explain applications of greatest concern to financial analysts.

**Los d (2021) is Los c (2022):** Explain the income, market, and asset-based approaches to private company valuation and factors relevant to the selection of each approach.

**Los e (2021) is Los d (2022):** Explain cash flow estimation issues related to private companies and adjustments required to estimate normalized earnings.

**Los f (2021) is Los e (2022):** Calculate the value of a private company using free cash flow, capitalized cash flow, and/or excess earnings methods.

**Los g (2021) is Los f (2022):** Explain factors that require adjustment when estimating the discount rate for private companies.

**Los h (2021) is Los g (2022):** Compare models used to estimate the required rate of return to private company equity (for example, the CAPM, the expanded CAPM, and the build-up approach).

**Los i (2021) is Los h (2022):** Calculate the value of a private company based on market approach methods and describe advantages and disadvantages of each method.

**Los j (2021) is Los i (2022):** Describe the asset-based approach to private company valuation.

**Los k (2021) is Los j (2022):** Explain and evaluate the effects on private company valuations of discounts and premiums based on control and marketability.

28. The Term Structure and Interest Rate Dynamics (2022)

**Los a (2021) is Los a (2022):** Describe relationships among spot rates, forward rates, yield to maturity, expected and realized returns on bonds, and the shape of the yield curve.

**Los c (2021) is Los b (2022):** Describe how zero-coupon rates (spot rates) may be obtained from the par curve by bootstrapping.

**Los d (2021) is Los c (2022):** Describe the assumptions concerning the evolution of spot rates in relation to forward rates implicit in active bond portfolio management.

**Los e (2021) is Los d (2022):** Describe the strategy of rolling down the yield curve.

**Los f (2021) is Los e (2022):** Explain the swap rate curve and why and how market participants use it in valuation.

**Los g (2021) is Los f (2022):** Calculate and interpret the swap spread for a given maturity.

**Los h, i (2021) is Los g (2022):** Describe short-term interest rate spreads used to gauge economy-wide credit risk and liquidity risk.

**Los j (2021) is Los h (2022):** Explain traditional theories of the term structure of interest rates and describe the implications of each theory for forward rates and the shape of the yield curve.

**Los l (2021) is Los i (2022):** Explain how a bond’s exposure to each of the factors driving the yield curve can be measured and how these exposures can be used to manage yield curve risks.

**Los m (2021) is Los j (2022):** Explain the maturity structure of yield volatilities and their effect on price volatility.

**Los k:** (Explain how key economic factors are used to establish a view on benchmark rates, spreads, and yield curve changes) is added.

29. The Arbitrage-Free Valuation Framework (2022)

**Los a (2021) is Los a (2022):** Explain what is meant by arbitrage-free valuation of a fixed-income instrument.

**Los b (2021) is Los b (2022):** Calculate the arbitrage-free value of an option-free, fixed-rate coupon bond.

**Los c (2021) is Los c (2022):** Describe a binomial interest rate tree framework.

**Los e (2021) is Los d (2022):** Describe the process of calibrating a binomial interest rate tree to match a specific term structure.

**Los d (2021) is Los e (2022):** Describe the process of calibrating a binomial interest rate tree to match a specific term structure.

**Los f (2021) is Los f (2022):** Compare pricing using the zero-coupon yield curve with pricing using an arbitrage-free binomial lattice.

**Los g (2021) is Los g (2022):** Describe pathwise valuation in a binomial interest rate framework and calculate the value of a fixed income instrument given its cash flows along each path.

**Los h (2021) is Los h (2022):** Describe a Monte Carlo forward-rate simulation and its application.

**Los k (2021) is Los i (2022):** Describe term structure models and how they are used.

33. Pricing and Valuation of Forward Commitments (2022)

**Los a (2021) is Los a (2022):** Describe the carry arbitrage model without underlying cashflows and with underlying cashflows.

**Los a, b (2021) is Los b (2022):** Describe how equity forwards and futures are priced, and calculate and interpret their no-arbitrage value.

**Los a, b (2021) is Los c (2022):** Describe how interest rate forwards and futures are priced, and calculate and interpret their no-arbitrage value.

