CFA 1 - 50 Questions

Which of the following is most accurate regarding a futures contract but not a forward contract?
When a company finances share repurchases with cash:
Which of the following most likely represents valid criticisms concerning the neoclassical and Austrian schools?
The debt-to-assets ratio is most accurately classified as a:
The financial leverage ratio of a firm, whose total debt ratio is 54% and debt-to- equity is 1.15, is closest to:
GIPS standards least likely resolve misleading practices related to:
A real exchange rate is different from a nominal exchange rate in that the real exchange rate:
A high-tech industry only has 3 large firms operating in it. This is most likely a:
Gilbert Love worked as financial analyst at Milton Securities. During his employment at Milton, Love covered Indigo Corp and developed detailed financial models, assumptions and supporting reports. When Milton switched his job, his new employer assigned him to analyze Indigo Corp. Milton developed a new model with improved assumptions and specifications and re-created the supporting records by gathering data from the covered company. Has Milton violated any CFA Institute Code and Standards?
Which of the following is least likely a macroeconomic influence that affects an industry’s growth? Changes in:
The production process of a calculator involves several steps. Suppose the pieces of the chain add the following value to the process: Raw materials supplier: $4 Factory: $3 Retailer: $2 The price that the retailer buys the calculator from the factory will be closest to:
Samuel Lopez wants to calculate the GDP or a specific country without taking into account the effect of inflation on prices. Which of the following is the most appropriate GDP measure Lopez should use?
A dealer has entered into an equity swap as the fixed-rate payer. The swap is based on the returns of the S&P500 index. On the last settlement date, the index fell by 2% due to a significant drop in the value of a few of its component stocks. On the last settlement date, the dealer would have to pay:
An investor purchases a 2-year zero-coupon bond with par value of $1,000 at $960. The implied interest earned on the bond is closest to:
In repurchase agreements, repo margin provides a margin of safety to the:
Demand is most accurately described as:
Jason Briggs purchased a 3-month call option by paying $0.08. The exercise price of the option is $1.32 while the underlying is priced at $1.35. Is the option currently in-the-money and at what price will break-even occur?
Identify the most appropriate explanation of ''channel stuffing''.
If you were offered to invest your money at interest rate of 4% and can choose how it is compounded, which compounding frequency would yield the highest effective return?
As of September 5, 2014, the current price of corn is $3.60 per bushel. Farmers have stopped asking if they will profit this year - the question now is how much will they lose for their year's work. Under which of the following 6-month futures corn prices would backwardation most likely be present?
Under which of the following cases is the capitalization of development cost most likely prohibited?
What would be a recommended action for a firm that has disclosed material non-public information in an analyst meeting?
As compared to firms with high degree of financial leverage, firms with high degree of operating leverage:
Under U.S. GAAP at the end of year 1, EBB would recognize $0 revenue, $0 cost of construction and $0 income. The $26 million expenditure would be recorded as an increase in inventory account and decrease in cash (if EBB paid cash for all expenditures).
Which of the following is least likely an (International Organization of Securities Commissions) (IOSCO) principle for issuers? Issuers should:
In which of the following circumstances can a producer of agricultural products value the product at the net realizable value (NRV)?
Investors have the tendency to be:
Zooror, a Japanese notepad maker, has an inventory turnover of 8.7 times per year. The average number of days of inventory for notepad manufacturing is 45 days. How does Zooror compare to its competition?
A high yield bond issuer has offered the ‘change of control put’ to its bondholders. Under this covenant in the event of acquisition, the bondholder has a (n):
What is the most likely result of a decrease in the risk-free rate of return on put and call option prices?
How does the oil the industry most likely maintain a premium pricing strategy?
A portfolio manager's small cap portfolio has a beta of 1.2 and standard deviation of 40%. Over the past year, the portfolio returned 10%, the market returned 7%, and the risk-free rate was 2%. The Sharpe ratio is closest to:
Which of the following would most appropriately describe an investor's liquidity constraint?
In the case of a collusion, firms agree to:
Generating higher returns from security selection most likely depends upon:
An investment management firm has been in existence for eight years. To enhance the quality of reported performance, the firm's senior compliance officer decides to make the firm's presented performance compliant with the GIPS standards. To comply with the GIPS standards, the firm is required to initially present a GIPS-compliant performance track record of: 2
A consumer with a steeper indifference curve most likely indicates that his marginal rate of substitution (MRSXY) is:
If the yield curve rises uniformly, how would the price of a 8.5% coupon bond yielding 2.75% most likely change in a year?
Bonds issued by special purpose vehicles most likely have a higher credit ratings than their sponsor's unsecured bonds because they:
Return on capital will most likely be higher in which of the following cases?
The performance of commodity indices can be quite different from their underlying commodities because
Which of the following statements is most likely correct regarding the depreciation of property, plant and equipment under IFRS and U.S. GAAP?
Which of the following statements regarding market efficiency is least likely accurate?
Which of these characteristics best describe commodity goods?
Investor A has a lower risk aversion than Investor B, and Investor C has a lower risk tolerance than Investor B. Which investor's optimal portfolio will most likely have the highest expected return on the capital allocation line?
The value, at 6% interest, of a bond paying 8% annual coupon payments, redeemable at par in 5 years, with a $25,000 face amount is closest to:
Which statement most accurately describes risk transfer and risk shifting?
A company has just issued $5 million of mandatory redeemable preferred shares with a par value of $100 per share and a 7 percent dividend. The issue matures in 5 years. Which of the following statements is least likely correct? The company’s:
A recently issued sovereign bond for a given maturity is also referred to as:
Reginald Fuller manages institutional portfolios on behalf of BDY Advisors. Fuller also manages an account of a trust company named SOTO Trust. The trust offered Fuller a $50,000 cash gift if he succeeded in achieving a 20% return this year. The best practice for Fuller includes:
CFA 1 - 50 Questions
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