Browse CFA Level 1

Chapter 12: Equity Strategies for Portfolios

Chapter 12: Equity Strategies for Portfolios (CFA Level 1): Key concepts, definitions, and exam tips with practical examples. Use it to reinforce intuition and avoid common pitfalls.

In this section

  • Active, Passive, and Factor-Based Equity Investments
    Active, Passive, and Factor-Based Equity Investments (CFA Level 1): Core Concepts of Equity Investment Approaches, Active Management, and Passive Management. Key definitions, formulas, and exam tips.
  • Fundamental and Quantitative Approaches
    Fundamental and Quantitative Approaches (CFA Level 1): Key Differences Between Fundamental and Quantitative Analysis, Fundamental Analysis Process, and Industry and Economic Analysis. Key definitions, formulas, and exam tips.
  • Sector and Style Allocations
    Sector and Style Allocations (CFA Level 1): Sector Classification Systems, Major Equity Styles: Growth, Value, and Blend, and Growth Investing. Key definitions, formulas, and exam tips.
  • Portfolio Construction with Enhanced Indexing
    Portfolio Construction with Enhanced Indexing (CFA Level 1): Key Elements of Enhanced Indexing, Implementation Approaches, and Partial Replication (Sampling). Key definitions, formulas, and exam tips.
  • Risk Management in Equity-Focused Portfolios
    Risk Management in Equity-Focused Portfolios (CFA Level 1): Key Risk Measures for Equity Portfolios, Volatility (Standard Deviation), and Value at Risk (VaR). Key definitions, formulas, and exam tips.
  • Long-Short Equity and Market-Neutral Strategies
    Long-Short Equity and Market-Neutral Strategies (CFA Level 1): Traditional Long-Only vs. Long-Short Equity Strategies, Basic Comparison Table, and Mechanics of Short Selling. Key definitions, formulas, and exam tips.
  • Screening and Investment Style Definitions
    Screening and Investment Style Definitions (CFA Level 1): Understanding Stock Screening, Rationale Behind Fundamental Screens, and Incorporating Technical Indicators. Key definitions, formulas, and exam tips.
  • Corporate Governance Monitoring in Equity Investments
    Corporate Governance Monitoring in Equity Investments (CFA Level 1): Corporate Governance: The Big Picture, Key Factors in Governance Reviews, and Linking Governance to Performance and Risk. Key definitions, formulas, and exam tips.
  • Smart Beta Concepts in Equity Allocation
    Smart Beta Concepts in Equity Allocation (CFA Level 1): Understanding Smart Beta, Rules-Based Strategy, and Common Weighting Schemes. Key definitions, formulas, and exam tips.
  • Multi-Alpha Equity Strategies
    Multi-Alpha Equity Strategies (CFA Level 1): Defining Multi-Alpha Equity Strategies, Rationale and Benefits of Combining Multiple Alphas, and Key Considerations: Correlation Management and Diversification. Key definitions, formulas, and exam tips.
  • Rotation Strategies Across Sectors and Styles
    Rotation Strategies Across Sectors and Styles (CFA Level 1): Rotation Strategies: Foundation, Sector Rotation, and Style Rotation. Key definitions, formulas, and exam tips.
  • The Role of High-Frequency Trading
    The Role of High-Frequency Trading (CFA Level 1): Defining High-Frequency Trading, Market Liquidity Influence, and Simple Visual of HFT Order Flow. Key definitions, formulas, and exam tips.
  • ESG Data Integration in Equity Analysis
    ESG Data Integration in Equity Analysis (CFA Level 1): How do ESG data providers differ from each, In a discounted cash flow model, how might, and What is the primary reason to scrutinize ESG. Key definitions, formulas, and exam tips.
  • Approaches to Minimizing Tracking Error
    Approaches to Minimizing Tracking Error (CFA Level 1): Minimizing Tracking Error: Core Concepts and Techniques, Understanding Tracking Error, and Full Replication: The “No Surprises” Approach. Key definitions, formulas, and exam tips.
  • Hedging Equity Portfolios with Derivatives
    Hedging Equity Portfolios with Derivatives (CFA Level 1): Role of Derivatives in Equity Portfolio Hedging, Common Derivative Instruments, and Protective Puts for Downside Protection. Key definitions, formulas, and exam tips.
  • Evaluating Equity Portfolio Performance Attributions
    Evaluating Equity Portfolio Performance Attributions (CFA Level 1): Understanding Performance Attribution, Brinson–Hood–Beebower (Brinson) Model, and Quick Formulaic View. Key definitions, formulas, and exam tips.

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