A treemap is a graphical tool for displaying categorical data. It uses colored rectangles to represent distinct categories, with the area of each rectangle being proportional to the value of the corresponding category.
Category: CFA Program
Histograms and Frequency Polygons
A histogram is a chart that presents numerical data. In a histogram, the height of each bar or column represents the absolute frequency of each category in the distribution.
Standard V(B): Communication With Clients and Prospective Clients
Members and Candidates must:
1 Disclose to clients and prospective clients the basic format and general principles of the investment processes they use to analyze investments, select securities, and construct portfolios and must promptly disclose any changes that might materially affect those processes.
2 Disclose to clients and prospective clients significant limitations and risks associated with the investment process.
3 Use reasonable judgment in identifying which factors are important to their investment analyses, recommendations, or actions and include those factors in communications with clients and prospective clients.
4 Distinguish between fact and opinion in the presentation of investment analysis and recommendations.
Contingency tables display the frequency distributions of two or more variables at once. They are useful for finding patterns among the variables.
Standard V(A): Diligence and Reasonable Basis
Members and Candidates must:
1 Exercise diligence, independence, and thoroughness in analyzing investments, making investment recommendations, and taking investment
2 Have a reasonable and adequate basis, supported by appropriate research and investigation, for any investment analysis, recommendation, or action.
A frequency distribution displays data in a table. It can be constructed by counting the observations of a variable belonging to a distinct group or having a given value.
Standard IV(C): Responsibilities of Supervisors
Members and Candidates must make reasonable efforts to ensure that anyone subject to their supervision or authority complies with applicable laws, rules, regulations, and the Code and Standards.
Standard IV(B): Additional Compensation Arrangements
Members and Candidates must not accept gifts, benefits, compensation, or consideration that competes with or might reasonably be expected to create a conflict of interest with their employer’s interest unless they obtain written consent from all parties involved.
Standard IV(A): Loyalty
In matters related to their employment, Members and Candidates must act for the benefit of their employer and not deprive their employer of the advantage of their skills and abilities, divulge confidential information, or otherwise cause harm to their employer.
Standard III(E): Preservation of Confidentiality
Members and Candidates must keep information about current, former, and prospective clients confidential unless:
1 The information concerns illegal activities on the part of the client or
2 Disclosure is required by law, or
3 The client or prospective client permits disclosure of the information.