**Los a, b (2021) is Los d (2022):** Describe how fixed-income forwards and futures are priced, and calculate and interpret their no-arbitrage value.

**Los c, d (2021) is Los e (2022):** Describe how interest rate swaps are priced, and calculate and interpret their no-arbitrage value.

**Los c, d (2021) is Los f (2022):** Describe how currency swaps are priced, and calculate and interpret their no-arbitrage value.

**Los c, d (2021) is Los g (2022):** Describe how equity swaps are priced, and calculate and interpret their no-arbitrage value.

36. Private Equity Investments (2022)

**Los a (2021) is Los a (2022):** Explain sources of value creation in private equity.

**Los b (2021) is Los b (2022):** Explain how private equity firms align their interests with those of the managers of portfolio companies.

**Los c (2021) is Los c (2022):** Compare and contrast characteristics of buyout and venture capital investments.

**Los d (2021) is Los d (2022):** Interpret LBO model and VC method output.

**Los e (2021) is Los e (2022):** Explain alternative exit routes in private equity and their impact on value.

**Los g (2021) is Los f (2022):** Explain risks and costs of investing in private equity.

**Los f (2021) is Los g (2022):** Explain private equity fund structures, terms, due diligence, and valuation in the context of an analysis of private equity fund returns.

**Los h (2021) is Los h (2022):** Interpret and compare financial performance of private equity funds from the perspective of an investor.

**Los i (2021) is Los i (2022):** Calculate management fees, carried interest, net asset value, distributed to paid in (DPI), residual value to paid in (RVPI), and total value to paid in (TVPI) of a private equity fund.

42. Economics and Investment Markets (2022)

**Los a (2021) is Los a (2022):** Explain the notion that to affect market values, economic factors must affect one or more of the following: 1) default-free interest rates across maturities, 2) the timing and/or magnitude of expected cash flows, and 3) risk premiums.

**Los b (2021) is Los b (2022):** Explain the role of expectations and changes in expectations in market valuation.

**Los c (2021) is Los c (2022):** Explain the relationship between the long-term growth rate of the economy, the volatility of the growth rate, and the average level of real short-term interest rates.

**Los d (2021) is Los d (2022):** Explain how the phase of the business cycle affects policy and short-term interest rates, the slope of the term structure of interest rates, and the relative performance of bonds of differing maturities.

**Los e (2021) is Los e (2022):** Describe the factors that affect yield spreads between non-inflation-adjusted and inflation-indexed bonds.

**Los f (2021) is Los f (2022):** Explain how the phase of the business cycle affects credit spreads and the performance of credit-sensitive fixed-income instruments.

**Los g (2021) is Los g (2022):** Explain how the characteristics of the markets for a company’s products affect the company’s credit quality.

**Los h (2021) is Los h (2022):** Explain how the phase of the business cycle affects short-term and long-term earnings growth expectations.

**Los i (2021) is Los i (2022):** Explain the relationship between the consumption hedging properties of equity and the equity risk premium.

**Los j (2021) is Los j (2022):** Describe cyclical effects on valuation multiples.

**Los l (2021) is Los k (2022):** Describe how economic analysis is used in sector rotation strategies.

**Los m (2021) is Los l (2022):** Describe the economic factors affecting investment in commercial real estate.

9. Probaibilites Approaches: Scenario Analysis, Decision Tress and Simulation (2021)

Chapter has been deleted.

39. Private Real Estate Investments (2021)

Chapter has been deleted.

40. Publicly Traded Real Estate Securities (2021)

Chapter has been deleted.

17. Cost of Capital: Advanced Topics (2023)

**a: **Explain top-down and bottom-up factors that impact the cost of capital.

**b: **Compare methods used to estimate the cost of debt.

**c: **Explain historical and forward-looking approaches to estimating an equity risk premium.

**d: **Compare methods used to estimate the required return on equity.

**e: **Estimate the cost of debt or required return on equity for a public company and a private company.

**f:** Evaluate a company’s capital structure and cost of capital relative to peers.

18. Corporate Restructuring (2023)

**a: **Explain types of corporate restructurings and issuers’ motivations for pursuing them.

**b: **Explain the initial evaluation of a corporate restructuring.

**c: **Demonstrate valuation methods for, and interpret valuations of, companies involved in corporate restructurings.

**d: **Demonstrate how corporate restructurings affect an issuer’s EPS, net debt to EBITDA ratio, and weighted average cost of capital.

