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Study app for Level I of the CFA® Program

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2,920 questions, 437 concepts, 149 interactive charts. The first five Readings are free.

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Free area Reading 1 · Yields & Return Measurement

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A bank quotes a stated annual rate of 12%, compounded 4 times a year. The effective annual rate implied is closest to:

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CorrectC · 12.55%

  1. Divide the stated rate by the number of compounding periods.

    rsm\frac{r_s}{m}

    The periodic rate, not the annual one, is what compounds.

  2. Compound that periodic rate m times and subtract 1.

    EAR=(1+rsm)m−1EAR = \left(1 + \frac{r_s}{m}\right)^{m} - 1

    More frequent compounding always raises the effective rate.

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Titles are in English, as in the app.

63 concepts build on the question’s concept

Quantitative Methods 11 Readings · 57 concepts

Reading 1 Yields & Return Measurement

  1. Required Rates of Return and Risk-Free Rates
  2. Risk Premia and Inflation
  3. Return Measures and Their Comparison
  4. Money-Weighted vs Time-Weighted Returns
  5. The question’s concept: Annualised and Continuously Compounded Returns
  6. Gross, Net, Real and Leveraged Returns

Reading 2 Valuation & Cash Flow Additivity

  1. Builds on it, step 1: Present Value of Fixed-Income Instruments
  2. Builds on it, step 2: Present Value of Equity Instruments
  3. Builds on it, step 2: Implied Return on Fixed-Income Instruments
  4. Builds on it, step 3: Required Return and Implied Growth for Equity
  5. Builds on it, step 2: Cash Flow Additivity and No-Arbitrage
  6. Builds on it, step 3: Applications of Cash Flow Additivity

Reading 3 Statistical Distribution Measures

  1. Measures of Central Tendency
  2. Measures of Location
  3. Measures of Dispersion
  4. Skewness
  5. Kurtosis
  6. Covariance and Correlation

Reading 4 Probability Theory & Expectations

  1. Unconditional Expected Values
  2. Probability Tree Formulation
  3. Conditional Expectations, Variances and Covariances
  4. Bayesian Updating

Reading 5 Portfolio Risk & Return Metrics

  1. Portfolio Expected Return, Variance and Standard Deviation
  2. Portfolio Covariance and Correlation
  3. Joint Probability Function Approach
  4. Shortfall Risk & the Safety-First Ratio
  5. Roy’s Safety-First Criterion

Reading 6 Simulation & Distribution Models

  1. Normal and Lognormal Distributions
  2. Builds on it, step 1: Lognormal Modelling of Asset Prices
  3. Monte Carlo Simulation
  4. Bootstrap Resampling

Reading 7 Sampling Techniques & Theory

  1. Sampling Methodologies
  2. Non-Probability Sampling Methods
  3. Sampling Error Implications
  4. Central Limit Theorem
  5. Sampling Error and the Standard Error of the Mean
  6. Resampling: Bootstrap & Jackknife

Reading 8 Hypothesis Testing Frameworks

  1. Components of a Hypothesis Test
  2. Significance, Type I and Type II Errors, and Power
  3. Test Construction and Interpretation
  4. Parametric vs Non-Parametric Tests

Reading 9 Correlation & Independence Testing

  1. Parametric Test of Zero Correlation
  2. Nonparametric Test of Zero Correlation
  3. Contingency Table Tests of Independence

Reading 10 Linear Regression Analysis

  1. Model Specification and Least Squares
  2. Coefficient Interpretation
  3. Assumptions of the Model
  4. Residual Diagnostics
  5. Measures of Fit
  6. Tests of Fit & of Coefficients
  7. ANOVA in Regression
  8. Prediction and Prediction Intervals
  9. Functional Forms

Reading 11 Financial Technology & Big Data

  1. Fintech Relevant to Financial Data
  2. Big Data Characteristics
  3. Artificial Intelligence and Machine Learning
  4. Financial Data Science, Fintech and Investment Applications
Economics 8 Readings · 44 concepts

