Candidate Body of Knowledge Topic Outline

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 Course of Study through our practice analysis. Learn more about our practice analysis process and updates to the curriculum.

CBOK Topic Areas

[01] I. Ethical and Professional Standards

A. Professional Standards of Practice

B. Ethical Practices

[02] II. Quantitative Methods

A. Time Value of Money

B. Probability

C. Probability Distributions and Descriptive Statistics

D. Sampling and Estimation

E. Hypothesis Testing

F. Correlation Analysis and Regression

G. Time-Series Analysis

H. Simulation Analysis

I. Technical Analysis

[03] III. Economics

A. Market Forces of Supply and Demand

B. The Firm and Industry Organization

C. Measuring National Income and Growth

D. Business Cycles

E. The Monetary System

F. Inflation

G. International Trade and Capital Flows

H. Currency Exchange Rates

I. Monetary and Fiscal Policy

J. Economic Growth and Development

K. Effects of Government Regulation

L. Impact of Economic Factors on Investment Markets

[04] IV. Financial Reporting and Analysis

A. Financial Reporting System (with an emphasis on IFRS)

B. Analysis of Principal Financial Statements

C. Financial Reporting Quality

D. Analysis of Inventories and Long-Lived Assets

E. Analysis of Taxes

F. Analysis of Debt

G. Analysis of Off-Balance-Sheet Assets and Liabilities

H. Analysis of Pensions, Stock Compensation, and Other Employee Benefits

I. Analysis of Inter-Corporate Investments

J. Analysis of Business Combinations

K. Analysis of Global Operations

L. Ratio and Financial Analysis

[05] V. Corporate Finance

A. Corporate Governance

B. Dividend Policy

C. Capital Investment Decisions

D. Business and Financial Risk

E. Capital Structure Decisions

F. Working Capital Management

G. Mergers and Acquisitions and Corporate Restructuring

[06] VI. Equity Investments

A. Types of Equity Securities and Their Characteristics

B. Equity Markets: Characteristics and Institutions

C. Equity Market Indexes and Benchmarks

D. Valuation of Individual Equity Securities

E. Fundamental Analysis (Sector, Industry, Company)

F. Equity Market Valuation and Return Analysis

G. Equity Portfolio Management Strategies

[07] VII. Fixed Income

A. Types of Fixed-Income Securities and Their Characteristics

B. Fixed-Income Markets: Characteristics & Institutions

C. Fixed Income Portfolio Benchmarks

D. Fixed-Income Valuation (Sector, Industry, Company) and Return Analysis

E. Term Structure Determination and Yield Spreads

F. Analysis of Interest Rate Risk

G. Analysis of Credit Risk

H. Valuing Bonds with Embedded Options

I. Structured Products

J. Fixed-Income Portfolio Management Strategies

[08] VIII. Derivatives

A. Types of Derivative Instruments and Their Characteristics

B. Forward Markets and Valuation of Forward Contracts

C. Futures Markets and Valuation of Futures Contracts

D. Options Markets and Valuation of Option Contracts

E. Swaps Markets and Valuation of Swap Contracts

F. Credit Derivatives Markets and Instruments

G. Uses of Derivatives in Portfolio Management

[09] IX. Alternative Investments

A. Types of Alternative Investments and Their Characteristics

B. Real Assets and Valuation

C. Real Estate Valuation

D. Investment Entities and Valuation

E. Private Equity/Venture Capital and Valuation

F. Hedge Fund Strategies and Valuation

G. Commodities

H. Asset Allocation to Alternative Investments

[10] X. Portfolio Management and Wealth Planning

A. The Investment Policy Statement

B. Modern Portfolio Management Concepts

C. Behavioral Finance

D. Environmental, Social, and Governance (ESG) Investing

E. Management of Individual/Family Investor Portfolios

F. Management of Institutional Investor Portfolios

G. Investment Manager Selection

H. Economic Analysis and Setting Capital Market Expectations

I. Tax Efficiency Strategies

J. Asset Allocation

K. Portfolio Construction and Revision

L. Risk Management

M. Execution of Portfolio Decisions (Trading)

N. Performance Evaluation

O. Presentation of Performance Results