,Book 2: Portfolio Management (Part
One) and Corporate Issuers
SchweserNotes™ 2024
Level I CFA®
,SCHWESERNOTES™ 2024 LEVEL I CFA® BOOK 2: PORTFOLIO MANAGEMENT (PART ONE) AND CORPORATE
ISSUERS
©2023 Kaplan, Inc. All rights reserved.
Published in 2023 by Kaplan, Inc.
ISBN: 978-1-0788-3537-4
These materials may not be copied without written permission from the author. The
unauthorized duplication of these notes is a violation of global copyright laws and the CFA
Institute Code of Ethics. Your assistance in pursuing potential violators of this law is greatly
appreciated.
Required CFA Institute Disclaimer: “Kaplan Schweser is a CFA Institute Prep Provider. Only CFA
Institute Prep Providers are permitted to make use of CFA Institute copyrighted materials which
are the building blocks of the exam. We are also required to create/use updated materials every
year and this is validated by CFA Institute. Our products and services substantially cover the
relevant curriculum and exam and this is validated by CFA Institute. In our advertising, any
statement about the numbers of questions in our products and services relates to unique,
original, proprietary questions. CFA Institute Prep Providers are forbidden from including CFA
Institute official mock exam questions or any questions other than the end of reading questions
within their products and services.
CFA Institute does not endorse, promote, review or warrant the accuracy or quality of the product
and services offered by Kaplan Schweser. CFA Institute®, CFA® and “Chartered Financial
Analyst®” are trademarks owned by CFA Institute.”
Certain materials contained within this text are the copyrighted property of CFA Institute. The
following is the copyright disclosure for these materials: “© Copyright CFA Institute”.
Disclaimer: The Schweser study tools should be used in conjunction with the original readings as
set forth by CFA Institute. The information contained in these study tools covers topics contained
in the readings referenced by CFA Institute and is believed to be accurate. However, their
accuracy cannot be guaranteed nor is any warranty conveyed as to your ultimate exam success.
The authors of the referenced readings have not endorsed or sponsored these study tools.
,CONTENTS
Learning Outcome Statements (LOS)
PORTFOLIO MANAGEMENT (PART ONE)
READING 20
Portfolio Risk and Return: Part I
Module 20.1: Historical Risk and Return
Module 20.2: Risk Aversion
Module 20.3: Portfolio Standard Deviation
Module 20.4: The Efficient Frontier
Key Concepts
Answer Key for Module Quizzes
READING 21
Portfolio Risk and Return: Part II
Module 21.1: Systematic Risk and Beta
Module 21.2: The CAPM and the SML
Key Concepts
Answer Key for Module Quizzes
CORPORATE ISSUERS
READING 22
Organizational Forms, Corporate Issuer Features, and Ownership
Module 22.1: Features of Corporate Issuers
Key Concepts
Answer Key for Module Quizzes
READING 23
Investors and Other Stakeholders
Module 23.1: Stakeholders and ESG Factors
Key Concepts
Answer Key for Module Quizzes
READING 24
Corporate Governance: Conflicts, Mechanisms, Risks, and Benefits
Module 24.1: Corporate Governance
Key Concepts
Answer Key for Module Quizzes
READING 25
, Working Capital and Liquidity
Module 25.1: Liquidity Measures and Management
Key Concepts
Answer Key for Module Quizzes
READING 26
Capital Investments and Capital Allocation
Module 26.1: Capital Investments and Project Measures
Module 26.2: Capital Allocation Principles and Real Options
Key Concepts
Answer Key for Module Quizzes
READING 27
Capital Structure
Module 27.1: Weighted-Average Cost of Capital
Module 27.2: Capital Structure Theories
Key Concepts
Answer Key for Module Quizzes
READING 28
Business Models
Module 28.1: Business Model Features and Types
Key Concepts
Answer Key for Module Quizzes
Topic Quiz: Corporate Issuers
Formulas
Index
One) and Corporate Issuers
SchweserNotes™ 2024
Level I CFA®
,SCHWESERNOTES™ 2024 LEVEL I CFA® BOOK 2: PORTFOLIO MANAGEMENT (PART ONE) AND CORPORATE
ISSUERS
©2023 Kaplan, Inc. All rights reserved.
