Value investing is an investment paradigm that involves buying securities that appear underpriced by some form of fundamental analysis. The various forms of value investing derive from the investment philosophy first taught by Benjamin Graham and David Dodd at Columbia Business School in 1928, subsequently developed in their 1934 text Security Analysis; the early value opportunities identified by Graham and Dodd included stock in public companies trading at discounts to book value or tangible book value, those with high dividend yields, those having low price-to-earning multiples, or low price-to-book ratios. High-profile proponents of value investing, including Berkshire Hathaway chairman Warren Buffett, have argued that the essence of value investing is buying stocks at less than their intrinsic value; the discount of the market price to the intrinsic value is what Benjamin Graham called the "margin of safety". For the last 25 years, under the influence of Charlie Munger, Buffett expanded the value investing concept with a focus on "finding an outstanding company at a sensible price" rather than generic companies at a bargain price.
Graham never used the phrase, "value investing" — the term was coined to help describe his ideas and has resulted in significant misinterpretation of his principles, the foremost being that Graham recommended cheap stocks. Value investing was established by Benjamin Graham and David Dodd, both professors at Columbia Business School and teachers of many famous investors. In Graham's book The Intelligent Investor, he advocated the important concept of margin of safety — first introduced in Security Analysis, a 1934 book he co-authored with David Dodd — which calls for an approach to investing, focused on purchasing equities at prices less than their intrinsic values. In terms of picking or screening stocks, he recommended purchasing firms which have steady profits, are trading at low prices to book value, have low price-to-earnings ratios, which have low debt. However, the concept of value has evolved since the 1970s. Book value is most useful in industries. Intangible assets such as patents, brands, or goodwill are difficult to quantify, may not survive the break-up of a company.
When an industry is going through fast technological advancements, the value of its assets is not estimated. Sometimes, the production power of an asset can be reduced due to competitive disruptive innovation and therefore its value can suffer permanent impairment. One good example of decreasing asset value is a personal computer. An example of where book value does not mean much is retail sectors. One modern model of calculating value is the discounted cash flow model, where the value of an asset is the sum of its future cash flows, discounted back to the present. Value investing has proven to be a successful investment strategy. There are several ways to evaluate the success. One way is to examine the performance of simple value strategies, such as buying low PE ratio stocks, low price-to-cash-flow ratio stocks, or low price-to-book ratio stocks. Numerous academics have published studies investigating the effects of buying value stocks; these studies have found that value stocks outperform growth stocks and the market as a whole.
Examining the performance of the best known value investors would not be instructive, because investors do not become well known unless they are successful. This introduces a selection bias. A better way to investigate the performance of a group of value investors was suggested by Warren Buffett, in his May 17, 1984 speech, published as The Superinvestors of Graham-and-Doddsville. In this speech, Buffett examined the performance of those investors who worked at Graham-Newman Corporation and were thus most influenced by Benjamin Graham. Buffett's conclusion is identical to that of the academic research on simple value investing strategies—value investing is, on average, successful in the long run. During about a 25-year period, published research and articles in leading journals of the value ilk were few. Warren Buffett once commented, "You couldn't advance in a finance department in this country unless you thought that the world was flat." Benjamin Graham is regarded by many to be the father of value investing.
Along with David Dodd, he wrote Security Analysis, first published in 1934. The most lasting contribution of this book to the field of security analysis was to emphasize the quantifiable aspects of security analysis while minimizing the importance of more qualitative factors such as the quality of a company's management. Graham wrote The Intelligent Investor, a book that brought value investing to individual investors. Aside from Buffett, many of Graham's other students, such as William J. Ruane, Irving Kahn, Walter Schloss, Charles Brandes went on to become successful investors in their own right. Irving Kahn was one of Graham's teaching assistants at Columbia University in the 1930s, he was a close friend and confidant of Graham's for decades and made research contributions to Graham's texts Security Analysis and Stability, World Commodities and World Currencies and The Intelligent Investor. Kahn was a partner at various finance firms until 1978 when he and his sons, Thomas Graham Kahn and Alan Kahn, started the value investing firm, Kahn Brothers & Company.
