CFA 1 - 50 Questions
Which of the following would most accurately be considered a primary source of liquidity?
The current ratio and quick ratio are most appropriately used to assess what characteristic of a company?
What would be a recommended action for a firm that has disclosed material non-public information in an analyst meeting?
An investor wanting to purchase 100 shares of a publicly traded stock would most likely seek out:
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?
Asset based valuation models work well for companies that do not have a high proportion of:
What is the most likely result of a decrease in the risk-free rate of return on put and call option prices?
The New York Stock Exchange (NYSE) is the world's largest stock exchange. Companies whose shares are listed on the NYSE have a combined market capitalization of over $10 trillion. This exchange, where investors go to buy and sell stocks, is best classified as a:
When choosing one of two mutually exclusive projects, which is the preferred method?
Which of the following statements is most likely correct regarding the audit of financial statements?
Under which of the following accounting standards would a deferred tax be recognised on temporary differences arising from undistributed profits of associates (investments) when the investor controls the sharing of profit?
Which of the following statements is/are accurate? I. Differences in laws across countries determine different behavior between CFA members and candidates. II. Within the investment industry, a CFA member or candidate will always understand ethical behavior by strictly adhering to the laws of the country in which he/she operates.
Which of the following is a leading economic index?
Which of the following is defined as the latest sovereign bond issue for a given maturity?
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):
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?
Which of the following is least likely an (International Organization of Securities Commissions) (IOSCO) principle for issuers? Issuers should:
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:
Under IFRS cash receipt of interest cannot be classified as a (n):
Which of the following is considered as the major difference between a bond mutual fund and a money market fund?
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:
According to the Statement on Auditing Standards No. 99, Consideration of Fraud in a Financial Statement Audit, a risk factor related to opportunity exists when:
A recently issued sovereign bond for a given maturity is also referred to as:
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?
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:
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:
George Mendes is considering an employment offer made by DR Associates, an investment bank. Should Mendes accept the offer, he will be responsible for supervising twenty portfolio managers. Mendes' only concern is that employees' personal trades are not being adequately monitored and many of these transactions involve front-running clients' trades. To comply with the CFA Institute Standards of Professional Conduct, Mendes should most likely:
You are given: Price of corn today: $7.00 per bushel 1-year corn future: $8.00 per bushel Which of the following terms most accurately describes this environment?
Which of the following situations least likely constitutes a violation of CFA Institute Code and Standards?
On 1 January 2014, Neway Construction entered into a contract to lay pipes for a factory. The project will take an estimated two years to complete. As stated in the contract, total revenue for the project is an estimated $2,500,000. Total cost is expected to be 70% of revenue. Neway incurred $800,000 of costs in 2014. Assuming Neway estimates percentage complete based on costs incurred as a percentage of total estimated costs. Under the percentage-of-completion method, the revenue that will be reported in 2014 is closest to:
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:
Assuming the correlation between an asset and market is 0.67 and the asset and market have standard deviations of 0.34 and 0.19 respectively, the market beta would be closest to:
Which of the following is most likely common among the assumptions of the Ricardian model and Heckscher-Ohlin model?
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?
The auditors were not provided with the supporting documents for the majority of the transactions (including material transactions) selected for the audit. Which type of audit opinion should most likely be issued in such case?
As the degrees of freedom increases and the t-statistic approaches towards the z-statistic, the tails of the distribution most likely become:
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 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:
Which of the following is considered to be best practice from shareowners’ perspective?
Which of the following would most appropriately describe an investor's liquidity constraint?
The optimal capital budget occurs at the intersection of:
The performance of commodity indices can be quite different from their underlying commodities because
The type of chart drawn on a grid, which consists of column X’s alternating with column O’s and does not represent time or volume is most likely the:
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:
Demand is most accurately described as:
The financial leverage ratio of a firm, whose total debt ratio is 54% and debt-to- equity is 1.15, is closest to:
At initiation, the values of a swap contract and a forward contract are most likely to be:
McKinney Alpha is an accredited research firm that only hires experienced and competent analysts offering them training and financial courses from time to time. The firm allows analysts to either prepare their own research or rely on secondary sources. Tyler Klein, an analyst at McKinney uses a research report prepared at Gemma Brokerage. If Klein will use that report, he will:
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:
In the event of bankruptcy, which of the following is most accurate?
CFA 1 - 50 Questions
{{userScore}} / {{maxScore}}
{{title}}
{{image}}
{{content}}