Skip to content

CFA Study Guide

CFA Level II

Module 42.5 LOS 42.m: Financial ratios used to analyze private real estate investments

May 17, 2019 by CFA Study Guide
cfa alternative assets

Lenders often use the debt service coverage ratio (DSCR) and the loan-to-value (LTV) ratio to determine the maximum loan amount on a specific property. …

Read more

Module 42.4 LOS 42.i: Valuing Real Estate Using the Cost and Sales Comparison Approach

May 17, 2019 by CFA Study Guide
cfa alternative assets

Cost Comparison Approach Estimate the market value of the land. The value of the land is estimated separately, often using the …

Read more

Module 42.2 LOS 42.g: Direct Capitalization Approach

May 17, 2019 by CFA Study Guide
cfa alternative assets

In the direct capitalization approach to property valuation, we discount or “capitalize” first year NOI by the capitalization rate. NOI …

Read more

Module 40.1-40.2: Option Binomial Trees

May 17, 2019 by CFA Study Guide
CFA Fixed Income

We can apply binomial trees to calculate the value of options. Options generate tree paths by the 2 states that …

Read more

Module 40.6: The Black Scholes Merton Model

May 17, 2019 by CFA Study Guide
CFA Fixed Income

The BSM model allows us to value options continuously in real time, as long as the no-arbitrage condition holds. The …

Read more

Module 37.3 LOS 37.c: Expected return on bond given transition in its credit rating

May 17, 2019 by CFA Study Guide
CFA Fixed Income

The change in price of a bond when it experiences a change in credit rating is dependent on the modified …

Read more

Module 34.1 LOS 34.b: Calculate forward and spot prices using the forward pricing and forward rate models

May 17, 2019 by CFA Study Guide
CFA Fixed Income

The forward pricing model states that two investors should be indifferent between paying P for a j+k year zero coupon, …

Read more

Module 34.1 LOS 34.c: Bootstrapping Spot Rates

May 17, 2019 by CFA Study Guide
CFA Fixed Income

We can derive spot rates from the par rate curve through a process called bootstrapping. Bootstrapping is in iterative process …

Read more

Module 37.1 LOS 37.a: Explain expected exposure, the loss given default, the probability of default, and the credit valuation adjustment

May 17, 2019 by CFA Study Guide
CFA Fixed Income

Expected exposure is the amount a investor stands to lose on risky bond before recovery amounts are taken into consideration. …

Read more

Module 30.5 LOS 30.f, 30.g, 30.i, 30.j 30.l: Firm valuation with FCFF and FCFE

May 17, 2019 by CFA Study Guide
CFA Equity

In free cash flow valuation models, we have a control perspective that assumers value recognition will be immediate. DDM models …

Read more

Older posts
Page1 Page2 … Page15 Next →

Quick Nav

  • The CFA Level III Series: Table of Contents
  • The CFA Level II Series: Table of Contents
  • The CFA Level I Series: Intro and Table of Contents

Word Map

active return active risk alternative investments ANOVA asset allocation behavioral finance business cycle capital account CFA cfa exam CFA level 1 cfa level I CFA Level II cfa level III confidence intervals convexity corporate finance covered call current account derivatives earnings quality Economics effective duration equity equity forecasting exchange rates financial reporting and analysis fiscal policy fixed income fundamental law grinold kroner information ratio Institutional Investors IPS IS level III macaulay duration Modified duration monetary policy money duration portfolio management private wealth management quantitative methods residual income Sharpe ratio
  • Privacy Policy
  • Terms
  • Contact
© 2025 CFA Study Guide • Built with GeneratePress