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Notices

Candidate Body of Knowledge (CBOK)

The CBOK represents the core knowledge, skills, and abilities (competencies) generally accepted and applied by investment professionals globally. Explore the core competencies that shape the CFA® Program curriculum.
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What is the CFA® Program CBOK?

The CFA Program curriculum adapts to the evolving needs of the investment profession. The CBOK is grounded in practice as the output of panels and surveys of thousands of investment professionals serves as input into the curriculum through our practice analysis process.

Level I, II and III CBOK topic areas

    I. Ethical and Professional Standards

    1. Professional Standards of Practice
    2. Ethical Practices
    3. Asset Manager Code of Professional Standards

    II. Quantitative Methods

    1. Time Value of Money
    2. Probability Distributions and Concepts
    3. Sampling, Estimation and Bias
    4. Regression Analysis
    5. Time-Series Analysis and Forecasting
    6. Volatility Models
    7. Model Governance: Backtesting, Validation, Monitoring of Performance
    8. Simulation and Scenario Analysis
    9. Big Data, Machine Learning, and Artificial Intelligence (AI)
    10. Generative AI and Large Language Models (LLMs)

    III. Economics

    1. Market Forces of Supply and Demand
    2. The Firm and Industry Organization
    3. Business Cycles
    4. Inflation and Deflation
    5. International Trade and Capital Flows
    6. Currency Exchange Rates
    7. Monetary System, Monetary and Fiscal Policy
    8. Economic Growth and Development
    9. Effects of Regulations
    10. Economic Analysis and Setting Capital Market Expectations
    11. Effects of Geopolitics on Economies and Investment Markets
    12. Applications of Economic Indicators in the Investment Process

    IV. Financial Statement Analysis

    1. Analysis of Financial Statements
    2. Financial Reporting Quality
    3. Analysis of Off-Balance-Sheet Assets and Liabilities
    4. Analysis of Stock Compensation and Other Employee Benefits
    5. Analysis of Inter-Corporate Investments  and Business Combinations
    6. Analysis of Global Operations
    7. Building a Company Financial Model
    8. Ratio and Financial Analysis
    9. Financial Analysis of Banks and Insurance Companies
    10. Sustainability considerations in Financial Statement Analysis

    V. Corporate Finance

    1. Corporate Structures and Strategies
    2. Corporate Ownerships and Governance
    3. Risk Factors (including environmental and social)
    4. Corporate Financing Decisions
    5. Corporate Actions, Combinations, and Restructuring

    VI. Equities

    1. Types of Equity Securities and Markets
    2. Fundamental Equity Analysis
    3. Valuation of Individual Equity Securities
    4. Equity Market Valuation
    5. Shorting Equity Securities
    6. Sustainability considerations in Equity Investments

    VII. Fixed Income

    1. Types of Fixed Income Securities and Markets
    2. Fundamental Fixed Income Analysis
    3. Term Structure Determination and Yield Spreads
    4. Valuation of Individual Fixed Income Securities
    5. Analysis of Interest Rate Risk
    6. Analysis of Credit Risk
    7. Valuing Bonds with Embedded Options
    8. Structured Products
    9. Shorting Fixed Income Securities
    10. Sustainability considerations in Fixed Income

    VIII. Derivatives and Risk Management

    1. Types of Derivative Instruments and Markets
    2. Valuation of Forwards and Futures Contracts
    3. Valuation of Option Contracts
    4. Valuation of Swap Contracts
    5. Uses of Derivatives in Portfolio Management
    6. Currency Hedging
    7. Currency Management
    8. Risk Management

    IX. Alternative Investments

    1. Types of Alternative Investments
    2. Real Estate
    3. Real Assets (including Infrastructure, Timber and Farm Land)
    4. Private Capital (including Private Equity, Private Credit and Venture Capital)
    5. Hedge Funds
    6. Commodities
    7. Digital Assets
    8. Shorting Alternative Investments
    9. Sustainability considerations in Alternative Investments

