Pass Authentic CFA CFA-Level-I with Free Practice Tests and Exam Dumps [Q11-Q27]

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December 12, 2022

Pass Authentic CFA CFA-Level-I with Free Practice Tests and Exam Dumps [Q11-Q27]

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Pass Authentic CFA CFA-Level-I with Free Practice Tests and Exam Dumps

New CFA-Level-I Exam Questions Real CFA Dumps

The benefit of Obtaining the CFA CFA-Level-I: CFA Institute CFA Level I Chartered Financial Analyst Certification

Instant reputation and industry recognition – creating opportunities for faster professional development
Your CV is going to stand out
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More profitable and more time than an MBA program

Topics of CFA CFA-Level-I: CFA Institute CFA Level I Chartered Financial Analyst Exam

Before preparation begins, candidates need to know the examination topics. And it’s going to help them to reach the center. CFA Level 1 exam dumps will include the following topics:

Ethical and Professional Standards
The focus of this topic is ethics, related challenges to ethical behavior, and the role ethics and professionalism play in the investment industry. We provide a framework to support ethical decision making and examine the CFA Institute Code of Ethics and Standards of Professional Conduct and Global Investment Performance Standards (GIPS).
Economics
Quantitative Methods
In this section, we explore quantitative concepts and techniques used in financial analysis and investment decision making. We present descriptive statistics for conveying important data attributes, such as central tendency, location, and dispersion, and introduce characteristics of return distributions. The section also considers probability theory and its application in quantifying risk for investment decision making.

In this section, we introduce analysis of fundamental concepts of supply and demand for individual consumers and firms. We also cover the various market structures that firms operate in as well as macroeconomic concepts and principles, including aggregate output and income measurement, aggregate demand and supply analysis, and analysis of economic growth factors. The section concludes with coverage of the business cycle and its effect on economic activity.

Fixed Income
In this topic, we explain how to describe fixed income securities and their markets, yield measures, risk factors, and valuation measurements and drivers. We also cover calculating yields, values of fixed income securities, the securitization of assets, the fundamentals of bond returns and risks, and basic principles of credit analysis.
Equity Investments
Here we explore the characteristics of equity investments, security markets, and indexes and explain how to analyze industries, companies, and equity securities as well as the use of basic equity valuation models. Global equities are important for meeting longer-term growth and diversification objectives.
Derivatives
In this section, we build the conceptual framework for understanding the basic derivatives and derivative markets. We then introduce essential features and valuation concepts for forward commitments such as forwards, futures, swaps, and contingent claims. Finally, we examine arbitrage, a critical concept that links derivative pricing to the price of the underlying asset.
Financial Reporting and Analysis
Here we provide a thorough explanation of financial reporting procedures and the standards that govern financial reporting disclosures, with an emphasis on basic financial statements and how alternative accounting methods affect those statements and the analysis of them. We examine primary financial statements and provide a general framework for conducting financial statement analysis.

Q11. A bell-shaped, symmetrical frequency distribution has a mean of 10. If 16% of the observations in the distribution are negative, what is the coefficient of variation of X?

0.1

1.0

10.0

The fraction of observations which are less than zero equals 16% i.e. the fraction of observations which are less than (mean – 10) equals 16% (given). Since the distribution is symmetrical about the mean, this implies that the fraction of observations which are more than (mean + 10) also equals 16%. Thus, the fraction of the observations lying between 0 and 20 equals 1-0.16-0.16 = 0.68. For a bell-shaped, symmetrical frequency distribution, 68% of the observations lie within one standard deviation of the mean. Hence, the standard deviation of the distribution equals 10. The coefficient of variation is then equal to standard deviation/mean = 10/10 = 1.

Q12. What is a company’s payables payment period if COGS are $200,000 and the average balance of accounts payable (AP) is $10,000?

18.25 days.

10.75 days.

11.33 days.

Payables turnover ratio = $200,000/$10,000 = 20 Payables payment period = 365/20 =
18.25 days

Q13. 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.

Only I is true

Only II is true

I and II are true

Q14. All of the following statements about accounting practices are true EXCEPT:

Violation of a long-term debt covenant will cause the debt to be classified as short-term debt if the condition is not reversed before the end of the accounting period.

Debt is considered to be extinguished if the firm places risk-free assets in an irrevocable trust solely for extinguishing that debt.

Commitments under unconditional purchase obligations that provide financing to suppliers need not be recognized on the purchaser’s balance sheet.

Q15. In an inverse head-and-shoulders pattern, the low price reached at the bottom of the head is $40 and the neckline is established at $50. The price objective for a technician would be:

$30.

$45.

$60.

50 + (50 – 40) = 60.

Q16. If the size of the sample being used is increased, then the width of a 0.95 confidence interval estimate for a population mean will:

Become narrower.

Become wider.

Not be changed.

Q17. The probability that the price of a stock increases is 0.30. The price of the stock will either increase or decrease each day independently of what happened on the previous day. An experiment consists of observing the price of this stock during a 30-day period. What are the expected value and the variance of the number of days that the stock price increases?

6.3, 9

9, 6.3

9, 15

Assume X denotes the random variable for the number of days that the stock price increases.
X ~ Bin(30, 0.3) therefore, E(X) = 30 x 0.3 = 9 and V(X) = 30 x 0.3 x (1 – 0.3) = 6.3.

Q18. What is the median of 26, 30, 24, 32, 32, 31, 27 and 29?

29.5

Ordering the numbers we have 24,26,27,29,30,31,32,32. Since there is an even number of observations (8), the median is the average of the two middle observations (29 + 30)/2 = 29.5.

Q19. An appreciation of the US dollar would ____ (increase, decrease, not affect) aggregate demand, and an increase in the real interest rate would ____ (increase, decrease, not affect) aggregate demand.

increase, decrease.

decrease, increase.

decrease, decrease.

An appreciation of the dollar would make U.S. goods and services more expensive to foreigners and would reduce exports. An increase in the real interest rate would depress domestic investment spending and spending on consumer durables such as automobiles and refrigerators.
Spending on U.S. exports, investment spending and consumer spending are components of aggregate demand.

Q20. According to Standards of Professional Conduct, as per Standard VII (B): Reference to CFA Institute, the CFA designation, and the CFA program, which of the following ways is NOT considered holding oneself out to be a CFA Charterholder?
I). Placing the designation “CFA” or “CFA Charterholder” after ones name on a resume.
II). Placing the designation “CFA” or “CFA Charterholder” after ones name on a business card, brochure etc.
III). Orally referencing oneself as a current/active/practicing CFA Charterholder.
IV). Displaying the CFA charter in an office or work environment.

III and IV.

I and II.

None of the above.

Holding one to be a CFA Charterholder includes:
Placing the designation “CFA” or “CFA Charterholder” after ones name on a resume,
*
business card, brochure etc.
Orally referencing oneself as a current/active/practicing CFA Charterholder, Or
*
Displaying the CFA charter in an office or work environment.
*

Q21. First National Bank finds itself in a situation where it is receiving fixed rate income from its loan portfolio and must pay floating rate expenses to its depositors. Which of the following plain vanilla interest rate swap payments would be of interest to the bank?
I). First National makes fixed rate payments
II). First National makes floating rate payments
III). First National receives floating rate payments

II only.

III only.

I and III.

Choice A would match fixed rate payments with the bank’s fixed rate income. Choice ‘c’ would match floating rate income with the bank’s floating rate payments.

Q22. Followers of technical analysis believe ALL of the following EXCEPT

there is no need to conduct fundamental analysis.

new information arrives randomly in the market.

it is important to move quickly or be one of the first to exploit trading opportunities.

Technical analysts believe that information does not arrive randomly and the market takes time to process it. With serial correlation in new information, trends develop that can be exploited. A trader does not have to be the first one to jump into the market as the price trend tells the trader which way the market is headed.

Q23. According to the code of ethics, members of CFA Institute shall:

Entice all qualified CFA’s to practice in a professional manner that will reflect credit on society as a whole.

Practice and encourage others to practice in an ethical manner that will reflect credit on the members of the profession.

Practice and encourage others to practice in a professional and ethical manner that will reflect credit on the members of the profession.

The Code of Ethics establishes the framework for ethical decision making in the investment profession.

Q24. Assuming all other factors remain unchanged, which one of the following would reduce a firm’s price/earnings ratio?

The dividend payout ratio increases.

Investors become less risk averse.

The yield on Treasury bills increases.

Q25. A two-asset portfolio with a standard deviation of zero can be formed when

the assets have a correlation coefficient equal to zero.

the assets have a correlation coefficient equal to one.

the assets have a correlation coefficient equal to negative one.

In this case the two assets move in opposite directions 100% of the time.

Q26. Using the rates of z1= 3.00%,1f1= 3.60%,1f2= 3.92%,1f3= 5.15%, compute the forward discount factor for period two.

0.9678

0.98377

1.03327

1/(1.015)(1.018) = 1/1.03327 = 0.9678

Q27. Stone, a financial analyst, follows the Amity Paving Company for his employer. Which one of the following scenarios is Stone least likely to have to disclose to his employer:

Stone’s participation on Amity’s board of directors.

Stone’s personal relationship with the CEO of Amity.

The fact that Stone’s son worked at Amity as a laborer during the summer while in school.

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