Irving Kahn remained chairman of the firm until his death at age 109. Walter Schloss was another Graham-and-Dodd disciple. Schloss never had a formal education; when he was 18, he started working as a runner on Wall Street. He attended investment courses taught by Ben Graham at the New York Stock Exchange Institute
Financial crisis of 2007–2008
The financial crisis of 2007–2008 known as the global financial crisis and the 2008 financial crisis, is considered by many economists to have been the most serious financial crisis since the Great Depression of the 1930s. It began in 2007 with a crisis in the subprime mortgage market in the United States, developed into a full-blown international banking crisis with the collapse of the investment bank Lehman Brothers on September 15, 2008. Excessive risk-taking by banks such as Lehman Brothers helped to magnify the financial impact globally. Massive bail-outs of financial institutions and other palliative monetary and fiscal policies were employed to prevent a possible collapse of the world financial system; the crisis was nonetheless followed by the Great Recession. The European debt crisis, a crisis in the banking system of the European countries using the euro, followed later. In 2010, the Dodd–Frank Wall Street Reform and Consumer Protection Act was enacted in the US following the crisis to "promote the financial stability of the United States".
The Basel III capital and liquidity standards were adopted by countries around the world. Following is a timeline of major events during the financial crisis: February 20, 2007: The Dow Jones Industrial Average hit its peak level of 12,786. Existing home sales peaked this month and began to decline. April 2007: New Century, an American REIT specializing in sub-prime mortgages, filed for Chapter 11 bankruptcy protection; this propagated the sub-prime crisis, to banks around the world. August 9, 2007: BNP Paribas, a French investment bank, blocked withdrawals from two of its hedge funds – a clear sign that banks were refusing to do business with each other. August 2007: The Federal Open Market Committee began reducing the federal funds rate from its peak of 5.25% in response to worries about liquidity and confidence. December 12, 2007: The Federal Reserve instituted the Term Auction Facility to supply short-term credit to banks with sub-prime mortgages. February 13, 2008: The Economic Stimulus Act of 2008 was enacted, which included a tax rebate.
March 17, 2008: The Federal Reserve guaranteed Bear Stearns' bad loans to facilitate its acquisition by JPMorgan Chase. July 11, 2008: IndyMac failed. July 30, 2008: The Housing and Economic Recovery Act of 2008 was enacted. September 7, 2008: Fannie Mae and Freddie Mac were taken over by the federal government. September 15, 2008: Lehman Brothers went bankrupt after the Federal Reserve declined to guarantee its loans, causing the Dow Jones to drop 504 points, its worst decline in seven years; the same day, Bank of America purchased Merrill Lynch. September 16, 2008: The Federal Reserve took over American International Group; the Reserve Primary Fund "broke the buck" as a result of massive withdrawals from money market accounts. September 21, 2008: Goldman Sachs and Morgan Stanley converted themselves from investment banks to bank holding companies to increase their protection by the Federal Reserve. September 26, 2008: Washington Mutual went bankrupt after a bank run. September 29, 2008: The House of Representatives rejected the Emergency Economic Stabilization Act of 2008 instituting the $700 billion Troubled Asset Relief Program.
In response the Dow Jones dropped its largest single-day decline. October 3, 2008: Congress passed the Emergency Economic Stabilization Act of 2008. November 25, 2008: The Term Asset-Backed Securities Loan Facility was announced. December 16, 2008: The federal funds rate was lowered to zero percent. January 2009: The Big Three automobile manufacturers received a bailout from the TARP program. February 13, 2009: Congress approved the American Recovery and Reinvestment Act of 2009, a $787 billion economic stimulus package. March 6, 2009: The Dow Jones hit its lowest level of 6,443.27. The precipitating factor for the Financial Crisis of 2007–2008 was a high default rate in the United States subprime home mortgage sector – the bursting of the "subprime bubble." While the causes of the bubble are disputed, some or all of the following factors must have contributed. Low interest rates encouraged mortgage lending. Securitization. Many mortgages were bundled together and formed into new financial instruments called mortgage-backed securities, in a process known as securitization.