Reading 12 Production Costs & Market Structures

  1. Breakeven & Shutdown Points
  2. Economies & Diseconomies of Scale
  3. Characteristics of Market Structures
  4. Monopolistic Competition: Price & Output
  5. Oligopoly: Price & Output
  6. Market Structure Identification & Concentration Measures

Reading 13 Business & Credit Cycles

  1. Business Cycle Phases
  2. Credit Cycles
  3. Resource Use & Business Activity Over the Cycle
  4. Housing & External Trade Sectors Over the Cycle
  5. Economic Indicators

Reading 14 Fiscal Frameworks

  1. Fiscal vs Monetary Policy
  2. Roles & Objectives of Fiscal Policy
  3. National Debt-to-GDP Debate
  4. Tools of Fiscal Policy
  5. Implementation & Policy Stance

Reading 15 Monetary Mechanisms

  1. Roles & Objectives of Central Banks
  2. Monetary Policy Tools
  3. Monetary Transmission Mechanism
  4. Effects on Growth, Inflation, Rates & Currency
  5. Qualities of Effective Central Banks
  6. Targeting Regimes
  7. Limitations of Monetary Policy
  8. Interaction of Monetary & Fiscal Policy

Reading 16 Geopolitical Dynamics

  1. Cooperation vs Competition Framework
  2. Geopolitics & Globalization
  3. International Organizations
  4. Geopolitical Risk
  5. Tools of Geopolitics
  6. Geopolitical Risk and Portfolio Outcomes

Reading 17 Global Trade Networks

  1. Benefits & Costs of International Trade
  2. Types of Trade Restrictions
  3. Economic Implications of Restrictions
  4. Trading Blocs, Common Markets & Economic Unions

Reading 18 Currency Markets & Capital Flows

  1. FX Market Functions & Participants
  2. Nominal vs Real Exchange Rates
  3. Percentage Change in Currency Values
  4. Exchange Rate Regimes
  5. Exchange Rate Effects on Trade & Capital Flows
  6. Objectives of Capital Restrictions

Reading 19 Advanced FX Calculations

  1. Currency Cross-Rates
  2. Builds on it, step 3: Spot-Forward-Interest Rate Arbitrage
  3. Builds on it, step 4: Forward Rate Calculation
  4. Builds on it, step 5: Forward Premium & Discount
Corporate Issuers 7 Readings · 24 concepts

Reading 20 Business Structures

  1. Organizational Forms of Business
  2. Key Features of Corporate Issuers
  3. Public vs Private Corporate Issuers

Reading 21 Stakeholder Dynamics & ESG Integration

  1. Financial Claims of Lenders vs Shareholders
  2. Stakeholder Groups & Their Interests
  3. ESG Factors in Issuer Assessment

Reading 22 Agency Conflicts & Governance Frameworks

  1. Principal-Agent Relationship & Conflicts
  2. Governance Mechanisms
  3. Risks of Poor Governance
  4. Benefits of Effective Governance

Reading 23 Liquidity & Working Capital

  1. Cash Conversion Cycle
  2. Liquidity Measurement & Comparison
  3. Working Capital & Liquidity Management

Reading 24 Capital Allocation

  1. Types of Capital Investments
  2. Capital Allocation Process
  3. Builds on it, step 2: NPV, IRR & ROIC
  4. Builds on it, step 3: Principles & Pitfalls of Capital Allocation
  5. Builds on it, step 4: Real Options

Reading 25 Capital Structure & Cost of Capital

  1. Weighted-Average Cost of Capital
  2. Factors Affecting Capital Structure & WACC
  3. Modigliani-Miller Propositions
  4. Optimal vs Target Capital Structure

Reading 26 Enterprise Models

  1. Key Features of Business Models
  2. Types of Business Models
Financial Statement Analysis 12 Readings · 68 concepts

Reading 27 Analytical Framework & Information Sources

  1. Financial Statement Analysis Framework
  2. Roles of Financial Statement Analysis
  3. Regulatory Filings & Statement Notes
  4. Management Commentary & Audit Reports
  5. Alternative Financial Reporting Systems
  6. Monitoring Reporting Standards Developments
  7. Other Information Sources