**e: **Evaluate corporate investment actions, including equity investments, joint ventures, and acquisitions.

**f:** Evaluate corporate divestment actions, including sales and spin offs.

**g: **Evaluate cost and balance sheet restructurings.

1. Multiple Regression (2023)

**Los a: **(Describe the types of investment problems addressed by multiple linear regression and the regression process) is added.

**Los 2a+2b (2022) is Los 1b(2023): **Formulate a multiple linear regression model, describe the relation between the dependent variable and several independent variables, and interpret estimated regression coefficients.

**Los c:** (Explain the assumptions underlying a multiple linear regression model and interpret residual plots indicating potential violations of these assumptions) is added.

**Los 2i (2022) is Los 1d (2023): **Evaluate how well a multiple regression model explains the dependent variable by analyzing ANOVA table results and measures of goodness of fit.

**Los e: **(Formulate hypotheses on the significance of two or more coefficients in a multiple regression model and interpret the results of the joint hypothesis tests) is added.

**Los 2e (2022) is Los 1f (2023): **Calculate and interpret a predicted value for the dependent variable, given the estimated regression model and assumed values for the independent variables.

**Los 2m (2022) is Los 1g (2023):** Describe how model misspecification affects the results of a regression analysis and how to avoid common forms of misspecification.

**Los 2k (2022) is Los 1h (2023):** Explain the types of heteroskedasticity and how it affects statistical inference.

**Los i: **(Explain serial correlation and how it affects statistical inference) is added.

**Los 2l (2022) is Los 1j (2023):** Explain multicollinearity and how it affects regression analysis.

**Los k: **(Describe influence analysis and methods of detecting influential data point) is added.

**Los 2j (2022) is Los 1l (2023):** Formulate and interpret a multiple regression model that includes qualitative independent variables.

**Los 2n (2022) is Los 1m (2023):** Formulate and interpret a logistic regression model.

**Los 2a (2022):** (Formulate a multiple regression equation to describe the relation between a dependent variable and several independent variables, and determine the statistical significance of each independent variable) is deleted.

**Los 2b (2022): **(Interpret estimated regression coefficients and their p-values) is deleted.

**Los 2c (2022): **(Formulate a null and an alternative hypothesis about the population value of a regression coefficient, calculate the value of the test statistic, and determine whether to reject the null hypothesis at a given level of significance) is deleted.

**Los 2d (2022): **(Interpret the results of hypothesis tests of regression coefficients) is deleted.

**Los 2f (2022): **(Explain the assumptions of a multiple regression model) is deleted.

**Los 2g (2022):** (Calculate and interpret the F-statistic, and describe how it is used in regression analysis) is deleted.

**Los 2h (2022): **(Contrast and interpret the R2 and adjusted R2 in multiple regression) is deleted.

**Los 2o (2022): **(Evaluate and interpret a multiple regression model and its results) is deleted.

5. Currency Exchange Rates: Understanding Equilibrium Value (2023)

**Los 6a (2022) is Los 5a (2023):** Calculate and interpret the bid–offer spread on a spot or forward currency quotation and describe the factors that affect the bid–offer spread.

**Los 6b (2022) is Los 5b (2023):** Identify a triangular arbitrage opportunity and calculate its profit, given the bid–offer quotations for three currencies.

**Los 6c (2022) is Los 5c (2023):** Explain spot and forward rates and calculate the forward premium/discount for a given currency.

**Los 6d (2022) is Los 5d (2023):** Calculate the mark-to-market value of a forward contract.

**Los 6e (2022) is Los 5e (2023):** Explain international parity conditions (covered and uncovered interest rate parity, forward rate parity, purchasing power parity, and the international Fisher effect).

**Los 6f (2022) is Los 5f (2023):** Describe relations among the international parity conditions.

**Los 6g (2022) is Los 5g (2023):** Evaluate the use of the current spot rate, the forward rate, purchasing power parity, and uncovered interest parity to forecast future spot exchange rates.

