Candidates writing the CFA Exam in 2010 should concentrate on the learning of outcome statements that have been changed from 2009 to 2010. These statements outlined by CFA institute are essentially the overview of the syllabus of CFA exam. Following are the additions in 2010 LOS.

Statistical Concepts and Market Returns:

• Discuss the use of Arithmetic Mean and Geometric Mean when determining investment returns

Probability Concepts:

• Define and explain the multiplication , addition, and total probability rules is added common Probability Distributions
• Calculate and interpret the probability function, PDF, and Cumulative distribution function is added along with calculate and interpret probabilities for a random variable, given its cumulative distribution function
• Define discrete random variable and a binomial variable
• Determine the probability that a normally distributed random variable lies inside a given confidence interval

Time Value of Money:

• Solve time value of money problems when compounding periods are other than annual

Hypothesis Testing:

• Explain and interpret the p-value as it relates to hypothesis testing;
• Identify the appropriate test statistic and interpret the results for a hypothesis test concerning the population mean of both large and small samples when the population is normally or approximately distributed and the variance is 1) known or 2) unknown;
• Identify the appropriate test statistic and interpret the results for a hypothesis test
concerning the equality of the population means of two at least approximately

normally distributed populations, based on independent random samples with

1) equal or 2) unequal assumed variances;

• Identify the appropriate test statistic and interpret the results for a hypothesis test
concerning the mean difference of two normally distributed populations (paired

comparisons test);

• Explain the costs of anticipated inflation
• Explain the relation among inflation, nominal interest rates, and the demand and supply of money;
• Explain the impact of inflation on unemployment and describe the short-run and long-run Phillips curve, including the effect of changes in the natural rate of unemployment;

Financial Reporting Mechanics:

• Explain the relationships among the income statement, balance sheet, statement of cash flows, and statement of owners’ equity;

Financial Reporting Standards:

• Describe the International Financial Reporting Standards (IFRS) framework, including the qualitative characteristics of financial statements, the required reporting elements, and the constraints and assumptions in preparing financial statements;

Understanding the Income Statement:

• Describe and calculate comprehensive income;
• State the accounting classification for items that are excluded from the income
statement but affect owners’ equity, and list the major types of items receiving

that treatment.

Understanding the Balance Sheet:

• Interpret balance sheets and statements of changes in equity.