These bundles could be sold as low-risk securities because they were backed by credit default swaps insurance. Because mortgage lenders could pass these mortgages on in this way, they could and did adopt loose underwriting criteria. Lax regulation allowed predatory lending in the private sector after the federal government overrode anti-predatory state laws in 2004; the Community Reinvestment Act, a 1977 US federal law designed to help low- and moderate-income Americans get mortgage loans encouraged banks to grant mortgages to higher risk families. Reckless lending by, for example, Bank of America's Countrywide Financial unit, caused Fannie Mae and Freddie Mac to lose market share and to respond by lowering their own standards. Mortgage guarantees. Many of the subprime loans were bundled and sold accruing to the quasi-government agencies Fannie Mae and Freddie Mac; the implicit guarantee by the US federal government created a moral hazard and contributed to a glut of risky lending. The accumulation and subsequent high default rate of these subprime mortgages led to the financial crisis and the consequent damage to the world economy.
High mortgage approval rates led to a large pool of homebuyers. This appreciation in value led large numbers of homeowners to borrow against their homes as an apparent windfall; this "bubble" would be burst by a r
Steven John Carell is an American actor, producer and director. He is well known for his portrayal of gaffe-prone boss Michael Scott on the American version of The Office, on which he worked as an occasional producer and director. Carell was a correspondent on The Daily Show with Jon Stewart from 1999 to 2005, he has starred in Anchorman: The Legend of Ron Burgundy, The 40-Year-Old Virgin, Evan Almighty, Get Smart, Stupid, The Incredible Burt Wonderstone and The Way, Way Back. He has voice acted in Over the Hedge, Horton Hears a Who! and the Despicable Me franchise. In 2016, Carell co-created the TBS comedy series Angie Tribeca with Nancy Carell. Carell was nominated as "America's funniest man" in Life magazine, received the Golden Globe Award for Best Actor – Television Series Musical or Comedy for his work on the first season of The Office, his role as wrestling coach and convicted murderer John Eleuthère du Pont in the drama film Foxcatcher earned him, among various honors, nominations for the Academy Award for Best Actor, the Golden Globe Award for Best Actor – Motion Picture Drama and the BAFTA Award for Best Actor in a Supporting Role.
He received acclaim for his roles in Little Miss Sunshine, The Big Short, Battle of the Sexes, the latter two earning him his eighth and ninth Golden Globe Award nominations, respectively. The youngest of four brothers, Carell was born at Emerson Hospital in Concord and raised in nearby Acton, Massachusetts, his father, Edwin A. Carell, was an electrical engineer, his mother, Harriet Theresa, was a psychiatric nurse, his maternal uncle, Stanley Koch, worked with scientist Allen B. DuMont to create cathode ray tubes, his father is of Italian and German descent and his mother was of Polish ancestry. Carell was raised Roman Catholic, was educated at Nashoba Brooks School, The Fenn School, Middlesex School, he played ice lacrosse while in high school. He played the fife, performing with other members of his family, joined a reenacting group portraying the 10th Regiment of Foot, he attributed his interest in history to this, earning a degree in the subject from Denison University in Granville, Ohio, in 1984.
