Editing Chartered Financial Analyst (section)

==Curriculum==
{{Update section|date=May 2022}}
The [[curriculum]] for the CFA program is based on a Candidate Body of Knowledge established by the CFA Institute.<ref>{{cite web|url=http://www.cfainstitute.org/cfaprog/courseofstudy/topic.html|title=Topical Outline|publisher=Cfainstitute.org|access-date=2010-03-23|archive-url=https://web.archive.org/web/20071005132946/http://cfainstitute.org/cfaprog/courseofstudy/topic.html|archive-date=October 5, 2007}}</ref> The CFA curriculum is updated annually to reflect the latest best practices, with the extent of changes varying by year and level.<ref>{{Cite web |title=2025 CFA Curriculum Changes: Our Super Summary |url=https://300hours.com/cfa-curriculum-changes-2025/ |access-date=2024-12-26 |website=300hours.com |language=en-US}}</ref> The curriculum comprises, broadly, the topic areas below. There are three exams ("levels") that test the academic portion of the CFA program. All three levels emphasize the subject of ethics. The material differences among the exams are:
* The '''Level I''' study program emphasizes tools and inputs and includes an introduction to asset valuation, financial reporting and analysis, and portfolio-management techniques.
* The '''Level II''' study program emphasizes asset valuation and includes applications of the tools and inputs (including economics, financial reporting and analysis, and quantitative methods) in asset valuation.
* The '''Level III''' study program emphasizes portfolio management and includes descriptions of strategies for applying the tools, inputs, and asset valuation models to manage equity, fixed income, and derivative investments for individuals and institutions. Since 2025, CFA Institute has introduced a Core curriculum plus a choice of 3 [https://300hours.com/cfa-level-3-specialized-pathways/ elective options called Specialized Pathways]: Portfolio Management, Private Markets and Private Wealth.

[[File:2012 CFA Level 3 curriculum.jpg|thumb|right|2012 Level III CFA Program Curriculum]]

For exams from 2008 onward, candidates are automatically provided the curriculum readings from the CFA Institute at the time of registration for the exam. The curriculum is not provided separately in the absence of exam registration. If the student fails an exam and is allowed to retest in the same year, the CFA Institute offers a slight rebate and will not send the curriculum again (the curriculum changes only on an annual basis). If the student retests in a year other than the year of failure, he or she will receive the curriculum again, as it may have been changed. Study materials for the CFA exams are available from numerous commercial learning providers, although they are not officially endorsed. Various organizations (some officially accredited) also provide course-based preparation.<ref>{{cite web|url=http://www.cfainstitute.org/community/university/Pages/cfa_program_partners_overview.aspx |title=CFA List of Registered Curriculums and Educational Programs|publisher=Cfainstitute.org|access-date=2015-11-21}}</ref>
As of 2019, the  examination includes questions on [[artificial intelligence]], automated investment services, and mining unconventional sources of data.<ref>{{Cite news|url=https://www.reuters.com/article/us-investment-tech-cfa/cfa-exam-to-add-artificial-intelligence-big-data-questions-idUSKBN18J2R4|title=CFA exam to add artificial intelligence, 'big data' questions|date=2017-05-23|work=Reuters|access-date=2018-03-01}}</ref>

===Ethical and professional standards===
<!--  {| border="1" style="float:right; width:350px;"
|- valign="top"
|+'''The Code of Ethics'''
|
Members of CFA Institute, including charterholders and candidates for the CFA designation, must:
* Act with integrity, competence, diligence, respect, and in an ethical manner with the public, clients, prospective clients, employers, employees, colleagues in the investment profession, and other participants in the global capital markets.
* Place the integrity of the investment profession and the interests of clients above their own personal interests.
* Use reasonable care and exercise independent professional judgment when conducting investment analysis, making investment recommendations, taking investment actions, and engaging in other professional activities.
* Practice and encourage others to practice in a professional and ethical manner that will reflect credit on ourselves and the profession.
* Promote the integrity of, and uphold the rules governing, capital markets.
* Maintain and improve their professional competence and strive to maintain and improve the competence of other investment professionals.
|}-->
The ethics section is primarily concerned with compliance and reporting rules when managing an investor's money or when issuing research reports. Some rules pertain more generally to professional behavior (such as prohibitions against [[plagiarism]]); others specifically relate to the proper use of the designation for charter-holders and candidates. These rules are delineated in the "Standards of Professional Conduct", within the context of an overarching "Code of Ethics".<!-- ; see sidebar.-->

