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2020 Candidate Body of Knowledge (CBOK)

The Candidate Body Of Knowledge (CBOK) represents the core knowledge, skills, and abilities generally accepted and applied by investment professionals globally.

The CBOK is grounded in practice, meaning that panels and surveys of thousands of investment professionals have had input into the curriculum through our practice analysis.

CBOK Topic Areas

I. Ethical and Professional Standards

  1. Professional Standards of Practice
  2. Ethical Practices

II. Quantitative Methods

  1. Time Value of Money
  2. Probability
  3. Probability Distributions and Descriptive Statistics
  4. Sampling and Estimation
  5. Hypothesis Testing
  6. Correlation Analysis and Regression
  7. Time-Series Analysis
  8. Simulation Analysis

III. Economics

  1. Market Forces of Supply and Demand
  2. The Firm and Industry Organization
  3. Measuring National Income and Growth
  4. Business Cycles
  5. The Monetary System
  6. Inflation
  7. International Trade and Capital Flows
  8. Currency Exchange Rates
  9. Monetary and Fiscal Policy
  10. Economic Growth and Development
  11. Effects of Government Regulation
  12. Impact of Economic Factors on Investment Markets

IV. Financial Reporting and Analysis

  1. Financial Reporting System (with an emphasis on IFRS)
  2. Analysis of Principal Financial Statements
  3. Financial Reporting Quality
  4. Analysis of Inventories and Long-Lived Assets
  5. Analysis of Taxes
  6. Analysis of Debt
  7. Analysis of Off-Balance-Sheet Assets and Liabilities
  8. Analysis of Pensions, Stock Compensation, and Other Employee Benefits
  9. Analysis of Inter-Corporate Investments
  10. Analysis of Business Combinations
  11. Analysis of Global Operations
  12. Ratio and Financial Analysis

V. Corporate Finance

  1. Corporate Governance
  2. Dividend Policy
  3. Capital Investment Decisions
  4. Business and Financial Risk
  5. Capital Structure Decisions
  6. Working Capital Management
  7. Mergers and Acquisitions and Corporate Restructuring

VI. Equity Investments

  1. Types of Equity Securities and Their Characteristics
  2. Equity Markets: Characteristics and Institutions
  3. Valuation of Individual Equity Securities
  4. Fundamental Analysis (Sector, Industry, Company)
  5. Equity Market Valuation and Return Analysis
  6. Equity Portfolio Management Strategies

VII. Fixed Income

  1. Types of Fixed-Income Securities and Their Characteristics
  2. Fixed-Income Markets: Characteristics & Institutions
  3. Fixed-Income Valuation (Sector, Industry, Company) and Return Analysis
  4. Term Structure Determination and Yield Spreads
  5. Analysis of Interest Rate Risk
  6. Analysis of Credit Risk
  7. Valuing Bonds with Embedded Options
  8. Structured Products
  9. Fixed-Income Portfolio Management Strategies

VIII. Derivatives

  1. Types of Derivative Instruments and Their Characteristics
  2. Markets and Valuation of Forwards and Futures Contracts
  3. Options Markets and Valuation of Option Contracts
  4. Swaps Markets and Valuation of Swap Contracts
  5. Credit Derivatives Markets and Instruments
  6. Uses of Derivatives in Portfolio Management

IX. Alternative Investments

  1. Types of Alternative Investments and Their Characteristics
  2. Real Estate
  3. Real Assets
  4. Private Equity/Venture Capital
  5. Hedge Fund Strategies
  6. Commodities
  7. Asset Allocation to Alternative Investments

X. Portfolio Management and Wealth Planning

  1. The Investment Policy Statement
  2. Modern Portfolio Management Concepts
  3. Investment Vehicles
  4. Behavioral Finance
  5. Technical Analysis
  6. Environmental, Social, and Governance (ESG) Investing
  7. Management of Individual/Family Investor Portfolios
  8. Management of Institutional Investor Portfolios
  9. Investment Manager Selection
  10. Economic Analysis and Setting Capital Market Expectations
  11. Tax Impact of Investment Decisions
  12. Asset Allocation
  13. Portfolio Construction and Revision
  14. Risk Management
  15. Market Indexes
  16. Execution of Portfolio Decisions (Trading)
  17. Performance Evaluation
  18. Presentation of Performance Results