While at Denison, Carell was a member of Burpee's Seedy Theatrical Company, a student-run improvisational comedy troupe and was a goalie on the school's Big Red hockey team for four years. He spent time as a disc jockey under the name "Sapphire Steve Carell" at WDUB, the campus radio station. Carell states that he worked as a mail carrier in Massachusetts, he recounted that he quit after seven months because his boss told him he was not good at being a mail carrier and needed to be faster. Early in his performing career, Carell acted on the stage in a touring children's theater company in the comedy musical Knat Scatt Private Eye and in a television commercial for the restaurant chain Brown's Chicken in 1989. In 1991, Carell performed with Chicago troupe The Second City where Stephen Colbert was his understudy for a time. Carell made his film debut in a minor role in Curly Sue. In spring 1996, he was a cast member of The Dana Carvey Show, a short-lived sketch comedy program on ABC. Along with fellow cast member Colbert, Carell provided the voice of Gary, half of The Ambiguously Gay Duo, the Robert Smigel-produced animated short which continued on Saturday Night Live that year.
While the program lasted only seven episodes, The Dana Carvey Show has since been credited with forging Carell's career. He starred in a few short-lived television series and Over the Top, he has made numerous guest appearances, including in "Funny Girl", an episode of Just Shoot Me!. Additional screen credits include Brad Hall's short-lived situation comedy Watching Ellie and Woody Allen's Melinda and Melinda. Carell was a correspondent for The Daily Show from 1999 to 2005, with a number of regular segments including "Even Stevphen" with Stephen Colbert and "Produce Pete". In 2005, Carell signed a deal with NBC to star in The Office, a remake of the British TV series of the same name. In the series, a mockumentary about life at a mid-sized paper supply company, Carell played the role of Michael Scott, the idiosyncratic regional manager of Dunder Mifflin, in Scranton, Pennsylvania. Although the first season of the adaptation suffered mediocre ratings, NBC renewed it for another season due to the anticipated success of Carell's film The 40-Year-Old Virgin, the series subsequently became a ratings success.
Carell won a Golden Globe Award and Television Critics Association Award during 2006 for his role in The Office. He received six Primetime Emmy Award nominations for his work in the series. Carell earned US$175,000 per episode of the third season of The Office, twice his salary for the previous two seasons. In an Entertainment Weekly interview, he commented on his salary, saying, "You don't want people to think you're a pampered jerk. Salaries can be ridiculous. On the other hand, a lot of people are making a lot of money off of these shows."Carell was allowed "flex time" during filming to work on theatrical films. Carell worked on Evan Almighty during a production hiatus during the second season of The Office. Production ended during the middle of the fourth season of The Office because of Carell's and others' refusal to cross the picket line of the 2007 Writers Guild of America strike. Carell, a WGA member, has written two episodes of The Office: "Casino Night" and "Survivor Man". Both episodes were praised, Carell won a Writers Guild of America Award for "Casino Night
Amazon.com, Inc. is an American multinational technology company based in Seattle, Washington that focuses in e-commerce, cloud computing, artificial intelligence. Amazon is the largest e-commerce marketplace and cloud computing platform in the world as measured by revenue and market capitalization. Amazon.com was founded by Jeff Bezos on July 5, 1994, started as an online bookstore but diversified to sell video downloads/streaming, MP3 downloads/streaming, audiobook downloads/streaming, video games, apparel, food and jewelry. The company owns a publishing arm, Amazon Publishing, a film and television studio, Amazon Studios, produces consumer electronics lines including Kindle e-readers, Fire tablets, Fire TV, Echo devices, is the world's largest provider of cloud infrastructure services through its AWS subsidiary. Amazon has separate retail websites for some countries and offers international shipping of some of its products to certain other countries. 100 million people subscribe to Amazon Prime.
Amazon is the largest Internet company by revenue in the world and the second largest employer in the United States. In 2015, Amazon surpassed Walmart as the most valuable retailer in the United States by market capitalization. In 2017, Amazon acquired Whole Foods Market for $13.4 billion, which vastly increased Amazon's presence as a brick-and-mortar retailer. The acquisition was interpreted by some as a direct attempt to challenge Walmart's traditional retail stores. In 1994, Jeff Bezos incorporated Amazon. In May 1997, the organization went public; the company began selling music and videos in 1998, at which time it began operations internationally by acquiring online sellers of books in United Kingdom and Germany. The following year, the organization sold video games, consumer electronics, home-improvement items, software and toys in addition to other items. In 2002, the corporation started Amazon Web Services, which provided data on Web site popularity, Internet traffic patterns and other statistics for marketers and developers.