Reading 28 Income Statement Analysis

  1. Revenue Recognition Principles & Applications
  2. Analytical Implications of Revenue Recognition Choices
  3. Expense Recognition Principles & Applications
  4. Capitalisation vs Expensing
  5. Non-Recurring Items & Accounting Policy Changes
  6. Basic & Diluted Earnings per Share
  7. Antidilutive Securities
  8. Common-Size Income Statements & Ratios

Reading 29 Balance Sheet Analysis

  1. Intangible Assets Reporting & Disclosure
  2. Goodwill Reporting & Disclosure
  3. Financial Instruments Reporting & Disclosure
  4. Non-Current Liabilities Reporting & Disclosure
  5. Common-Size Balance Sheets & Ratios

Reading 30 Cash Flow Statement Construction

  1. Linkage Across the Three Statements
  2. Direct-Method Preparation
  3. Indirect-Method Preparation
  4. Indirect-to-Direct Conversion
  5. IFRS vs US GAAP Presentation

Reading 31 Cash Flow Statement Interpretation

  1. Reported & Common-Size Cash Flow Analysis
  2. Firm and Equity Free Cash Flows (FCFF & FCFE)
  3. Cash Flow Performance & Coverage Ratios

Reading 32 Inventory Accounting

  1. Inventory Write-Downs to Net Realisable Value
  2. Inventory Valuation Under Changing Prices
  3. Inventory Presentation & Disclosure
  4. Analytical Issues in Inventory Disclosure

Reading 33 Long-Lived Asset Reporting

  1. Intangible Assets by Origin
  2. Impairment & Derecognition Effects
  3. Long-Lived Asset Disclosures

Reading 34 Leases, Pensions & Share-Based Pay

  1. Lease Reporting: Lessee Perspective
  2. Lease Reporting: Lessor Perspective
  3. Defined Contribution vs Defined Benefit Plans
  4. Stock-Based Compensation
  5. Presentation & Disclosure of Long-Term Obligations

Reading 35 Income Tax Analysis

  1. Accounting Profit vs Taxable Income
  2. Temporary vs Permanent Differences
  3. Deferred Tax Assets & Liabilities
  4. Effective, Statutory & Cash Tax Rates
  5. Deferred Tax Disclosures & Rate Reconciliation

Reading 36 Reporting Quality & Earnings Manipulation

  1. Reporting Quality vs Results Quality
  2. Quality Assessment Spectrum
  3. Conservative vs Aggressive Accounting
  4. Motivations & Conditions for Low-Quality Reporting
  5. Disciplinary Mechanisms & Their Limits
  6. Presentation Choices & Non-GAAP Measures
  7. Earnings & Cash Flow Management Methods
  8. Warning Signs & Detection of Manipulation

Reading 37 Ratio Analysis & Forecasting Techniques

  1. Tools & Techniques of Financial Analysis
  2. Activity Ratios
  3. Liquidity Ratios
  4. Solvency Ratios
  5. Profitability Ratios
  6. Ratio Interrelationships & Company Evaluation
  7. DuPont Decomposition of Return on Equity
  8. Industry-Specific Ratios
  9. Ratio-Based Earnings Modelling

Reading 38 Pro Forma Modeling & Forecast Horizons

  1. Sales-Based Pro Forma Model
  2. Behavioural Factors in Analyst Forecasts
  3. Remedies for Analyst Bias
  4. Porter’s Five Forces & Competitive Position
  5. Forecasting Under Inflation & Deflation
  6. Forecast Horizon & Terminal Projections
Equity Investments 8 Readings · 71 concepts

Reading 39 Market Organization & Trading Mechanics

  1. Functions of the Financial System
  2. Classification of Assets & Markets
  3. Securities, Currencies & Contracts Traded
  4. Commodities & Real Assets
  5. Financial Intermediaries & Their Services
  6. Investor Positions in an Asset
  7. Leverage Ratio & Margin Transaction Returns
  8. Margin Calls
  9. Execution, Validity & Clearing Instructions
  10. Market Orders vs Limit Orders
  11. Primary and Secondary Public Equity Markets
  12. Quote-Driven, Order-Driven & Brokered Markets
  13. What Makes a Financial System Work Well
  14. Objectives of Market Regulation

