CFA-Level-I Free Exam Questions and Answers PDF Updated on Mar-2023
Latest CFA-Level-I Exam Dumps Recently Updated 2200 Questions
CFA CFA-Level-I Exam Syllabus Topics:
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NEW QUESTION 801
Of the following statements:
I). The level of significance of a hypothesis test is the probability of rejecting the null hypothesis when it is actually true.
II). Type II error is failing to reject the null hypothesis when it is actually false.
- A. I and II are true
- B. Only I is true
- C. Only II is true
Answer: A
NEW QUESTION 802
Which statement is false?
- A. Continuation patterns suggest the market will maintain an established trend.
- B. Continuation patterns help traders differentiate between a price action that is in full reversal and those merely taking a pause.
- C. The left and right shoulders in a head and shoulders pattern are always symmetrical.
Answer: C
Explanation:
C is not true. It is not an absolute requirement. They can be different widths as well as different heights.
NEW QUESTION 803
The value of an option-free, 10-year, 7.5% coupon bond is $1,035. A bond indenture specifies terms of the put privilege, the put privilege having a value of $12.25. The value of the putable bond is:
- A. $1,022.75
- B. $1,035
- C. $1,047.25
Answer: C
Explanation:
The value of a putable bond is equal to the value of a similarly defined option-free bond plus the value of the put option.
NEW QUESTION 804
A 5-unit apartment building is being considered as an investment. The average monthly rent per unit is $1,150. The total vacancy and bad debt losses are projected at $3,450. Annual operating expenses include $8,500 for maintenance, $7,000 for property taxes, and $2,200 for property insurance. The net operating income would be closest to:
- A. $47,850
- B. $17,700
- C. $51,300
Answer: A
NEW QUESTION 805
A drop in the price level would:
- A. shift the aggregate demand curve to the left.
- B. does not shift the aggregate demand curve at all.
- C. shift the aggregate demand curve to the right.
Answer: B
Explanation:
It increases the quantity of goods demanded, and will cause a movement along (not shift of the curve) the demand curve.
NEW QUESTION 806
Utility curves will be very ______ for a less risk-averse investor.
- A. curved
- B. flat
- C. curvilinear
Answer: B
Explanation:
If an investor is very risk-averse, their utility curves will be very steep, indicating they will not tolerate much additional risk to obtain additional returns. A less risk-averse investor will have less steep utility curves.
NEW QUESTION 807
Refer to the graph below. If the government set the selling price equal to the marginal cost, the firm in the graph would:
- A. be making economic profits.
- B. be sustaining losses and would eventually go out of business.
- C. be making zero economic profits.
Answer: B
Explanation:
At price P4, the average cost is greater than the average revenue, so the firm is sustaining losses.
NEW QUESTION 808
A curve showing the relationship between price and the quantity of output supplied by an entire industry is a
- A. short-run supply curve.
- B. short-run marginal cost curve.
- C. short-run market supply curve.
Answer: C
Explanation:
This is the definition of the short-run market supply curve.
NEW QUESTION 809
A flag pattern is similar to a:
- A. head and shoulders pattern.
- B. pennant pattern.
- C. triangle pattern.
Answer: B
Explanation:
They are very similar to each other and have the same uses. The only difference is that in a pennant, the middle section is characterized by converging trendlines, much like what is seen in a symmetrical triangle. The middle section on the flag pattern, on the other hand, shows a channel pattern, with no convergence between the trendlines. In both cases, the trend is expected to continue when the price moves above the upper trendline.
NEW QUESTION 810
An index in which every company is assigned weight proportional to its market capitalization is called:
- A. Price-weighted indices
- B. Market-capitalization-weighted indices
- C. Equal-weighted indices
Answer: B
Explanation:
Firms with large market value have greater impact on the index than firms with small market value.
NEW QUESTION 811
Out of the last 154 times that the interest rates have been cut, the stock price of Company XYZ dropped 72 times. The probability that company XYZ's stock drops at the next rate cut is an example of what type of probability?
- A. classical or a priori
- B. subjective
- C. relative frequency or empirical
Answer: C
Explanation:
The correct answer is relative frequency or empirical since the probability of an event happening in the future is found by determining what fraction of the time the event occurred in the past.
NEW QUESTION 812
Zero-coupon bonds are bonds that
- A. have no coupon payment for a deferred period.