In 2006, the organization grew its AWS portfolio when Elastic Compute Cloud, which rents computer processing power as well as Simple Storage Service, that rents data storage via the Internet, were made available. That same year, the company started Fulfillment by Amazon which managed the inventory of individuals and small companies selling their belongings through the company internet site. In 2012, Amazon bought Kiva Systems to automate its inventory-management business, purchasing Whole Foods Market supermarket chain five years in 2017; as of March 2019, the board of directors is: Jeff Bezos, President, CEO, Chairman Tom Alberg, Managing partner, Madrona Venture Group Rosalind Brewer, Group President, COO, Starbucks Jamie Gorelick, Wilmer Cutler Pickering Hale, Dorr Daniel P. Huttenlocher and Vice Provost, Cornell University Judy McGrath, former CEO, MTV Networks Indra Nooyi, former CEO, PepsiCo Jon Rubinstein, former Chairman, CEO, Inc. Thomas O. Ryder, former Chairman, CEO, Reader's Digest Association Patty Stonesifer, CEO, Martha's Table Wendell P. Weeks, President, CEO, Corning Inc.
In 2000, U. S. toy retailer Toys "R" Us entered into a 10-year agreement with Amazon, valued at $50 million per year plus a cut of sales, under which Toys "R" Us would be the exclusive supplier of toys and baby products on the service, the chain's website would redirect to Amazon's Toys & Games category. In 2004, Toys "R" Us sued Amazon, claiming that because of a perceived lack of variety in Toys "R" Us stock, Amazon had knowingly allowed third-party sellers to offer items on the service in categories that Toys "R" Us had been granted exclusivity. In 2006, a court ruled in favor of Toys "R" Us, giving it the right to unwind its agreement with Amazon and establish its own independent e-commerce website; the company was awarded $51 million in damages. In 2001, Amazon entered into a similar agreement with Borders Group, under which Amazon would co-manage Borders.com as a co-branded service, Borders pulled out of the arrangement in 2007, with plans to launch its own online store. On October 18, 2011, Amazon.com announced a partnership with DC Comics for the exclusive digital rights to many popular comics, including Superman, Green Lantern, The Sandman, Watchmen.
The partnership has caused well-known bookstores like Barnes & Noble to remove these titles from their shelves. In November 2013, Amazon announced a partnership with the United States Postal Service to begin delivering orders on Sundays; the service, included in Amazon's standard shipping rates, initiated in metropolitan areas of Los Angeles and New York because of the high-volume and inability to deliver in a timely way, with plans to expand into Dallas, New Orleans and Phoenix by 2014. In June 2017, Nike confirmed a "pilot" partnership with Amazon to sell goods directly on the platform; as of October 11, 2017, AmazonFresh sells a range of Booths branded products for home delivery in selected areas. In September 2017, Amazon ventured with one of its sellers JV Appario Retail owned by Patni Group which has recorded a total income of US$ 104.44 million in financial year 2017–18. In November 2018, Amazon reached an agreement with Apple Inc. to sell selected products through the service, via the company and selected Apple Authorized Resellers.
As a result of this partnership, only Apple Authorized Resellers may sell Apple products on Amazon effective January 4, 2019. Amazon.com's product lines available at its website include several media, baby products, consumer electronics, beauty products, gourmet food, groceries and perso
Steel is an alloy of iron and carbon, sometimes other elements. Because of its high tensile strength and low cost, it is a major component used in buildings, tools, automobiles, machines and weapons. Iron is the base metal of steel. Iron is able to take on two crystalline forms, body centered cubic and face centered cubic, depending on its temperature. In the body-centered cubic arrangement, there is an iron atom in the center and eight atoms at the vertices of each cubic unit cell, it is the interaction of the allotropes of iron with the alloying elements carbon, that gives steel and cast iron their range of unique properties. In pure iron, the crystal structure has little resistance to the iron atoms slipping past one another, so pure iron is quite ductile, or soft and formed. In steel, small amounts of carbon, other elements, inclusions within the iron act as hardening agents that prevent the movement of dislocations that are common in the crystal lattices of iron atoms; the carbon in typical steel alloys may contribute up to 2.14% of its weight.