Reading 40 Index Construction & Management

  1. Definition of a Security Market Index
  2. Index Value and Return Calculation
  3. Index Construction & Management Choices
  4. Index Weighting Methods and Construction Choices
  5. Value & Return Under Alternative Weightings
  6. Rebalancing & Reconstitution
  7. Uses of Security Market Indexes
  8. Equity Index Types
  9. Comparison of Index Categories
  10. Fixed-Income Index Types
  11. Alternative Investment Indexes

Reading 41 Market Efficiency & Anomalies

  1. Market Efficiency Concepts
  2. Price vs Value for an Equity Security
  3. Factors Affecting Market Efficiency
  4. Forms of Market Efficiency
  5. Implications for Analysis & Portfolio Management
  6. Market Anomalies
  7. Behavioural Finance & Anomalies

Reading 42 Equity Security Characteristics

  1. Types and Characteristics of Equity Instruments
  2. Economic and Voting Rights Across Jurisdictions and Classes
  3. Publicly Listed vs Private Equity Securities
  4. Investing in Non-Domestic Equity
  5. Risk & Return Characteristics by Type
  6. Role of Equity in Financing Assets
  7. Book Value, Market Capitalisation and Enterprise Value
  8. CAPM and Market Model for Required Return

Reading 43 Historical Company Analysis

  1. Elements of a Company Research Report
  2. Determining the Business Model
  3. Revenue Drivers and Pricing Power
  4. Operating Profitability and Working Capital
  5. Capital Investments and Capital Structure

Reading 44 Industry & Competitive Positioning

  1. Purpose and Steps of Industry Analysis
  2. Industry Classification and Company Grouping
  3. Industry Size, Growth and Profitability
  4. Porter’s Five Forces
  5. PESTLE Analysis
  6. Competitive Strategy and Positioning

Reading 45 Forward-Looking Company Analysis

  1. Rationale and Construction of Forecast Models
  2. Revenue Forecasting
  3. Operating Expense & Working Capital Forecasting
  4. Capital Investment & Capital Structure Forecasting
  5. Scenario Analysis in Forecasting

Reading 46 Valuation Models & Multiples

  1. Valuation Judgement Against Market Price
  2. Categories of Equity Valuation Models
  3. Dividends, Repurchases, Splits and Reverse Splits
  4. Dividend Payment Chronology
  5. Builds on it, step 3: Rationale for Present Value Models
  6. Builds on it, step 4: Dividend Discount Model Inputs
  7. Builds on it, step 4: Free Cash Flow Model Inputs
  8. Builds on it, step 5: Advantages and Disadvantages of Model Categories
  9. Builds on it, step 5: Preferred Stock Value and Contingency Features
  10. Builds on it, step 4: Constant and Multistage Growth Valuation
  11. Builds on it, step 5: Model Suitability by Company Characteristics
  12. Comparables and Forecasted Fundamentals
  13. Price Multiples
  14. Enterprise Value Multiples
  15. Asset-Based Valuation Models
Fixed Income 19 Readings · 61 concepts

Reading 47 Bond Features & Covenants

  1. Fixed-Income Security Features
  2. Bond Indenture Contents
  3. Affirmative vs Negative Covenants

Reading 48 Cash Flow Structures & Contingencies

  1. Fixed-Income Cash Flow Structures
  2. Contingency Provisions
  3. Legal, Regulatory & Tax Considerations

Reading 49 Market Segments & Trading Venues

  1. Fixed-Income Market Segments & Participants
  2. Types of Fixed-Income Indexes
  3. Primary vs Secondary Markets Compared to Equity

Reading 50 Corporate Funding Alternatives

  1. Short-Term Corporate Funding Alternatives
  2. Repurchase Agreements
  3. Long-Term Funding: Investment-Grade vs High-Yield