Published in 2023 by Kaplan, Inc.
ISBN: 978-1-0788-3537-4
These materials may not be copied without written permission from the author. The
unauthorized duplication of these notes is a violation of global copyright laws and the CFA
Institute Code of Ethics. Your assistance in pursuing potential violators of this law is greatly
appreciated.
Required CFA Institute Disclaimer: “Kaplan Schweser is a CFA Institute Prep Provider. Only CFA
Institute Prep Providers are permitted to make use of CFA Institute copyrighted materials which
are the building blocks of the exam. We are also required to create/use updated materials every
year and this is validated by CFA Institute. Our products and services substantially cover the
relevant curriculum and exam and this is validated by CFA Institute. In our advertising, any
statement about the numbers of questions in our products and services relates to unique,
original, proprietary questions. CFA Institute Prep Providers are forbidden from including CFA
Institute official mock exam questions or any questions other than the end of reading questions
within their products and services.
CFA Institute does not endorse, promote, review or warrant the accuracy or quality of the product
and services offered by Kaplan Schweser. CFA Institute®, CFA® and “Chartered Financial
Analyst®” are trademarks owned by CFA Institute.”
Certain materials contained within this text are the copyrighted property of CFA Institute. The
following is the copyright disclosure for these materials: “© Copyright CFA Institute”.
Disclaimer: The Schweser study tools should be used in conjunction with the original readings as
set forth by CFA Institute. The information contained in these study tools covers topics contained
in the readings referenced by CFA Institute and is believed to be accurate. However, their
accuracy cannot be guaranteed nor is any warranty conveyed as to your ultimate exam success.
The authors of the referenced readings have not endorsed or sponsored these study tools.
,CONTENTS
Learning Outcome Statements (LOS)
PORTFOLIO MANAGEMENT (PART ONE)
READING 20
Portfolio Risk and Return: Part I
Module 20.1: Historical Risk and Return
Module 20.2: Risk Aversion
Module 20.3: Portfolio Standard Deviation
Module 20.4: The Efficient Frontier
Key Concepts
Answer Key for Module Quizzes
READING 21
Portfolio Risk and Return: Part II
Module 21.1: Systematic Risk and Beta
Module 21.2: The CAPM and the SML
Key Concepts
Answer Key for Module Quizzes
CORPORATE ISSUERS
READING 22
Organizational Forms, Corporate Issuer Features, and Ownership
Module 22.1: Features of Corporate Issuers
Key Concepts
Answer Key for Module Quizzes
READING 23
Investors and Other Stakeholders
Module 23.1: Stakeholders and ESG Factors
Key Concepts
Answer Key for Module Quizzes
READING 24
Corporate Governance: Conflicts, Mechanisms, Risks, and Benefits
Module 24.1: Corporate Governance
Key Concepts
Answer Key for Module Quizzes
READING 25
, Working Capital and Liquidity
Module 25.1: Liquidity Measures and Management
Key Concepts
Answer Key for Module Quizzes
READING 26
Capital Investments and Capital Allocation
Module 26.1: Capital Investments and Project Measures
Module 26.2: Capital Allocation Principles and Real Options
Key Concepts
Answer Key for Module Quizzes
READING 27
Capital Structure
Module 27.1: Weighted-Average Cost of Capital
Module 27.2: Capital Structure Theories
Key Concepts
Answer Key for Module Quizzes
READING 28
Business Models
Module 28.1: Business Model Features and Types
Key Concepts
Answer Key for Module Quizzes
Topic Quiz: Corporate Issuers
Formulas
Index