Varying the amount of carbon and many other alloying elements, as well as controlling their chemical and physical makeup in the final steel, slows the movement of those dislocations that make pure iron ductile, thus controls and enhances its qualities. These qualities include such things as the hardness, quenching behavior, need for annealing, tempering behavior, yield strength, tensile strength of the resulting steel; the increase in steel's strength compared to pure iron is possible only by reducing iron's ductility. Steel was produced in bloomery furnaces for thousands of years, but its large-scale, industrial use began only after more efficient production methods were devised in the 17th century, with the production of blister steel and crucible steel. With the invention of the Bessemer process in the mid-19th century, a new era of mass-produced steel began; this was followed by the Siemens–Martin process and the Gilchrist–Thomas process that refined the quality of steel. With their introductions, mild steel replaced wrought iron.
Further refinements in the process, such as basic oxygen steelmaking replaced earlier methods by further lowering the cost of production and increasing the quality of the final product. Today, steel is one of the most common manmade materials in the world, with more than 1.6 billion tons produced annually. Modern steel is identified by various grades defined by assorted standards organizations; the noun steel originates from the Proto-Germanic adjective stahliją or stakhlijan, related to stahlaz or stahliją. The carbon content of steel is between 0.002% and 2.14% by weight for plain iron–carbon alloys. These values vary depending on alloying elements such as manganese, nickel, so on. Steel is an iron-carbon alloy that does not undergo eutectic reaction. In contrast, cast iron does undergo eutectic reaction. Too little carbon content leaves iron quite soft and weak. Carbon contents higher than those of steel make a brittle alloy called pig iron. While iron alloyed with carbon is called carbon steel, alloy steel is steel to which other alloying elements have been intentionally added to modify the characteristics of steel.
Common alloying elements include: manganese, chromium, boron, vanadium, tungsten and niobium. Additional elements, most considered undesirable, are important in steel: phosphorus, sulfur and traces of oxygen and copper. Plain carbon-iron alloys with a higher than 2.1% carbon content are known as cast iron. With modern steelmaking techniques such as powder metal forming, it is possible to make high-carbon steels, but such are not common. Cast iron is not malleable when hot, but it can be formed by casting as it has a lower melting point than steel and good castability properties. Certain compositions of cast iron, while retaining the economies of melting and casting, can be heat treated after casting to make malleable iron or ductile iron objects. Steel is distinguishable from wrought iron, which may contain a small amount of carbon but large amounts of slag. Iron is found in the Earth's crust in the form of an ore an iron oxide, such as magnetite or hematite. Iron is extracted from iron ore by removing the oxygen through its combination with a preferred chemical partner such as carbon, lost to the atmosphere as carbon dioxide.