Reading 51 Sovereign & Supranational Issuance

  1. Government & Supranational Funding Choices
  2. Government vs Corporate Issuance & Trading

Reading 52 Bond Pricing Fundamentals

  1. Builds on it, step 2: Bond Pricing on Coupon Dates
  2. Builds on it, step 3: Bond Pricing Between Coupon Dates
  3. Builds on it, step 3: Price-Coupon-Maturity-Yield Relationships
  4. Builds on it, step 4: Matrix Pricing

Reading 53 Fixed-Rate Yield Measures

  1. Builds on it, step 1: Annual Yield Across Compounding Frequencies
  2. Builds on it, step 2: Fixed-Rate Bond Yield Measures
  3. Builds on it, step 3: Yield Spread Measures

Reading 54 Floating-Rate & Money Market Yields

  1. Builds on it, step 4: Floating-Rate Yield Spread Measures
  2. Builds on it, step 2: Money Market Yield Measures

Reading 55 Spot, Par & Forward Curves

  1. Builds on it, step 3: Spot Rates & the Spot Curve
  2. Builds on it, step 4: Par Rates & Forward Rates
  3. Builds on it, step 4: Conversions Between Spot & Forward Rates
  4. Builds on it, step 5: Bond Pricing with Forward Rates
  5. Builds on it, step 6: Comparison of Spot, Par & Forward Curves

Reading 56 Sources of Return & Macaulay Duration

  1. Builds on it, step 3: Sources of Return on a Fixed-Rate Bond
  2. Builds on it, step 4: Holding Period Return, Duration & Horizon
  3. Builds on it, step 5: Macaulay Duration

Reading 57 Modified Duration & PVBP

  1. Builds on it, step 6: Modified Duration
  2. Builds on it, step 7: Money Duration & PVBP
  3. Builds on it, step 4: Maturity, Coupon & Yield Effects

Reading 58 Convexity & Portfolio Measures

  1. Builds on it, step 7: Convexity & the Convexity Adjustment
  2. Builds on it, step 8: Price Change Estimation
  3. Builds on it, step 9: Portfolio Duration & Convexity
  4. Builds on it, step 10: Limitations of Portfolio Measures

Reading 59 Effective & Empirical Risk Measures

  1. Builds on it, step 8: Effective Duration & Effective Convexity
  2. Builds on it, step 9: Price Change Using Effective Measures
  3. Builds on it, step 7: Key Rate Duration
  4. Builds on it, step 9: Empirical vs Analytical Duration

Reading 60 Credit Risk Components & Spreads

  1. Credit Risk Components
  2. Credit Rating Agency Ratings
  3. Builds on it, step 4: Drivers of Yield Spreads

Reading 61 Sovereign Credit Analysis

  1. Sovereign Credit Analysis
  2. Non-Sovereign Government Credit Analysis

Reading 62 Corporate Credit Analysis

  1. Qualitative Factors in Corporate Credit
  2. Quantitative Factors & Credit Ratios
  3. Seniority Rankings & Priority of Claims

Reading 63 Securitization Mechanics

  1. Benefits of Securitization
  2. Securitization Process, Parties & Roles

Reading 64 Asset-Backed Securities

  1. Covered Bonds
  2. Credit Enhancement Structures
  3. Non-Mortgage Asset-Backed Securities
  4. Collateralized Debt Obligations

Reading 65 Mortgage-Backed Securities

  1. Prepayment Risk & Time Tranching
  2. Residential Mortgage Loan Features
  3. Mortgage Pass-Through Securities
  4. Collateralized Mortgage Obligations
  5. Commercial Mortgage-Backed Securities
Derivatives 10 Readings · 25 concepts

Reading 66 Instrument & Market Features

  1. Definition & Basic Features of a Derivative
  2. Derivative Market Structure
  3. Over-the-Counter vs Exchange-Traded Markets

