Level 2 - Study guides, Class notes & Summaries

CFA Level 2

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 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 level1-Mock-120 Questions 1~18 Relate to Ethics ............................................................................................. 2 Questions 19~32 Relate to Quantitative analysis.................................................................. 8 Questions 33~44 Relate to Economics.................................................................................. 14 Questions 45~68 Relate to Financial Statement Analysis................................................... 18 Q...

CFA Level 1 Practice Exam Questions with Complete Answers Three steps to computing time-weighted returns - Answer-1) price the portfolio immediately prior to any significant addition or withdrawal of funds 2) calculate the holding period return on the portfolio for each subperiod 3) Link or compound holding period returns to obtain an annual rate or return for the year how to find time-weighted return - Answer-TWR= (Gmean P1)(Gmean P2)^1/2 - 1 dividend discount model formula - Answe...

CFA Level 1 Formulas Exam Questions with Correct Answers 95% confidence interval - Answer-+/- 1.96 SDs 99% confidence interval - Answer-+/- 2.58 SDs Z score - Answer-(x-mean)/SD Roy's safety first ratio - Answer-(E(Rp) - Rtarget)/SD Mean sampling error - Answer-mean - miu Standard error - Answer-SD/ sqrt (n) Confidence interval - Answer-x+/- z*(SD/sqrt(n)) Type 1 error - Answer-rejection of null hypothesis when it is actually true Type 2 error - Answer-Accepting the n...

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 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( Chartered Financial Analyst )Level I Mock Exam ||2023/2024 Test Bank||Questions & Answers Information about the coupon rates on the various long-term fixed-rate debt issues of a company can most likely be found in the: A notes to the financial statements. B non-current liabilities section of the balance sheet. C Management Discussion and Analysis (MD&A). - ANSWERS A is correct. Information about the coupon rates on the various long-term fixed-rate debt issues can usually be foun...