This process, known as smelting, was first applied to metals with lower melting points, such as tin, which melts at about 250 °C, copper, which melts at about 1,100 °C, the combination, which has a melting point lower than 1,083 °C. In comparison, cast iron melts at about 1,375 °C. Small quantities of iron were smelted in ancient times, in the solid state, by heating the ore in a charcoal fire and welding the clumps together with a hammer and in the process squeezing out the impurities. With care, the carbon content could be controlled by moving it around in the fire. Unlike copper and tin, liquid or solid iron dissolves carbon quite readily. All of these temperatures could be reached with ancient methods used since the Bronze Age. Since the oxidation rate of iron increases beyond 800 °C, it is important that smelting take place in a low-oxygen environment. Smelting, using carbon to reduce iro
Chartered Financial Analyst
The Chartered Financial Analyst Program is a professional credential offered internationally by the American-based CFA Institute to investment and financial professionals. The program covers a broad range of topics relating to investment management, financial analysis, quantitative analysis, fixed income and derivatives, provides a generalist knowledge of other areas of finance. A candidate who completes the program and meets other professional requirements is awarded the "CFA charter" and becomes a "CFA charterholder"; as of October 2018, there are 150,000 charterholders around the world in more than 165 countries. Successful candidates take an average of four years to earn their CFA charter. Only around 9% of candidates have consecutively passed all three levels in the past decade; the top employers of CFA Charterholders globally include JP Morgan, UBS, Morgan Stanley, Royal Bank of Canada, BlackRock and Goldman Sachs. Notable CFA Charterholders include billionaires Bill H. Gross, founder of PIMCO, Howard Marks, founder of Oaktree Capital Management.
The predecessor of CFA Institute, the Financial Analysts Federation, was established in 1947 as a service organization for investment professionals. The earliest CFA charterholders were "grandfathered" in through work experience only; the series of three exams was established along with requirements to being a practitioner for several years to qualify to take the exams. In 1990, in the hopes of boosting the credential's public profile, the CFA Institute merged with the FAF and the Institute of Chartered Financial Analysts; the CFA program began in the United States but has become international with many people becoming charterholders across Europe and Australia. By 2003 fewer than half the candidates in the CFA program were based in the United States and Canada, with most of the other candidates based in Asia or Europe; the number of charterholders in India and China had increased by 25% and 53% from 2005-06. To become a CFA charterholder, candidates must satisfy the following requirements: Pass all three levels of the CFA Program Have four years of qualified work experience.
However, individual level exams may be taken prior to satisfying this requirement. The basic requirements for participation in the CFA Program include holding a university degree or being in the final year of a university degree program, or having four years of qualified, professional work experience in an investment decision-making process. To obtain the charter, however, a candidate must have completed a university degree and four years of qualified, professional work experience, in addition to passing the three exams that test the candidate's knowledge of the academic portion of the CFA program. However, an accredited degree may not be a requirement. Candidates take one exam per year over three years. Fees as of December 2009 for each exam range from $710 to $955, depending on the date on which the candidate registers to take the exam, plus an additional $400 to $480 for program enrollment for new members. Level II and III pass rates apply to candidates that must have passed the prior level.
All three exams are administered on paper on a single day. The Level II and III exams are administered once a year the first weekend of June; each exam consists of two three-hour sessions. Level I has 240 independent, multiple-choice questions—all information required to answer the question is contained in the question. Level II has 120 multiple-choice questions, organized as 20 six-question item sets, each set having its own vignette of facts. To answer each question, the candidate must refer to the vignette as there is insufficient information in the question stem. Level III consists of a session of constructive response, essay-type questions, a session of 10 six-question item sets as in the Level II exam. On the multiple-choice/item set sections, there is no penalty for wrong answers. For the test, only two models of calculator are allowed, the Texas Instruments BA II Plus. Candidates who have taken the exam receive a score report, intended to be unspecific: there is no overall score for the test, only a Pass/Fail result, a range within which his or her performance for each topic area falls: less than or equal to 50%, 51%-70%, above 70%.
Failing candidates are informed of their decile rank within the body of failing candidates. The passing grade for the exams had been defined as 70% of the top percentage of exam papers until 1989; the Board of Governors reviews the results of the standard setting process and input from independent psychometricians. Standard setting is a process; the CFA exam uses the modified Angoff method, a used approac
A cement is a binder, a substance used for construction that sets and adheres to other materials to bind them together. Cement is used on its own, but rather to bind sand and gravel together. Cement mixed with fine aggregate produces mortar for masonry, or with sand and gravel, produces concrete. Cement is the most used material in existence and is only behind water as the planet's most-consumed resource. Cements used in construction are inorganic lime or calcium silicate based, can be characterized as either hydraulic or non-hydraulic, depending on the ability of the cement to set in the presence of water. Non-hydraulic cement does not set under water. Rather, it sets as it reacts with carbon dioxide in the air, it is resistant to attack by chemicals after setting. Hydraulic cements set and become adhesive due to a chemical reaction between the dry ingredients and water; the chemical reaction results in mineral hydrates that are not water-soluble and so are quite durable in water and safe from chemical attack.