Reading 67 Forward Commitments & Contingent Claims

  1. Forwards, Futures & Swaps Defined
  2. Options & Credit Derivatives Defined
  3. Option Value at Expiration & Profit
  4. Forward Commitments vs Contingent Claims

Reading 68 Benefits, Risks & Applications

  1. Benefits & Risks of Derivatives
  2. Derivative Use by Issuers vs Investors

Reading 69 Arbitrage, Replication & Cost of Carry

  1. Builds on it, step 3: Arbitrage & Replication in Pricing
  2. Builds on it, step 4: Spot vs Expected Future Price
  3. Builds on it, step 5: Cost of Carry

Reading 70 Forward Contract Pricing & Valuation

  1. Builds on it, step 6: Forward Value & Price Across the Contract Life
  2. Builds on it, step 5: Interest Rate Forward Contracts

Reading 71 Futures Contract Pricing & Valuation

  1. Builds on it, step 7: Forward vs Futures Value and Price
  2. Builds on it, step 8: Sources of Forward-Futures Price Divergence

Reading 72 Swap Pricing & Valuation

  1. Builds on it, step 7: Swaps as a Series of Forwards
  2. Builds on it, step 8: Swap Value vs Swap Price

Reading 73 Option Pricing & Valuation

  1. Exercise Value, Moneyness & Time Value
  2. Builds on it, step 4: Arbitrage & Replication: Forwards vs Options
  3. Determinants of Option Value

Reading 74 Put-Call Parity

  1. Builds on it, step 4: Put-Call Parity (European Options)
  2. Builds on it, step 5: Put-Call Forward Parity

Reading 75 Binomial Valuation & Risk Neutrality

  1. Builds on it, step 5: One-Period Binomial Valuation
  2. Builds on it, step 6: Risk Neutrality in Derivatives Pricing
Alternative Investments 7 Readings · 22 concepts

Reading 76 Categories, Methods & Structures

  1. Features & Categories of Alternative Investments
  2. Direct, Co-Investment & Fund Investment Methods
  3. Ownership & Compensation Structures

Reading 77 Performance Appraisal & Fee Impact

  1. Performance Appraisal of Alternative Investments
  2. Returns Before and After Fees

Reading 78 Private Equity & Private Debt

  1. Private Equity Features & Characteristics
  2. Private Debt Features & Characteristics
  3. Diversification Benefits of Private Capital

Reading 79 Real Estate & Infrastructure

  1. Real Estate Features & Characteristics
  2. Real Estate Investment Characteristics
  3. Infrastructure Features & Characteristics
  4. Infrastructure Investment Characteristics

Reading 80 Natural Resources & Commodities

  1. Raw Land, Timberland & Farmland
  2. Commodities
  3. Risk, Return & Diversification in Natural Resources

Reading 81 Hedge Funds

  1. Hedge Fund Investment Features
  2. Hedge Fund Forms & Vehicles
  3. Risk, Return & Diversification in Hedge Funds

Reading 82 Digital Assets & Distributed Ledgers

  1. Distributed Ledger Technology Applications
  2. Investment Features of Digital Assets
  3. Digital Asset Forms & Vehicles
  4. Risk, Return & Diversification in Digital Assets
Portfolio Management 6 Readings · 43 concepts

Reading 83 Risk, Return & the Efficient Frontier

  1. Characteristics of Major Asset Classes
  2. Risk Aversion & Portfolio Selection
  3. Utility & the Capital Allocation Line
  4. Optimal Portfolio Selection and the Capital Allocation Line
  5. Mean, Variance, Covariance & Correlation from Historical Data
  6. Portfolio Standard Deviation
  7. Effect of Imperfect Correlation
  8. Minimum-Variance Portfolio and the Efficient Frontier
  9. Global Minimum-Variance Portfolio

Reading 84 CAPM & Performance Measures

  1. Adding a Riskless Asset to a Risky Portfolio
  2. Market Portfolio and the Capital Market Line
  3. Systematic vs Nonsystematic Risk
  4. Return Generating Models & the Market Model
  5. Beta
  6. CAPM & Its Assumptions
  7. Security Market Line
  8. Expected Return Under the CAPM
  9. Applications of CAPM and SML
  10. Risk-Adjusted Performance Measures

