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Tag: CFA

Chartered Financial Analyst (CFA) is an international professional designation offered by CFA Institute (formerly known as AIMR) to financial analysts who complete a series of three examinations. To become a CFA Charterholder candidates must pass each of three six-hour exams, possess a bachelor’s degree (or equivalent, as assessed by CFA institute) and have 48 months of work experience in an investment decision-making position. CFA charterholders are also obligated to adhere to a strict Code of Ethics and Standards governing their professional conduct. (Wikipedia Jan 2010)

The investment profession:

A securities analyst’s greatest challenge

Lack of dedication has long been the bane of the security analyst.

The Crash of 2008 raised questions as to the competence of many who work in the profession of security analysis. There are dozens of schools providing professionals with training and certification in this field. However, know-how is not enough.

Commonsense and hard work can be more important than theoretical training and the ability to use the terminology.

This article discusses an endemic problem: Laziness.

Financial economic theory

CFAs reject the Efficient Market Hypothesis

On the road to Damascus ...

A recent poll of members of the British Chartered Financial Analyst Institute revealed that 77% of its members disagreed that investors acted rationally.

This implicit rejection of the Efficient Market Hypothesis has far reaching implications for the structure and management of capital markets, including Modern Portfolio Theory, the use of betas, the justification for index funds, and the M&M Theories.

Will the economists that proposed these theories return their Nobel prizes?

The Enron scandal

Jeff Skilling explains US corporate ethics

No right, no wrong compass

Unfortunately for society, Jeff Skilling of Enron told the truth according to tenets of moral relativism learned at the Harvard Business School and with McKinsey and Company, when, on being sentenced to decades in prison, he said, “That’s the way the game is played. You win some, you lose some.”

Skilling was a representative of corporate executives of his time. He did not work alone, nor was he an isolated ‘bad apple’.

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Crowd sourcing investment research

Free, easily available investment information is largely unexploited. This is because there is too much of it. Information, to be useful, must be processed. This processing has a time cost. This article describes how new technology allows securities research to evolve beyond the industrial techniques of the 20th century.
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US Politics

What is the future of private pension plans?

Between 1999 and 2002, US private pension funds lost US$ 1.2 trillion in value. It would almost seem that pension fund managers had been speculating with retirement money, attempting to beat each others' short-term performance statistics, with little interest in safeguarding the assets of plan beneficiaries. More ...

US equities

Do stocks offer protection against inflation?

There is a common belief that a managed, diversified portfolio of US common stocks provides protection against inflation. However, there is reason to question whether this protection currently exists.
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US Bonds

Bond demand exceeds supply for a decade

Over the decade, 1995-2004, the demand for US bonds of all types has surpassed new bond issues in eight of the last ten years. This is the reason that bond prices have held firm, even in 2003, when net new issues reached almost $1.8 trillion. More ...

World Economy

What Is ‘International Liquidity’?

It used to be that the term 'international liquidity' meant the relative amount of resources available to a nation's monetary authorities that could be used to settle a balance of payments deficit. In the days of the gold standard, this would mean access to gold that could be used to redeem a nation's currency held by foreigners. More ...

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2010-07-29 11:37