- B. are contracted to make periodic coupon payments.
- C. are not contracted to make periodic coupon payments.
Answer: C
NEW QUESTION 813
Consider the following information about a fund. The fund has been in existence for 3 years. Over this period it has achieved a mean monthly return of 3% with a sample standard deviation of monthly returns of 5%. It was expected to earn a 2.5% mean monthly return over the 3-year period.
The rejection point(s) at the 0.10 level of significance is/are:
- A. reject when t 1.690 or t > -1.690.
- B. reject when t 1.690 or t -1.690.
- C. reject when t > 1.690 or t -1.690.
Answer: C
Explanation:
In this case we look at p = 0.05 because the significance level given is 0.1 and 35 degrees of freedom (36-1). The value read from the table is 1.690 which determines the rejection point(s).
NEW QUESTION 814
The before-tax cost of debt capital for a firm _______.
- A. can be estimated by finding the yield on recently issued, longer maturity bonds with a lower bond rating.
- B. is the return that the firm's creditors demand on new borrowing.
- C. can be calculated by looking at the coupon rates on existing bonds of similar risk.
Answer: B
NEW QUESTION 815
Peter Chairly is a energy analyst with Tableless Brokers. He is invited by Vrich Energy to visit their oil fields in Siberia. Chairly stays at accommodation owned by Vrich adjacent to their oil fields, there being no other place to stay within hundreds of miles. Chairly visits the oil fields and chats with production supervisors. The accommodation and meals provided by Vrich are modest. Chairly returns from the trip and writes a report in which he gives a 'buy' rating to Vrich Energy.
- A. Peter is in violation of the Standards as he has accepted benefits from Vrich.
- B. Peter is in violation of the Standards as during his trip he put himself in a situation where he may have received non-material public information.
- C. Peter is not in violation of the Standards if after using his judgment he feels that the modest hospitality offered by Vrich did not compromise his independence.
Answer: C
Explanation:
As there is no other accommodation available, and the services provided modest, Chairly hasn't violated the Standards.
NEW QUESTION 816
The marginal revenue product will shift to the right if
- A. the productivity of the resource decreases.
- B. the price of the product falls.
- C. the quantity of other inputs working with the input increases.
Answer: C
Explanation:
An increase in the use of other inputs will increase the productivity of this input, e.g. labor which has more or better capital to work with. The marginal product of the input increases, and consequently so does the marginal revenue product. Decreased product price or decreased productivity will decrease marginal revenue product for any unit of input and shift the marginal revenue product curve to the left.
NEW QUESTION 817
A put option has a strike of $100, its premium is $7, and the stock is at $100. What is the intrinsic value?
- A. $0
- B. -$7
- C. $7
Answer: A
NEW QUESTION 818
The repurchase rate is 3.60% on a loan of 2 days for which $1,000,000 par value of a bond is sold to the lender at par. What is the repurchase price?
- A. $1,000,180
- B. $1,000,200
- C. $1,000,360
Answer: B
Explanation:
Repurchase price = original price x (rate x (m/360)+1) = $1,000,200
NEW QUESTION 819
How many three-digit numbers can you form using the digits 1, 3, 5, 7 and 9 without a repeating a digit within the number to be formed?
- A. 0
- B. 1
- C. 2
Answer: A
NEW QUESTION 820
A distribution has mean 75, median 80 and mode 85. The distribution is
- A. positively skewed
- B. symmetric
- C. negatively skewed
Answer: C
Explanation:
The mean is less than the median; the distribution is negatively skewed.
NEW QUESTION 821
Two basic assumptions of technical analysis are that security prices adjust:
- A. gradually to new information, and liquidity is provided by securities dealers.
- B. rapidly to new information, and market prices are determined by the interaction of supply and demand.
- C. gradually to new information, and market prices are determined by the interaction of supply and demand.
Answer: C
Explanation:
Technical analysis assumes that prices can be projected with charts and other technical tools.
NEW QUESTION 822
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CFA CFA-Level-I Real 2023 Braindumps Mock Exam Dumps: https://www.itexamreview.com/CFA-Level-I-exam-dumps.html
CFA-Level-I Exam Questions | Real CFA-Level-I Practice Dumps: https://drive.google.com/open?id=1QzR7huJkMs-QVWfr16Ytw15Q9MUsdPGF