**Los 6h (2022) is Los 5h (2023):** Explain approaches to assessing the long-run fair value of an exchange rate.

**Los 6i (2022) is Los 5i (2023):** Describe the carry trade and its relation to uncovered interest rate parity and calculate the profit from a carry trade.

**Los 6j (2022) is Los 5j (2023):** Explain how flows in the balance of payment accounts affect currency exchange rates.

**Los 6k (2022) is Los 5k (2023): **Explain the potential effects of monetary and fiscal policy on exchange rates.

**Los 6l (2022) is Los 5l (2023):** Describe objectives of central bank or government intervention and capital controls and describe the effectiveness of intervention and capital controls.

**Los 6m (2022) is Los 5m (2023):** Describe warning signs of a currency crisis.

14. Financial Statement Modeling (2023)

**Los 22a (2022) is Los 14a (2023):** Compare top-down, bottom-up, and hybrid approaches for developing inputs to equity valuation models.

**Los 22b (2022) is Los 14b (2023):** Compare “growth relative to GDP growth” and “market growth and market share” approaches to forecasting revenue.

**Los 22c (2022) is Los 14c (2023):** Evaluate whether economies of scale are present in an industry by analyzing operating margins and sales levels.

**Los 22d (2022) is Los 14d(2023): **Demonstrate methods to forecast cost of goods sold and operating expenses.

**Los 22d (2022) is Los 14e (2023):** Demonstrate methods to forecast non-operating items, financing costs, and income taxes.

**Los 22e (2022) is Los 14f (2023):** Describe approaches to balance sheet modeling.

**Los 22m (2022) is Los 14g (2023):** Demonstrate the development of a sales-based pro forma company model.

**Los h: **(Explain how behavioral factors affect analyst forecasts and recommend remedial actions for analyst biases) is added.

**Los 22g (2022) is Los 14i (2023):** Explain how competitive factors affect prices and costs.

**Los 22h (2022) is Los 14j (2023):** Evaluate the competitive position of a company based on a Porter’s five forces analysis.

**Los 22i (2022) is Los 14k (2023):** Explain how to forecast industry and company sales and costs when they are subject to price inflation or deflation.

**Los 22j (2022) is Los 14l (2023):** Evaluate the effects of technological developments on demand, selling prices, costs, and margins.

**Los 22k (2022) is Los 14m (2023):** Explain considerations in the choice of an explicit forecast horizon.

**Los 22l (2022) is Los 14n (2023):** Explain an analyst’s choices in developing projections beyond the short-term forecast horizon.

**Los 22f (2022):** (Describe the relationship between return on invested capital and competitive advantage) is deleted.

23. Residual Income Valuation (2023)

**Los 26a (2022) is Los 23a (2023):** Calculate and interpret residual income, economic value added, and market value added.

**Los 26b (2022) is Los 23b (2023):** Describe the uses of residual income models.

**Los 26c (2022) is Los 23c (2023):** Calculate the intrinsic value of a common stock using the residual income model and compare value recognition in residual income and other present value models.

**Los 26d (2022) is Los 23d (2023):** Explain fundamental determinants of residual income.

**Los 26e (2022) is Los 23e (2023):** Explain the relation between residual income valuation and the justified price-to-book ratio based on forecasted fundamentals.

**Los 26f (2022) is Los 23f (2023):** Calculate and interpret the intrinsic value of a common stock using single-stage (constant-growth) and multistage residual income models.

**Los 26g (2022) is Los 23g (2023):** Calculate the implied growth rate in residual income, given the market price-to-book ratio and an estimate of the required rate of return on equity.

**Los 26h (2022) is Los 23h (2023):** Explain continuing residual income and justify an estimate of continuing residual income at the forecast horizon, given company and industry prospects.

**Los 26i (2022) is Los 23i (2023):** Compare residual income models to dividend discount and free cash flow models.

**Los 26j (2022) is Los 23j (2023):** Explain strengths and weaknesses of residual income models and justify the selection of a residual income model to value a company’s common stock.

**Los 26k (2022) is Los 23k (2023):** Describe accounting issues in applying residual income models.

**Los 26l (2022):** (Evaluate whether a stock is overvalued, fairly valued, or undervalued based on a residual income model) is deleted.

