CFA Level 1 Final Test || Questions & All Correct Answers (Graded A+)
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Course
CFA - Chartered Financial Analyst
Institution
CFA - Chartered Financial Analyst
CFA Level 1 Final Test || Questions & All Correct Answers (Graded A+)
CFA Level 1 Final Test || Questions & All Correct Answers (Graded A+)
Nikki Ali and Donald Ankard borrowed $15,000 to finance their wedding and reception. The fully amortizing loan at 11% requires equal payments at the end of...
, CFA Level 1 Final Test || Questions &
All Correct Answers (Graded A+)
Nikki Ali and Donald Ankard borrowed $15,000 to finance their wedding and
reception. The fully amortizing loan at 11% requires equal payments at the end of
each of the next seven years. The principle portion of the first payment is closest to:
A) 1500
B) 1530
C) 1560 - ANSWER - B
The interest portion of the first payment is simply principal × interest rate = (15,000 ×
0.11) = 1,650.
Using a financial calculator: PV = 15,000, FV = 0, I/Y = 11, N = 7, CPT PMT= $3,183
Which of the following statements about probability distributions is least accurate?
A) Continuous uniform distributions have cumulative distribution functions that are
straight lines from 0 to 1.
B) The probability that a continuously distributed random variable will take on a
specific value is always 0.
C) A normally distributed random variable divided by its standard deviation will follow
a standard normal probability distribution. - ANSWER - C
A standard normal probability distribution has a mean of zero, so subtracting the
mean from a normal random variable before dividing by its standard deviation is
necessary to produce a standard normal probability distribution.
An analyst wants to construct a hypothesis test to determine whether the mean
weekly return on a stock is positive. The null hypothesis for this test should be that
the mean return is:
A) Greater than zero
B) Less than or equal to 0
C) Greater than or equal to 0 - ANSWER - B = Less than or equal to 0.
Null hypothesis = condition if rejected would lend evidence to true alternative
hypothesis.
Alternative = Mean is Greater than 0.
Null = Less than or = 0.
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