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BOOK 4- ALTERNATIVE INVESTMENTS AND FIXED INCOME Readings and Learning Outcome Statements .......................................................... 3 Study Session 13- Alternative Investments ............................................................ 9 Self-Test- Alternative Investments ..................................................................... 132 Study Session 14 - Fixed Income: Valuation Concepts .............................. .......... 136 Study Session 15- Fixed Income: Structured Securities ............................ .......... 227 Self-Test - Fixed Income .................................................................................... 307 Formulas ............................................................................................................ 310 Index ................................................................................................................. 315 SCHWESERNOTES™ 2013 CFA LEVEL II BOOK 4: ALTERNATNE INVESTMENTS AND FIXED INCOME ©20 12 Kaplan, Inc. All rights reserved. Published in 2012 by Kaplan Schweser. Printed in the United States of America. ISBN: 978-1-4277-4249-0 I 1-4277-4249-9 PPN: 3200-2852 ofsglobal copyright laws. Your assistance in pursuing potential violators of this law is greatly tappreciated. does not endorse,spromote, ireview, or warrant the accuracy of the products or services offered by Kaplan Certain materials contained within this text are the copyrighted property of CFA Institute. The following Materials, CFA Institute Standards of Professional Conduct,l and CFA Institute`s Global Investment gram duplication of these notes is a violation of global copyright laws and the CFA Institute Code of Ethics. Disclaimer: The Schweser Notes should be used in conjunction with the original readings as set forth by topics contained in the readingstreferenced by CFA Institute and istbelievedttolbe accurate. However, he READINGS AND LEARNING OUTCOME STATEMENTS READINGS The following material is a review of the Alternative Investments and Fixed Income principles designed to address the Learning outcome statements set forth by CFA Institute. STUDY SESSION 13 Reading Assignments Alternative Investments and Fixed Income, CPA Program Curriculum, Volume 5, Level II (CPA Institute, 2012) 38. Private Real Estate Investments 39: Publicly Traded Real Estate Securities 40. Private Equity Valuation 41. Investing in Hedge Funds: A Survey page 9 page 42 page 69 page 117 STUDY SESSION 14 Reading Assignments Alternative Investments and Fixed Income, CPA Program Curriculum, Volume 5, Level II (CPA Institute, 2012) 42. Fundamentals of Credit Analysis 43. Term Structure and Volatility of Interest Rates 44. Valuing Bonds with Embedded Options STUDY SESSION 15 Reading Assignments Alternative Investments and Fixed Income, CPA Program Curriculum, Volume 5, Level II (CPA Institute, 2012) 45. Mortgage-Backed Sector of the Bond Market 46. Asset-Backed Sector of the Bond Market 47. Valuing Mortgage-Backed and Asset-Backed Securities ©20 12 Kaplan, Inc. page 136 page 165 page 192 page 227 page 258 page 283 Page 3 Book 4 - Alternative Investments and Fixed Income Readings and Learning Outcome Statements LERNING OUTCOME STATEMENTS (LOS) The CPA Institute Learning Outcome Statements are listed below. These are repeated in each topic review; however, the order may have been changed in order to get a better fit with the flow of the review. STUDY SESSION 13 The topical coverage corresponds with the following CPA Institute assigned reading: 38. Private Real Estate Investments The candidate should be able to: a. classify and describe basic forms of real estate investments. (page 9) b. describe the characteristics, the classification, and basic segments of real estate. (page 10) c. explain the role in a portfolio, the major economic value determinants, investment characteristics, and principal risks of private real estate. (page 12) d. describe commercial property types, including their distinctive investment characteristics. (page 14) e. compare the income, cost, and sales comparison approaches to valuing real estate properties. (page 15) f. estimate and interpret the inputs (for example, net operating income, capitalization rate, and discount rate) to the direct capitalization and discounted cash flow valuation methods. (page 17) g. calculate the value of a property using the direct capitalization and discounted cash flow methods. (page 17) h. compare the direct capitalization and discounted cash flow methods. (page 25) 1. calculate the value of a property using the cost and sales comparison approaches. (page 26) J. describe due diligence in private equity real estate investment. (page 31) k. discuss private equity real estate investment indices, including their construction and potential biases. (page 31) 1. explain the role in a portfolio, the major economic value determinants, investment characteristics, principal risks, and due diligence of private real estate debt investment. (page 12) m. calculate and interpret financial ratios used to analyze and evaluate private real estate investments. (page 32) The topical coverage corresponds with the following CPA Institute assigned reading: 39. Publicly Traded Real Estate Securities The candidate should be able to: a. describe types of publicly traded real estate securities. (page 42) b. explain advantages and disadvantages of investing in real estate through publicly traded securities. (page 43) c. explain economic value determinants, investment characteristics, principal risks, and due diligence considerations for real estate investment trust (REIT) shares. (page 45) d. describe types of REITs. (page 47) e. justify the use of net asset value per share (NAVPS) in REIT valuation and estimate NAVPS based on forecasted cash net operating income. (page 51) Page 4 ©2012 Kaplan, Inc. ... - tailieumienphi.vn
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