32. Real Estate Investments (2023)

**Los 35a (2022) is Los 32a (2023): **Compare the characteristics, classifications, principal risks, and basic forms of public and private real estate investments.**Los 35b (2022) is Los 32b (2023): **Explain portfolio roles and economic value determinants of real estate investments.**Los 35c (2022) is Los 32c (2023): **Discuss commercial property types, including their distinctive investment characteristics.**Los 35d (2022) is Los 32d (2023): **Explain the due diligence process for both private and public equity real estate investments.**Los 35e(2022) is Los 32e (2023): **Discuss real estate investment indexes, including their construction and potential biases.

**Los 35f (2022) is Los 32f (2023):** Discuss the income, cost, and sales comparison approaches to valuing real estate properties.**Los 35g (2022) is Los 32g (2023): **Compare the direct capitalization and discounted cash flow valuation methods.**Los 35h (2022) is Los 32h (2023): **Estimate and interpret the inputs (for example, net operating income, capitalization rate, and discount rate) to the direct capitalization and discounted cash flow valuation methods.**Los 35i (2022) is Los 32i (2023): **Calculate the value of a property using the direct capitalization and discounted cash flow valuation methods.**Los 35j (2022) is Los 32j (2023): **Calculate and interpret financial ratios used to analyze and evaluate private real estate investments.**Los 35k (2022) is Los 32k (2023): **Discuss types of REITs.**Los 35l (2022) is Los 32l (2023): **Justify the use of net asset value per share (NAVPS) in REIT valuation and estimate NAVPS based on forecasted cash net operating income.**Los 35m (2022) is Los 32m (2023): **Describe the use of funds from operations (FFO) and adjusted funds from operations (AFFO) in REIT valuation.**Los 35n (2022) is Los 32n (2023): **Calculate and interpret the value of a REIT share using the net asset value, relative value (price-to-FFO and price-to-AFFO), and discounted cash flow approaches.**Los 35o (2022) is Los 32o (2023): **Explain advantages and disadvantages of investing in real estate through publicly traded securities compared to private vehicles.

39. Economics and Investment Markets (2023)

**Los 42a (2022) is Los 39a (2023): **Explain the notion that to affect market values, economic factors must affect one or more of the following: 1) default-free interest rates across maturities, 2) the timing and/or magnitude of expected cash flows, and 3) risk premiums.**Los 42b (2022) is Los 39b (2023): **Explain the role of expectations and changes in expectations in market valuation.**Los 42c (2022) is Los 39c (2023): **Explain the relationship between the long-term growth rate of the economy, the volatility of the growth rate, and the average level of real short-term interest rates.**Los 42d (2022) is Los 39d (2023): **Explain how the phase of the business cycle affects policy and short-term interest rates, the slope of the term structure of interest rates, and the relative performance of bonds of differing maturities.**Los 42e (2022) is Los 39e (2023): **Describe the factors that affect yield spreads between non-inflation-adjusted and inflation-indexed bonds.**Los 42f (2022) is Los 39f (2023): **Explain how the phase of the business cycle affects credit spreads and the performance of credit-sensitive fixed-income instruments.**Los 42g (2022) is Los 39g (2023): **Explain how the characteristics of the markets for a company’s products affect the company’s credit quality.**Los 42i (2022) is Los 39h (2023): **Explain the relationship between the consumption hedging properties of equity and the equity risk premium.**Los 42h (2022)is Los 39i (2023): **Explain how the phase of the business cycle affects short-term and long-term earnings growth expectations.**Los 42j (2022) is Los 39j (2023): **Describe cyclical effects on valuation multiples.**Los 42l (2022) is Los 39k (2023): **Describe the economic factors affecting investment in commercial real estate.

**Los 42k (2022): **(Describe how economic analysis is used in sector rotation strategies) is deleted.

1. Introduction to Linear Regression (2022)

Chapter has been deleted.

15. Capital Structure (2022)

Chapter has been deleted.

19. Capital Budgeting (2022)

Chapter has been deleted.

21. Return Concepts (2022)

Chapter has been deleted.

There are no changes in C3 2023 Curriculum

Changes are not yet released

Changes are not yet released

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