CFA (CFA)

CFA Level 1 - Quantitative Methods Exam Questions with Complete Solutions Working Capital Management - Answer-The management of the company's short-term assets (such as inventory) and short term liabilities (such as money owed to suppliers). NPV Decision Rule - Answer-If the investments NPV is positive - Accept Project If the investments NPV is negative - Decline Project If the investor has 2 (Mutually Exclusive) projects - Accept the Higher NPV IRR Decision Rule - Answer-IRR is gr...

CFA Level 1 - Fixed Income Exam Questions with Correct Answers Coupon Rate Floor - Answer-Minimum periodic coupon interest payment received by lender/security owner. Coupon Rate Collar - Answer-Simultaneous combination of both cap and floor. Regular Redemption - Answer-When bonds are redeemed under the call provisions specified in the bond indenture. Special Redemption - Answer-When bonds are redeemed to comply with a sinking fund provision or because of a property sale mandated by...

CFA Level 1 – Economics Exam Questions and Answers (Definite Pass) When demand is less elastic than supply- consumers bear higher or lower burden - Answer-HIGHER When supply is less elastic than demand- consumers bear higher or lower burden - Answer-LOWER, suppliers will bear a higher burden Inelastic means more or less DWL - Answer-Less Three Constraints to Profit Maximization - Answer-TMI 1) Technological, 2) Informational, 3) Market Constraints Technological Efficiency - Answ...

CFA Assessment Test Questions and Answers The records also contained an account titled Retained Earnings. Based on this information the balance of the retained earnings account must be - Answer-$700 The following accounting equation represents the financial position of Qualtro Company. Based on this equation, Qualtro - Answer-Can pay a $300 cash dividend The following accounting equation represents the financial position of Bentley Company. Based on this equation, Bentley - ...

CFA 1 Exam Questions with Correct Answers Answers Latest Cobb, Inc., has hired Jude Kasten, CFA, to manage its pension fund. The client(s) to whom Kasten owes a duty of loyalty are: A. Cobb's management. B. the shareholders of Cobb, Inc. C. the beneficiaries of the pension fund. - Answer-C Standard III(A) Loyalty, Prudence, and Care specifies that for the manager of a pension or trust, the duty ofloyalty is owed to the beneficiaries, not to the individuals who hired the manager. Whi...

CFA Level 1 Study Guide Exam Questions and Answers What is the key assumption of technical analysis? - Answer-Market prices reflect both rational and irrational investor behavior What are the 4 different types of Oscillators? - Answer-1. Rate of Change Oscillator (100x the difference between the latest closing price and the closing price n periods earlier) 2. Relative Strength Index (Ratio of total price increases to price decreases) 3. Moving Average Convergence/Divergence 4. Stochasti...

CFA Level 1 Test Exam Questions and Answers The percentage changes in annual earnings for a company are approximately normally distributed with a mean of 5% and a standard deviation of 12%. The probability that the average change in earnings over the 5 years will be greater than 15.5% is closest to: A) 2.5% B) 5.0% C) 10% - Answer-A = 2.5% The standard error of a 5-year average of earnings changes is 12%√5=5.366.% 15.5% is 15.5−5/5.366=1.96 standard errors above the mean The pro...

CFA Level 2 Exam Questions and Answers (Graded A+) 2nd the cross-rate bids (offers) posted by a dealer must be lower (higher) than the implied cross-rate offers (bids) available in the interbank market. Recall that given exchange rate quotes for the currency pairs A/B and C/B, we can back out the implied cross rate of A/C, and that this implied cross-rate A/C must be consistent with the A/B and C/B rates. This again reflects the basic principle of arbitrage: If identical financial products ar...

CFA Study Guide Exam Questions with Complete Solutions Which of the following would be the analyst's most likely conclusion? - Answer-The company is becoming increasingly less solvent, as evidenced by the increase in its debt-to-equity ratio from 0.35 to 0.50 from FY3 to FY5. With regard to the data in Problem 6, what would be the most reasonable explanation of the financial data? - Answer-The decline in the company's equity indicates that the company may be incurring losses, paying div...

Welcome to this comprehensive CFA (Chartered Financial Analyst) Mock Exam document, meticulously designed to simulate the format, difficulty, and content of the actual CFA examinations. As a globally recognized credential, the CFA designation represents proficiency in investment management and financial analysis, and thorough preparation is essential for success. This mock exam provides candidates with an authentic testing experience, featuring a diverse array of questions spanning all relevant ...