CFA Level 1 Comprehensive Final Exam || With Complete Questions & Answers (100% Accurate)
9 keer bekeken 0 keer verkocht
Vak
CFA - Chartered Financial Analyst
Instelling
CFA - Chartered Financial Analyst
CFA Level 1 Comprehensive Final Exam || With Complete Questions & Answers (100% Accurate)
CFA Level 1 Comprehensive Final Exam || With Complete Questions & Answers (100% Accurate)
If a company is liquidated, proceeds from asset sales are distributed to common shareholders:
A before unsecured ...
, CFA Level 1 Comprehensive Final
Exam || With Complete Questions &
Answers (100% Accurate)
If a company is liquidated, proceeds from asset sales are distributed to common
shareholders:
A before unsecured debt investor and preferred shareholder, claims are paid
B after secured debt investor and preferred shareholder, claims are paid
C after preferred shareholder claims are paid but before unsecured debt investor
claims are paid - ANSWER - B
An analyst collects the following information about an investment's returns over the
last 24 months: Mean return = 18% Standard deviation of returns = 12% Given a
risk‐free rate of 5%, the Sharpe ratio for this investment is closest to:
A 2.6
B 0.92
C 1.083 - ANSWER - C
Susan estimates that the probability of the stock market rising in value over 2010 is
40%. The odds that she would offer against the market rising are closest to:
A 2 to 3
B 3 to 5
C 3 to 2 - ANSWER - C
Which of the following is not a sovereign bond issue?
A State of New York municipal bond
B US Treasury note
C German bund - ANSWER - A
Which of the following bonds contains an embedded option that provides the issuer
certain rights?
A Putable bond
B Callable bond
C Convertible bond - ANSWER - B
At which stage in the trading process is cash exchanged for securities between
parties in a given security trade?
A Settlement
B Confirmation
C Clearing - ANSWER - A
A consumer pays off a car loan held by a bank with which he has no other business.
Which of the following is the most appropriate document management practice for
the bank to follow?
A Return all documents to the consumer
B Shred all documents related to the transaction
C Determine which documents to retain and which to dispose of - ANSWER - C
,Diversification will not help reduce a portfolio's:
A systematic risk
B specific risk
C overall risk - ANSWER - A
Compared with passive investment management, active investment management
will involve:
A tracking a benchmark
B market timing
C lower transaction costs - ANSWER - B
Which of the following is not a factor to consider in a document classification
system?
A Direction in which documents flow
B Ensuring that all documents are standardized
C Source of the document - ANSWER - B
A fund manager's alpha is that part of the fund's return that can be attributed to:
(a) the market
(b) skill
(c) luck - ANSWER - B
Which of the following is considered an institutional investor?
(a) Accredited investor
(b) Sovereign wealth fund
(c) Separately managed account - ANSWER - B
A limitation of the value at risk (VaR) approach to measuring risk is that it fails to
specify:
(a) the probability that a loss could occur
(b) a time frame for potential losses
(c) the maximum loss that could occur - ANSWER - C
The possibility that a portfolio manager will lose money because the bond valuation
model he uses is flawed is an example of:
A operational risk
B investment risk
C compliance risk - ANSWER - A
A fund manager does not compare his portfolio with the benchmark in terms of:
A performance
B composition
C fees - ANSWER - C
Phil Jones, CFA, has just finished researching Alpha One Inc. and is about to issue
an unfavorable report on the company. His manager does not want him to state any
adverse opinions about Alpha One, as it could adversely affect their firm's relations
with the company, which is an important investment banking client. Which of the
, following actions by the manager most likely violates Standard I (B): Independence
and Objectivity?
A Putting Alpha One on a restricted list
B Asking Jones to issue a favorable report
C Asking Jones to only state facts about the company - ANSWER - B
Which of the following is least likely a violation of Standard I (D): Misconduct?
A Engaging in frequent fights on the trading floor
B Offering higher-quality services to certain clients
C Getting intoxicated during office hours - ANSWER - B
Martha Stevens, CFA, is an investment manager who uses her friend, Robert
James, exclusively for her clients' brokerage transactions. James provides better
services than other brokers in return for a slightly higher price, which Stevens
believes is justified. Which of the following statements is most accurate?
A Stevens is in violation of Standard III (A): Loyalty, Prudence and Care.
B Stevens is in violation of Standard III (B): Fair Dealing.
C Stevens has not violated any standard. - ANSWER - C
Alexis King, CFA, an investment manager at Invest One Corporation, is asked by her
supervisor to make a presentation to a potential client. In the presentation, King uses
weighted composites of all similar portfolios to present the firm's performance over
the past 10 years, during which the firm earned an average return of 13%. Which of
the following statements is most accurate?
A King has violated Standard III (D): Performance Presentation.
B King has violated Standard I (C): Misrepresentation.
C King has not violated any standards. - ANSWER - C
Frank Henry, CFA, works as an investment manager at Beta Financials. One of his
clients offered him a free trip to Mauritius for excellent performance, which Henry
accepted. Henry's boss recently learned about this arrangement from another
employee, but did not do anything about the arrangement, as the client was very
important to the firm. Which of the following is most likely?
A Henry violated Standard IV (B): Additional Compensation Arrangements.
B Henry's boss violated Standard IV (C): Responsibilities of Supervisors.
C Henry violated Standard IV (B): Additional Compensation Arrangements and his
boss violated Standard IV (C): Responsibilities of Supervisors. - ANSWER - C
Which of the following is least likely a violation of Standard V (B): Communication
with Clients and Prospective Clients?
A An analyst recommends an investment to a client without going into specific details
because she feels that the client would not be able to understand the complex
models involved.
B An analyst divulges confidential information about current clients to prospective
clients.
C An analyst states his strong beliefs as facts in a research report. - ANSWER - B
Which of the following is most likely a violation of Standard III (B): Fair Dealing?
A An analyst emphasizes the high returns of a trading strategy to a client without
providing detailed information about the strategy.
Voordelen van het kopen van samenvattingen bij Stuvia op een rij:
Verzekerd van kwaliteit door reviews
Stuvia-klanten hebben meer dan 700.000 samenvattingen beoordeeld. Zo weet je zeker dat je de beste documenten koopt!
Snel en makkelijk kopen
Je betaalt supersnel en eenmalig met iDeal, creditcard of Stuvia-tegoed voor de samenvatting. Zonder lidmaatschap.
Focus op de essentie
Samenvattingen worden geschreven voor en door anderen. Daarom zijn de samenvattingen altijd betrouwbaar en actueel. Zo kom je snel tot de kern!
Veelgestelde vragen
Wat krijg ik als ik dit document koop?
Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.
Tevredenheidsgarantie: hoe werkt dat?
Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.
Van wie koop ik deze samenvatting?
Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper conceptialresearchers. Stuvia faciliteert de betaling aan de verkoper.
Zit ik meteen vast aan een abonnement?
Nee, je koopt alleen deze samenvatting voor €17,68. Je zit daarna nergens aan vast.