BOOK 1 — ETHICAL AND PROFESSIONAL STANDARDS AND QUANTITATIVE METHODS Readings and Learning Outcome Statements Study Session 1 ~ Ethical and Professional Standards Self-Test ~ Ethical and Professional Standards Study Session 2 - Ethical and Pyofessional Standards: Application Study Session 3 - Quantitative Methods Self-Tese — Quantitative Methods Formulas Appendices Index. 88 117 138 255 259 261 270Fehis book does not have a front and back cover, ie was distributed withoue permission of Schweser, a Division of Kaplan, Inc, and isin direc violation of global copyright laws. Your assistance in parsuing poccntal violators ofthis law is graely appreciated. 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Disclaimer: The Schweser Notes should be used in conjunction with the orginal readings a set forth by CFA lastnute in this 2007 CEA Level 2 Study Guide. The information contained in these Noes covers topics contained inthe readings referenced by CFA Insgizute and is believed vo be accurate. However, cheir accuracy cannot be guaranrced nor ie any watrany conveyed asta your ukimate exam sucess, The author of te referenced readings have not endorsed or sponsored these Notes, nor are the afiated with Schweser Study Program Page 2 (2008 SchweserWELCOME TO THE 2008 SCHWESER STUDY NOTES “Yhank you for teusting Schweser to help you reach your goals. We are all very pleased to be able to help you prepare for the Level 2 CFA Exam. In this introduction, I want co explain the resources included with the Study Notes, suggest how you can best use Schweser materials to prepare for the exam, and direst you toward other ‘educational resources you will find helpful as you study for the exam, Besides the Study Notes themselves, there are many educational resources available at Schweser.com. Just log in using the individual username and password that you received when you purchased the Schweser Study Notes, and go to Online Access. All purchasers of our 2008 Level 2 Schweser Study Notes pack receive: Seudy Notes ~ Five volumes that include complete coverage of all 18 Study Sessions and all Learning Outcome Statements (LOS) with examples, Concept Checkers (multiple-choice questions for every reading), and Challenge Problems for many readings to help you master the material and check your progress. At the end of each topic area, we inciude a Self-cest. Self-test questions arc created to be exam-like in format and difficulty in order for you to evaluate how well your study of each copic has prepared you for the actual exam. Practice Exams Volume 1 ~ Three full (240-question, 6-hour) Level 2 practice exams to help you prepare for the exam itself as well as to better targes your final review efforts. Schweser Library ~ I have created five videos thae are available ¢o all Schweser Study Notes purchasers. Bach Schweser Library volume is approximately 30 0 60 minutes length. Topics include: “Ineroduction co Item Sets,” “Hypothesis Testing,” “Foreign Exchange Basics,” “Ratio Analysis,” and “Forward Contracts.” Schweser Study Planner ~ Use your Online Access to ell us when you will scart and what days of the week you can swudy. Study Planner will create a study plan just for you, breaking each study session into daily and weekly tasks to keep you on track and help you monitos your progress through the cuzticulum, Ifyou purchased the Schweser Study Notes as part of the Essential or Premiam Package, you will also receive access to Faculty Office Hours. Office Hours allow you to get your questions about the curriculum answered in real time and see others’ questions (and faculty answess). Office hours is a text-based live interactive online chat swith me and ocher Level 2 experts. Archives of previous Office Hours sessions are sorted by topic and are posted shortly after each session. ‘The Level 2 CFA exam is a formidable challenge (72 Readings and 480+ Learning Outcome Sratements), and you must devote considerable time and effort co be properly prepared. There is no shortcut; you must learn che ‘material, know the cerminology and techniques, understand the concepts, and be able to answer (70% of) 120 questions quickly and correctly. Fifteen ro 20 hours per week for 20 weeks is probably a good estimate of the study time required on average, but some candidates will need more rime ot less depending on cheir individual backgrounds and experience. To help you master this material and be well prepared for the CFA Exam, we offer several othet educational resources, including: Live Weekly Classroom Programs ~ We offer weekly classroom programs in several large cities. Please check at Schweser.com for locations, dates, and availabiliey,