===Quantitative methods===
This topic area is dominated by [[statistics]]: the topics are fairly broad, covering [[probability theory]], hypothesis testing, (multi-variate) regression, and time-series analysis. Other topics include [[time value of money]]—incorporating basic valuation and yield and return calculations—[[Modern portfolio theory#Risk and expected return|portfolio-related calculations]], and technical analysis.<ref>{{cite web|url=https://www.cfainstitute.org/CFA%20Program%20Study%20Session/2017_L1_SS02.pdf|archive-url=https://web.archive.org/web/20170204170154/https://www.cfainstitute.org/CFA%20Program%20Study%20Session/2017_L1_SS02.pdf|url-status=dead|archive-date=February 4, 2017|title=2017 Level I CFA Program Curriculum|publisher=CFA Institute|access-date=2017-02-03}}</ref>
Recent additions, as mentioned above, are a survey of [[machine learning]] and [[big data]].<ref>Discussion is top down; see: [https://www.cfainstitute.org/-/media/documents/study-session/2020-l2-ss3.ashx  Kathleen DeRose and Christophe Le Lanno (2020). "Machine Learning"].</ref>

===Economics===
Both [[microeconomics]] and [[macroeconomics]] are covered, including international economics (mainly related to currency conversions and how they are affected by international interest rates and inflation). By Level III, the focus is on applying economic analysis to portfolio management and asset allocation.

===Financial statement analysis===
The curriculum includes [[financial statements|financial reporting]] topics ([[International Financial Reporting Standards]] and U.S. [[Generally Accepted Accounting Principles]]), and [[Financial ratio|ratio]] and [[financial statement analysis]]. Financial reporting and analysis of [[accountancy|accounting]] information is heavily tested at Levels I and II, but is not a significant part of Level III.<ref>{{Cite web|title=CFA Level 1 FRA: Our Cheat Sheet - 300Hours|url=https://300hours.com/cfa-level-1-fra-cheat-sheet/|access-date=2021-04-13|website=300hours.com|language=en-US}}</ref>

===Corporate finance===
The curriculum initially covers the major [[corporate finance]] topics: [[Capital budgeting|capital investment]] decisions, [[capital structure]] policy and implementation, and [[dividend policy]]; this builds on the accounting, economics, and statistics areas. It then extends to more advanced topics such as the analysis of [[mergers and acquisitions]], [[corporate governance]], and business and [[financial risk]].<ref>{{Cite web|title=Is the CFA Useful for Corporate Finance? - Kaplan Schweser|url=https://www.schweser.com/cfa/blog/career-information/cfa-charter-in-corporate-finance|access-date=2021-09-23|website=www.schweser.com}}</ref>

===Security analysis===
The curriculum includes coverage of global markets as well as analysis and [[Valuation (finance)|valuation of the various asset types]]: equity (stocks), [[fixed income]] (bonds), [[Derivative (finance)|derivatives]] (futures, forwards, options, and swaps), and [[alternative investment]]s (real estate, private equity, [[hedge fund]]s, and commodities). The Level I exam requires familiarity with these instruments. Level II focuses on [[Valuation (finance)|valuation]], employing the "tools" studied under quantitative methods, financial statement analysis, corporate finance, and economics. Level III centers on incorporating these instruments into portfolios.

====Equity and fixed income====
The curriculum for equity investments includes the functioning of the [[stock market]], [[Stock market index|indices]], [[stock valuation]], and industry analysis.
[[fixed income analysis|Fixed income topics]] similarly include the various [[Security (finance)#Debt|debt securities]], the [[Corporate bond#Risk analysis|risk associated with these]], and [[bond valuation|valuations]] and [[Yield spread#Yield spread analysis|yield spreads]].

====Derivatives====
The curriculum includes coverage of the fundamental framework of derivatives markets, derivatives valuations, and hedging and trading strategies involving derivatives, including [[Futures contract|futures]], [[Forward contract|forwards]], [[Swap (finance)|swaps]], and [[Option (finance)|options]]. The curriculum incorporates various [[Mathematical finance#Derivatives pricing: the Q world|pricing models and frameworks]], such as [[Black–Scholes|Black-Scholes]] and [[Binomial options pricing model|binomial option pricing]] (extending to coverage of [[Lattice model (finance)#Interest rate derivatives|interest rate trees]]), while coverage of the [[Stochastic calculus#Applications|underlying mathematics]] is conceptual as opposed to technical.

====Alternative investments====
The curriculum includes coverage of a range of topics in the alternative investment category. Topics include [[hedge fund]]s, [[private equity]], [[Real estate economics|real estate]], natural resources (particularly precious metals), infrastructure, and other alternative investments, including, as applicable, strategies, sub-categories, potential benefits and risks, fee structures, and due diligence.

===Portfolio management and wealth planning===
This section increases in importance with each of the three levels—it integrates and draws from the other topics, including ethics.
It includes:
(i) [[modern portfolio theory]] ([[efficient frontier]], [[capital asset pricing model]], etc.);
(ii) [[Investment management|investment practice]] (defining the [[investment policy]] for [[Investor#Types of investors|individual]] and [[institutional investor]]s, resultant [[asset allocation]], [[Order (exchange)|order execution]], and [[hedge (finance)|hedging]] using derivatives);
and (iii) [[Rate of return#Mutual fund and investment company returns|measurement of investment performance]].{{citation needed|date=November 2015}}