Level I · 2026 curriculum · 11–14% of the exam

Equity Investments

Equity Investments covers how markets work, security market indexes, market efficiency, industry and company analysis, and equity valuation.

What the questions cover

• Market organisation: positions, margin, order types and market structures
• Constructing and calculating price-, value- and equal-weighted indexes
• Forms of market efficiency and market anomalies
• Types of equity securities and their risk and return
• Industry and company analysis
• Dividend discount models, multiples and asset-based valuation

How to study it

• Practise margin call and index return calculations until they are automatic.
• In dividend discount models, check whether you are given D0 or D1.