This allows setting in wet conditions or under water and further protects the hardened material from chemical attack. The chemical process for hydraulic cement found by ancient Romans used volcanic ash with added lime; the word "cement" can be traced back to the Roman term opus caementicium, used to describe masonry resembling modern concrete, made from crushed rock with burnt lime as binder. The volcanic ash and pulverized brick supplements that were added to the burnt lime, to obtain a hydraulic binder, were referred to as cementum, cimentum, cäment, cement. In modern times, organic polymers are sometimes used as cements in concrete. Non-hydraulic cement, such as slaked lime, hardens by carbonation in the presence of carbon dioxide, present in the air. First calcium oxide is produced from calcium carbonate by calcination at temperatures above 825 °C for about 10 hours at atmospheric pressure: CaCO3 → CaO + CO2The calcium oxide is spent mixing it with water to make slaked lime: CaO + H2O → Ca2Once the excess water is evaporated, the carbonation starts: Ca2 + CO2 → CaCO3 + H2OThis reaction takes time, because the partial pressure of carbon dioxide in the air is low.
The carbonation reaction requires that the dry cement be exposed to air, so the slaked lime is a non-hydraulic cement and cannot be used under water. This process is called the lime cycle. Conversely, hydraulic cement hardens by hydration. Hydraulic cements are made of a mixture of silicates and oxides, the four main components being: Belite; the silicates are responsible for the cement's mechanical properties—the tricalcium aluminate and brownmillerite are essential for formation of the liquid phase during the kiln sintering. The chemistry of these reactions is not clear and is still the object of research; the earliest known occurrence of cement is from twelve million years ago. A deposit of cement was formed after an occurrence of oil shale located adjacent to a bed of limestone burned due to natural causes; these ancient deposits were investigated in the 1970s. Cement, chemically speaking, is a product that includes lime as the primary curing ingredient, but is far from the first material used for cementation.
The Babylonians and Assyrians used bitumen to bind together burnt alabaster slabs. In Egypt stone blocks were cemented together with a mortar made of sand and burnt gypsum, which contained calcium carbonate. Lime was used by the ancient Greeks. There is evidence that the Minoans of Crete used crushed potshards as an artificial pozzolan for hydraulic cement. Nobody knows who first discovered that a combination of hydrated non-hydraulic lime and a pozzolan produces a hydraulic mixture —but such concrete was used by the Ancient Macedonians, three centuries on a large scale by Roman engineers. There is... a kind of powder. It is found in the neighborhood of Baiae and in the country belonging to the towns round about Mt. Vesuvius; this substance when mixed with lime and rubble not only lends strength to buildings of other kinds, but when piers of it are constructed in the sea, they set hard under water. The Greeks used volcanic tuff from the island of Thera as their pozzolan and the Romans used crushed volcanic ash with lime.
This mixture could set under water. The material was called pozzolana from the town of Pozzuoli, west of Naples where volcanic ash was extracted. In the absence of pozzolanic ash, the Romans used powdered brick or pottery as a substitute and they may have used crushed tiles for this purpose before discovering natural sources near Rome; the huge dome of the Pantheon in Rome and the massive Baths of Caracalla are examples of ancient structures made from these concretes, many of which still stand. The vast system of Roman aqueducts made extensive use of hydraulic cement. Roman concrete was used on the outside of buildings; the normal technique was to use brick facing material as the formwork for an infill of mortar mixed with an aggregate of broken pieces of stone, potsherds, recycled chunks of concrete, or other building ru