    X. Portfolio Construction

    1. The Investment Policy Statement
    2. Modern Portfolio Management Concepts
    3. Investment Vehicles (including ETFs and Mutual Funds)
    4. Market Efficiency and Indexed Investing
    5. Market Indexes
    6. Behavioral Finance
    7. Sustainability considerations in Portfolio Construction
    8. Management of Individual/Family Investor Portfolios
    9. Tax Impact of Investment Decisions
    10. Management of Institutional Investor Portfolios
    11. Portfolio Construction and Revision
    12. Currency Management
    13. Equity Portfolio Management
    14. Fixed Income Portfolio Management
    15. Alternative Investments Portfolio Management
    16. Liability – Driven Investments (including Asset Liability Management and Goals-Based
      Investing)
    17. Risk Management
    18. Analysis of Market Technicals: Microstructure, Behavioral Finance, and Technical Analysis.
    19. Execution of Portfolio Decisions
    20. Shorting Securities: Mechanism, Risk/Return profile, and other considerations

    XI. Asset Allocation

    1. Economic Analysis and Setting Capital Market Expectations
    2. Asset Allocation (Strategic AA and Tactical AA)
    3. Liability – Driven Investments (including Asset Liability Management and Goals-Based
      Investing)

    XII. Performance Measurement

    1. Performance Attribution and Appraisal
    2. Presentation of Performance Results (GIPS)
    3. Investment Manager Selection
    4. Execution of Portfolio Decisions (including Trading and Market Microstructure)

    Pathways

      Portfolio Management Pathway

      1. Index Investing
      2. Fixed Income Portfolio Management
      3. Equity Portfolio Management
      4. Execution of Portfolio Decisions (including Trading and Market Microstructure)
      5. Management of Institutional Investor Portfolios
      6. Liability - Driven Investments (including Asset Liability Management and Goal-Based investing)
      7. Long/Short Portfolio Management

      Private Markets Pathway

      1. Deal Origination, Screening, Analysis, and Valuation
      2. Deal Structuring, Financing, and Negotiation
      3. Management of Assets, Execution of Value Creation Strategies, and Exit Strategies
      4. Fund Vehicles, Agreements, and Structures
      5. Capital Flows: Raising Capital, Distributing Returns, and Collecting Fees/Carried Interest
      6. Private Asset Classes: Market Context, Investment Strategies and Investment Process
      7. Measures of Fund Level Returns and Performance at Portfolio Company Level

      Private Wealth Pathway

      1. Private Wealth Management Industry
      2. Client Management
      3. Wealth Planning
      4. Investment Management
      5. HNW Client Profiling & Asset Allocation

      Topic weights as of 2027 curriculum

      Topic

      Level I

      Level II

      Level III
      Ethical and Professional Standards

      10–15%

      10–15%

      10–15%
      Quantitative Methods

      11–14%

      5–10%

      n/a
      Economics

      6–9%

      5–10%

      n/a
      Financial Statement Analysis

      11–14%

      10-15%

      n/a
      Corporate Finance

      6–9%

      5–10%

      n/a
      Equities

      11–14%

      10-15%

      n/a
      Fixed Income

      11–14%

      10-15%

      n/a
      Derivatives and Risk Management

      6–9%

      5–10%

      10-15%
      Alternative Investments

      6–9%

      5–10

      n/a
      Portfolio Construction

      8-12%

      10-15%

      15-20%
      Asset Allocation

      n/a

      n/a

      15-20%
      Performance Measurement

      n/a

      n/a

      5–10%
      Choice of Pathway

      n/a

      n/a

      30-35%
      TOTAL

      100%

      100%

      100%

      CBOK FAQs

        Why are ethical and professional standards in the CFA Program CBOK?

        Ethical and professional standards are emphasized because trust, integrity, and professionalism are foundational to effective investment practice and are essential to maintaining confidence in global financial markets.

        How do ethical and professional standards influence the CFA Program curriculum?

        Ethical and professional standards inform the application of technical knowledge in real-world situations and are integrated throughout the CFA Program curriculum to reflect professional responsibilities.

        Are ethical and professional standards relevant across all levels of the CFA Program?

        Yes. Ethical and professional standards are relevant at every level of the CFA Program and are reinforced as candidates progress through increasingly complex investment scenarios.

        How does CFA Institute ensure ethical standards reflect current industry practice?

        CFA Institute uses a practice analysis process that incorporates feedback from thousands of investment professionals worldwide to ensure ethical and professional standards remain relevant and applicable.

        How should CFA Program candidates use the CBOK when preparing for ethics-related topics?

        CFA Program candidates can use the CBOK as a framework to understand the knowledge and professional competencies that underpin ethics-related content in the curriculum and assessments.

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