Which of the following statements is most accurate?

A type of credit derivative in which credit protection buyer makes a series of regularly scheduled payments to credit protection seller while the seller makes no payment until a credit event occurs is categorized as a:

Venture capital most commonly refers to:

The price of a good has gone down from $100 to $45. The demand for the good has gone from 10,000 units per day to 8,000 units per day. How would you best describe elasticity in the price of the good?

Asset based valuation models work well for companies that do not have a high proportion of:

Nisha Mazhar is a risk analyst, and she has been given the task to identify the factor that helps measure her organization's risk tolerance. Which of the following factors will help Mazhar complete her task?

Bonds issued by special purpose vehicles most likely have a higher credit ratings than their sponsor's unsecured bonds because they:

According to European Central Bank (ECB), debt securities with a maturity of up to two years are part of which of the following aggregate categories of money?

Investors have the tendency to be:

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?

The intercept of security characteristic line (SCL) is:

In which of the following circumstances can a producer of agricultural products value the product at the net realizable value (NRV)?

Which of these characteristics best describe commodity goods?

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:

DLF Ltd is an Indian company in the business of constructing residential houses. The proceeds derived from the residential houses by the company will most likely be recorded as:

Dan Fisher is an investment manager at Rotterdam Securities and often uses Topaz brokerage services for his clients. Corey Foster, Fisher’s client, has directed him to use the services of Luna Brokerage House for him. Fisher believes that Topaz offers best price and better research reports compared to Luna. The best course of action for Fisher is to use the services of:

By complying with GIPS standards firms cannot:

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:

A primary motivation for investment in commodities is most likely the:

Which of the following are most likely to be an exchange-traded transaction?

The debt-to-assets ratio is most accurately classified as a:

When inventories start to accumulate, the inventories-to-sales ratio reaches its above-normal level. Which phase of the business cycle is associated with an increased inventories-to-sales ratio?

Investor N agrees to pay Investor R $18,000 in 3 months for 5000 bushels of corn. Investor N and Investor R most likely entered into a(n):

In the case of a collusion, firms agree to:

In repurchase agreements, repo margin provides a margin of safety to the:

The distinction between items listed as current assets on a balance sheet and those listed as non-current assets is most likely based on differences in:

Which of the following properties of correlation and covariance is most likely correct?

Two hypothetical currencies – ABC and XYZ – are trading at a spot rate of 1.60 ABC/XYZ . If the interest rate in ABC and XYZ's countries are 7% and 5%, respectively, the arbitrage-free forward rate ABC/YXZ is closest to:

Determine the conversion value of a convertible bond if the conversion ratio is 7:3 and the market price of the bond is $30.

Alonzo Myers manages accounts at GRTY Securities. Jerry Reed, one of his clients, e-mailed Myers to buy 300 shares in the IPO of JJKS Corp’s stock. Few days later, despite being a hot issue, Myers succeeded prorating 500 shares of JJKS Corp. for his clients. After purchasing 500 shares for his clients and 300 shares for Reed as per request, he purchased remaining 200 shares for his wife. Myers:

Which of the following orders would most likely go unexecuted?

Private equity investments tend to be:

Which of the following is most accurate regarding a futures contract but not a forward contract?

Which of the following is least accurately considered a firm's factor of production?

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?

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).

Mathew Chambers manages individual accounts, including his father’s, at Harvey Securities. During a Sunday lunch at a restaurant with his friend Neil Rojas, Chambers noticed the directors of Navarro Motors sitting at the adjacent table. Rojas stated, “I believe Navarro has hired a new CEO as the firm is undertaking many positive amendments in its production process”. On Monday Chambers noticed a $1 increase in Navarro’s share price and purchased 500 shares for his father’s account. Chambers least likely violated:

If a European bank is looking to borrow money from another bank over a short term, it would be most likely to use which measure for the assigned rate?

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?

Under IFRS the definitional criteria for identifiable intangible assets most likely includes:

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 tariff directly benefits which of the following entities:

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:

You are testing the hypothesis that the equity risk premium is equal to 2.5%. Which of the following is the most appropriate alternative hypothesis?

Which of the following most likely represents valid criticisms concerning the neoclassical and Austrian schools?

Brodes is exploring new product opportunities. This particular line of business is about as systematically risky as Brodes's portfolio as a whole. How should Brodes best discount the present value of inflows and present value of outflows?

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?

During the morning section of the CFA Level 1 exam, when the proctor made the final 5 minutes announcement, Enrique, a candidate next to Rachael noticed and told Rachael that she was not filling her answers on the sheet provided. Rachael immediately started transferring answers on to the answer sheet. When the proctor made the final announcement Rachael succeeded filling 100 circles and by the time proctor reached at her table, she had only 5 circles left to fill. Rachael instantly handed her sheet to the proctor. Is Rachael or Enrique in violation of the standard relating to conduct as members and candidates in the CFA Program?

A financial intermediary buys a stock and then resells it a few days later at a higher price. Which intermediary would this most likely describe?

In a positively skewed distribution: