CFA-Level-I Dumps To Pass CFA Level Exam in One Day (Updated 2200 Questions)
CFA-Level-I Exam Brain Dumps - Study Notes and Theory
CFA CFA-Level-I: CFA Institute CFA Level I Chartered Financial Analyst Certified Professional Salary
Salaries for CFA level 1 Certified Professionals may vary by country. The estimated salaries of a CFA level 1 exam test given below:
United States: 15,000 USD
England: 78,000 Pounds
Europe: 92,000 Euro
India: 7,15,437 INR
How much CFA-Level-I: CFA Institute CFA Level I Chartered Financial Analyst Exam cost
The price of the CFA Level 1 exam is $700. For more information related to exam price, please visit the official website CFA Website as the cost of exams may be subject to vary county-wise. Our CFA Level 1 pdf dumps include answers of questions that are similar of the true CFA Level 1 exam.
How to Prepare For CFA CFA-Level-I: CFA Institute CFA Level I Chartered Financial Analyst Exam
Preparation Guide for CFA CFA-Level-I: CFA Institute CFA Level I Chartered Financial Analyst Exam
Introduction
The Chartered Financial Analyst is one of the most common designations for investment professionals (CFA). However, it is not for the weak of heart or people who are not interested in being a CFA cardholder. The journey to becoming a CFA holder is long and measures not only the competence but also the strength, dedication and stamina of the topic. According to the CFA Institute, the present curriculum is ideally described as a distance learning programme at its own rate which adopts a general approach to the study, evaluation and management of portfolios which highlights the highest ethical and technical expectations. The CFA curriculum includes three examinations: CFA Level I, Level II and Level III. The CFA applicants must pass both of these exams and they must fulfil certain work requirements defined by the CFA Institute. In December 2017, the progress rate for the Level I exam was 43 percent. For each of these three stages, the curriculum is designed to assess a broad range of skills that are most appropriate for investing professions. In this post, we will focus on the Level I CFA review. CFA Level 1 dumps and CFA Level 1 practice tests are designed to render the entire examination environment comfortable for the students.
NEW QUESTION 1027
In 2001, a portfolio with 6 stocks had the following total return rates in percentages:27.98%, 44.94%,
54.53%, -52.68%, 10.21%, 0.50%. The average return rate for this portfolio was 4.92% and the standard deviation was 37.66%. How confident are you that the return rates will fall within -51.57% and 61.41%?
- A. 85%
- B. 75%
- C. 56%
Answer: C
Explanation:
-51.57% is 1.5 standard deviations below the mean and 61.41% is 1.5 standard deviations
2
above the mean. Therefore, we are confident that 1 - 1/1.5 = 56% of the return rates will fall within the specified range (Chebyshev's Inequality).
NEW QUESTION 1028
The present value of a 4 year ordinary annuity of $1000 per year starting in year 1 is the difference of
2 perpetuities.
Perpetuity 1 : $1000 per year starting in Year 1
Perpetuity 2: $1000 per year starting in 5 years time.
Given a 5% discount rate, the present value of this annuity is
- A. $5,525.63.
- B. $16,454.05.
- C. $3545.95.
Answer: C
Explanation:
The first payment for Perpetuity 1 is at t = 1 The first payment for Perpetuity 2 is at t = 5 The formula for the present value of a perpetuity is PV = A/r, where A = the annuity, and r = the rate. This formula is simple enough to use directly on your calculator. For Perpetuity 1, PV at t = 0 is = 1000/0.05 =
2 0,000 For Perpetuity 2, we need to find the present value at t = 0. To do so, we need to first find the present value at t = 5-1 = 4 since an ordinary annuity has its first payment one period away. This also applies to a perpetual annuity. A = 1000, r at period 5 = 0.06. Thus, PV = 1000/0.05 = 20,000. From the perspective of now i.e. t = 0, this amount of 20,000 can be considered a future value. Thus we now need to find the present value of this amount.
Using Texas Instruments BA II Plus: Don't forget to clear your memories using 2nd QUIT and 2nd CLR
WORK 20000 +- FV: FV = -20,000.00 4 N: N = 4.00 5 I/Y: I/Y = 5.00 CPT PV7: PV = 16,454.05
Using Hewlett Packard hp 12 C f CLEAR FIN: 0.00000000 f CLEAR REG: 0.00000000 4 n: 4.00000000 5 i: 5.00000000 20000 CHS FV: - 20,000.00000 g END: - 20,000.00000 PV: 16,454.04950
The present value of the 4 - year annuity is x - PV(0) = 20,000 - 16,454.05 = 3,545.95.
NEW QUESTION 1029
Which of the following factors is not an explanation of the positive relationship between market price and quantity supplied?
I). The law of diminishing returns makes it more costly for firms to expand output quickly.
II). As all firms in an industry hire more factors of production, the prices paid for them often increase.
III). For most firms, unit costs decrease as output increases in the long run.
IV). As price increases, some less efficient firms will enter the market.
- A. I and II.
- B. III only.
- C. III and IV.
Answer: B
Explanation:
If unit costs decreased as output increased, this would imply that firms would allow prices to fall as they expanded output. Under an increasing cost industry, the firm requires a higher price in order to expand output because its costs increase. This explains the positive relationship between price and level of output.
NEW QUESTION 1030
Which of the following will increase the aggregate demand?
I). Higher prices in stock market.
II). Higher prices in real estate market.
III). Higher real wealth.
- A. III only.
- B. None of them. They will increase the quantity of aggregate demand but not the aggregate demand itself.
- C. I, II, III.
Answer: C
Explanation:
Increase in stock and housing prices increases real wealth of households, and thus increases the aggregate demand.
NEW QUESTION 1031
If the government regulates a natural monopoly through a policy of average-cost pricing, we would expect that, compared to an unregulated natural monopoly,
- A. prices would be lower and output would be higher.
- B. prices would be higher and output would be lower.
- C. prices would be lower and output would be lower.
Answer: A
Explanation:
Governments regulate natural monopolies in order to reduce prices and increase output.
Average-cost pricing, however, always provides the firm with no incentives to control costs, so average costs increase.
NEW QUESTION 1032
Assume that you are analyzing a plain vanilla interest rate swap with the following characteristics:
Counterparty X : Counterparty Y pay fixed rate 6% : pay floating rate LIBOR + 0.5% receive floating rate
LIBOR + 0.5% : receive fixed rate 6% Swap tenor: 10 years Notional principal: $1,000,000 LIBOR0:
4 .75%
If this were an "in-advance" swap, Counterparty X would make its first fixed rate payment at the time the swap is negotiated. The amount of the payment would be:
- A. $52,500
- B. $60,000
- C. $57,279.24
Answer: C
Explanation:
In this case, the first payment would be the present value of the "in arrears" amount, discounted at LIBOR. (1,000,000)(.06)/ (1.0475)1 = 57,279.24
NEW QUESTION 1033
Bridget's Midget Widget
Gross margin:
- A. Has decreased as a percentage of sales.
- B. Has increased as a percentage of sales.
- C. Has stayed the same, with rising sales offset by decreasing cost of goods sold.
Answer: B
NEW QUESTION 1034
When the market is in backwardation, the roll yield will be ______ for a hedger.
- A. zero.
- B. negative.
- C. positive.
Answer: B
Explanation:
The long investor can buy the commodity below the current spot level from a hedger when it's time to roll forward the maturity of the derivatives position.
NEW QUESTION 1035
Consider the following conditions of beginning inventory and the stated results:
Beginning Cost of Inventory Goods Sold Net Income
- A. Understated Understated Understated
- B. Condition C
- C. Overstated Overstated Understated
Which condition is true with regard to the beginning inventory, assuming FIFO is used? - D. Condition A
- E. Overstated Overstated Overstated
- F. Condition B
Answer: B,C
Explanation:
When beginning inventory is overstated, inventory costs assigned to the cost of goods sold will be overstated and consequently the net income will be understated.
NEW QUESTION 1036
You have $10,000 in a savings account paying 5% per year. You wish to make a withdrawal of
$ 709.52 at the end of every year. After all the withdrawals are made, the account will have a zero balance.
How many withdrawals can you make?
- A. 0
- B. 1
- C. 2
Answer: A
Explanation:
By calculator: PMT = $709.52; i = 5%; PV = -$10,000.00; CPT n = 25
NEW QUESTION 1037
Arbitrage opportunities in the market for currency swaps are:
- A. scarce
- B. plentiful but difficult to exploit
- C. becoming more and more plentiful
Answer: A
Explanation:
Arbitrage opportunities in the market for currency swaps are scarce.
NEW QUESTION 1038
If the one month exchange rate $:E(EUR) is 0.7928-30, this implies:
- A. the bank is willing to commit itself today to buy dollars in one month for E(EUR)0.7928 or to sell them for
E(EUR) 0.7930. - B. the bank is willing to commit itself today to sell dollars in one month for E(EUR)0.7928 or to buy them for
E(EUR) 0.7930. - C. the bank is willing to commit itself today to buy dollars for E(EUR)0.7928 or to sell them for E(EUR)0.7930.
Answer: A
Explanation:
In a forward, or futures, contract, a commitment is irrevocably made on the transaction date, but delivery takes place later, here a month later. The bid-ask quotation here implies that the bank is willing to commit itself today to buy dollars in one month for E(EUR)0.7928 or to sell them for E(EUR)0.7930.
NEW QUESTION 1039
A client will move his investment account unless the portfolio manager earns at least a 10 percent rate of return on the account. The rate of return for the portfolio the portfolio manager has chosen has a normal probability distribution with an expected return of 19 percent and a standard deviation of 4.5 percent. What is the probability that the portfolio manager will keep this account?
- A. 1.000
- B. 0.975
- C. 0.950
Answer: B
Explanation:
As a rule of thumb, two standard deviations produce a 95% confidence level. Since this question presents a one-tailed test, the probability of falling below the expected value by two standard deviations is 2.5%. Confidence interval = (19% - 10%)/4.5% = 2 standard deviations The frequency of outcomes two standard deviations less than the expected return is 2.28%. Hence, Probability of keeping the account = 1.0000 - 0.0228 = 0.9772, closest to 0.975.