Reading 85 Portfolio Approach & the Asset Management Industry

  1. Portfolio Approach to Investing
  2. Stages of the Portfolio Management Process
  3. Types of Investors & Their Needs
  4. Defined Contribution & Defined Benefit Pension Plans
  5. The Asset Management Industry
  6. Mutual Funds & Pooled Investment Products

Reading 86 Investment Policy & Portfolio Construction

  1. Purpose of a Written Investment Policy Statement
  2. Components of an IPS
  3. Risk & Return Objectives
  4. Willingness vs Ability to Take Risk
  5. Investment Constraints
  6. Asset Class Specification
  7. Principles of Portfolio Construction
  8. ESG Integration in Portfolio Planning

Reading 87 Behavioral Biases of Individuals

  1. Cognitive Errors vs Emotional Biases
  2. Commonly Recognised Behavioural Biases
  3. Behavioural Effects on Market Characteristics

Reading 88 Risk Management Frameworks & Governance

  1. Definition of Risk Management
  2. Risk Management Framework
  3. Risk Governance
  4. Risk Tolerance
  5. Risk Budgeting
  6. Financial & Non-Financial Sources of Risk
  7. Measuring & Modifying Risk Exposures
Ethical and Professional Standards 5 Readings · 22 concepts

Reading 89 Ethics, Trust & Professionalism

  1. Definition of Ethics
  2. Why Professions Adopt a Code of Ethics
  3. Professions and the Establishment of Trust
  4. Why Investment Management Demands High Ethical Standards
  5. Professionalism in Investment Management
  6. Challenges to Ethical Behaviour
  7. Ethical vs Legal Standards
  8. Ethical Decision-Making Framework

Reading 90 Code of Ethics & Standards of Professional Conduct

  1. Professional Conduct Program Structure and Enforcement
  2. The Code of Ethics: Six Core Principles
  3. Seven Standards of Professional Conduct
  4. Ethical Responsibilities and Standard Sub-Sections

Reading 91 Guidance for Standards I-VII

  1. Application of the Code and Standards
  2. Preventive Practices & Procedures
  3. Identifying Conforming vs Violating Conduct

Reading 92 Global Investment Performance Standards

  1. Purpose, Compliance Eligibility & Beneficiaries
  2. Firm-Level GIPS Standards: Core Concepts
  3. Composites in Performance Reporting
  4. Fundamentals of Compliance
  5. Independent Verification

Reading 93 Ethics Application

  1. Evaluation of Practices, Policies and Conduct
  2. Determination and Explanation of Violations

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12% stated rate · axis zoomed in

Effective annual rate at a stated 12%
Compounding periods a yearAnswer optionEffective annual rate
1A12.00%
2B12.36%
4C12.55%
1212.68%
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Does Holigence tell me whether I will pass?

No. The app shows which concepts you have answered and confirmed yourself. It shows no overall percentage score and no pass probability, and it calls its own mock exam “not a calibrated pass prediction”. Holigence does not guarantee exam success.

What does Holigence cost?

The first five Readings of Quantitative Methods are free, with or without an account. The planned price for the full catalogue is €39 per month, with monthly cancellation. You cannot subscribe yet; there is no payment and no contract.

Do I need an account?

Not to try it. As a guest you practise the free Readings; answers are not saved. An account saves your progress and uses a passkey (PIN, fingerprint or face recognition) instead of a password, with no email address or real name.

Are there apps for iOS and Android?

Not yet. Holigence is a web app: it runs in the browser, on a phone too, and can be installed from there. Standalone apps for iOS and Android have not been released yet.

Who runs Holigence?

Holigence GbR in Karben, Germany. Its partners, Niklas Sipf and Marcel Molenda, run this website and the app at holigence.app.

See the legal notice

The next question is in the app.

Open app holigence.app

The first time you open it, the app takes you through Goal, Rhythm and Start. After that you practise as a guest, without an account.