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 Cfa Paperwork Research Conventional paper

CFA Level I Research Notes

Working on: SS11: Economic Statement Evaluation

SS five – Understanding Business Periods

Table of Contents

Research Session a few – Designated Reading #12 – Technological Analysis4

Analyze Session your five – Assigned Reading #18 – Understanding Business Cycles13

Study Treatment 11 – Assigned Reading #36 – Capital Budgeting15

Study Program 11 – Assigned Studying #37 – Cost of Capital19

Study Treatment 11 – Assigned Reading #38 – Measures of Leverage22

Research Session 10 – Designated Reading #39 – Returns and Share Repurchases25

Study Program 11 – Assigned Studying #40 – Working Capital Management29

Study Period 11 – Assigned Examining #41 – Financial Assertion Analysis33

Research Session 14 – Assigned Reading #42 – The Corporate Governance of Listed Businesses: A Manual for Investors34

Study Program 13 – Assigned Browsing #47 – Market Organization Structure35

Research Session a few – Assigned Reading #12 – Complex technical analysis

Technical analysis – study of collective market segment, while expressed in buying/selling of assets to predict long term behaviour 2. Based on the idea that prices are determined by source and require * Those who trade impact the prices

* Better knowledgeable individuals sama dengan buy in larger amounts

* Key supposition: efficient markets hypothesis does not hold – market rates reflect both equally rational and irrational behavior * Uses share value and trading volume data to project a goal price 2. Not focused on identifying the reason why for trading, but only what investments have occurred * Advantage: genuine price and volume data is observable, can be put on the prices of assets that do not develop future cash flows (dividends or interest), such as products, can be used once fraud takes place * Cons: limited in markets wherever price and volume data might not genuinely reflect supply and demand (e. g. illiquid markets and marketplaces that can be manipulated; currency market)

Fundamental examination – efforts to determine the inbuilt value associated with an asset 2. Uses economical statements

* Data utilized is subject to assumptions/restatements

2. Require subjective judgment

Collection Charts

* Simplest complex technical analysis chart

5. Prices of every period as a continuous range

Bar Chart

* Display high/lows for each and every trading period

* Generally include starting price

2. Each period displayed as a vertical series with

* Closing price is dash on the proper side with the line

5. Opening price are dash on the left of the series

Candlestick Chart

* Same data as bar graphs, but there is also a box around opening/close rather than line; package can be: 2. Clear – closing price are higher than opening

* Completed – closing price is below opening

Point and figure graphs

* Within identifying within direction of price motions * Attracted on chart paper; price is on y-axis

* Value increments selected = box size for the data

* Exceptional characteristic: x-axis represents enhancements made on direction (not unit of time)

Quantity charts – typically viewed below value charts with each period's volume demonstrated as a up and down line

Comparative strength analysis – to do this, you should calculate the ratios associated with an asset's concluding prices to benchmark values and pulls a series chart of the ratios 2. Increasing tendency outperforming standard (positive comparable strength) 2. Decreasing craze underperforming the benchmark (negative relative strength) Trendlines

* Identifies whether a trend is continuing/reversing

2. Breakdown/breakup may signify end of the prior trend 2. Represent standard of support resistance

* Support level – obtaining prevents additional price lower * Amount of resistance level – selling helps prevent further cost increase 2. Breakdown/breakout often occur in important rates or historic high/lows


* Rates are continuously reaching higher highs

* Rates are retracting to higher lows

* Demand is increasing relative...