NEW QUESTION 1040
The major differences between a warrant and a call option are:
I). Warrants are contracts outside of the firm while options are within the firm
II). Warrants have long maturities while options are usually short maturities
III). Warrant exercise dilutes the value of equity while option exercise does not
- A. I and II.
- B. II and III.
- C. I and III.
Answer: B
NEW QUESTION 1041
Olivia Hernandez's clients have substantial holdings of US consumer goods manufacturer PXG Ltd.
PXG has sales primarily in North America and Europe. Hernandez reviews research reports about the dollars euro exchange rate, which mostly predict that the dollar will get more expensive thus hurting
PXG's exports to Europe . She speaks with representatives of PXG and visits PXG factories where she meets production managers. Finally she visits retailers where she learns that over the last month many customers have expressed their dissatisfaction with PXG products. After reviewing her information,
Hernandez sells her clients' PXG holdings.
- A. Hernandez has violated Standard II (A) Material Nonpublic Information by using information she received from PXG's representatives and production managers.
- B. Hernandez has violated Standard III (C) Suitability by having a substantial portion of her client's wealth invested in PXG
- C. Hernandez has not violated the Standards.
Answer: C
NEW QUESTION 1042
What is the probability that a value of 30 or more will be observed from a normal distribution with a mean of 15 and standard deviation of 25?
- A. 27.4%
- B. 60%
- C. 50%
Answer: A
Explanation:
We need to calculate the standard normal variance, z = (30 - 15)/25 = 0.60. From the standard normal tables, Prob(z = 0.60) = 0.7257. Thus, Prob(z >= 0.60) = 1 - 0.7257 = 0.2743, or 27.4%.
NEW QUESTION 1043
A temporary difference is one that:
- A. is caused by an item not taxable on the tax return but included in pretax accounting income
- B. represents the difference between the tax basis of an asset or a liability and its reported balance sheet amount and that is expected to result in taxable or deductible amounts in future years
- C. is caused by an item not deductible for tax purposes but used in computing financial reporting income
Answer: B
Explanation:
A temporary difference is one that is caused by using different methods on the tax return and the financial accounting records, such that the basis for the affected asset and liability is different over the life of the asset or liability. The difference is temporary because it will reverse by the end of the life of the asset or liability.
NEW QUESTION 1044
A long-term asset is different from inventory primarily because:
- A. A long-term asset has physical substance.
- B. A long-term asset is used in operations and not for resale.
- C. A long-term asset is long-term in nature.
Answer: B
NEW QUESTION 1045
According to GAAP, a separate value must be assigned to the equity feature included with the following debt securities:
I). Convertible Bonds.
II). Bonds Issued with Warrants.
- A. I and II.
- B. II only.
- C. none of these answers.
Answer: B
Explanation:
When convertible bonds are sold, all of the proceeds are assigned to the liability. When bonds with warrants are sold, a portion of the proceeds is assigned to equity.
NEW QUESTION 1046
A current account surplus reflects:
- A. high domestic private savings and investment, and government deficit.
- B. high domestic private savings and investment, and government surplus.
- C. high domestic private savings, low domestic investment, and government surplus.
Answer: C
Explanation:
CA = Sp + Sg - I.
NEW QUESTION 1047
As an analyst, you are concerned about whether Arcadian Manufacturing Co. can generate a stream of inflows sufficient to pay interest expense. In the last three quarters, Arcadian's operating cash flows have been decreasing, but its operating profits have been increasing. Which one of the following ratios is the best one to use in this situation?
- A. Days receivables outstanding
- B. Cash flow coverage ratio
- C. Interest coverage ratio
Answer: B
Explanation:
The cash flow coverage ratio (operating cash flows before interest and tax payments/interest paid) discloses whether operating cash flows will be sufficient to pay interest on debt. Since the operating cash flows are decreasing, this ratio provides a more conservative result and is more appropriate to use than accrual based operating profit.
NEW QUESTION 1048
Assume that Able Corporation has paid and expensed several speeding fines for its salespeople.
Fines are never deductible for tax purposes. This will result in which of the following?
- A. Taxable temporary difference and future income tax asset.
- B. No temporary difference.
- C. Taxable temporary difference and future income tax liability.
Answer: B
Explanation:
When an expense is not deductible for tax purposes, it is a permanent difference and therefore, there is no temporary difference at all. This amount is eliminated when calculating the accounting income subject to tax.
NEW QUESTION 1049
Which of the following statements regarding the efficient frontier are incorrect?
I). Efficient frontier represents that set of portfolios that provides the maximum rate of return for every given level of risk.
II). Efficient frontier provides the maximum risk for each level of return.
III). Points along the efficient frontier dominate all points beneath the curve.
IV). Points along the curve to the right of any other point on the curve must have a higher expected return and higher level of risk.
- A. II and IV.
- B. II only.
- C. I and III.
Answer: B
Explanation:
The efficient frontier provides the minimum risk for each level of return. Points along the efficient frontier dominate all points beneath the curve and must have an increasing expected rate of return as they move along the curve to the right. The expected risk level also corresponds with movement to the right.
NEW QUESTION 1050
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