» CFA 1 – 10 questions

Which of the following is least likely a macroeconomic influence that affects an industry’s growth? Changes in:

technologies.

interest rates.

inflation.

GIPS standards least likely resolve misleading practices related to:

analyst financial statement adjustments.

varying time periods.

survivorship bias.

Which of the following is the highest ranked unsecured debt?

Senior subordinated.

First lien loan.

Senior unsecured.

The four broad categories of hedge fund strategies identified by HFRI are:

Equity-driven, Market neutral, Arbitrage and Hedge strategies.

Event-driven, Equity driven, Relative value and Market neutral strategies.

Event-driven, Relative value, Equity hedge and Macro strategies.

The Sharpe Ratio measures'

return relative to standard deviation

beta

return relative to beta

A company recorded a depreciation expense of $5,000,000 for tax purposes and $3,500,000 for accounting purposes. Which of the following is the correct accounting treatment if the tax rate is 30%?

The firm reverse of a deferred tax liability of $450,000.

The firm should create a deferred tax liability of $450,000.

The firm should a deferred tax asset of $450,000.

An analyst makes the following comment regarding derivative contracts: “All derivative contracts must have an underlying, two parties – a buyer and a seller, and low degrees of leverage” The comment is most likely to be:

Incorrect with regard to the underlying.

Incorrect with regard to the parties.

Incorrect with regard to the low degrees of leverage.

Survivorship and backfill biases most likely cause hedge fund indices to be:

Understated

Overstated

Neither understated nor overstated.

Which of the following is most likely a correct implication of stock dividends to the shareholders?

Stock dividends positively affect the market value of shareholders’ wealth.

Generally stock dividends are taxable.

When stock dividends are paid shareholders’ cost per share held decreases.

A stock index representing U.S. manufacturing would most accurately be described as a:

Data mining

Examining investor biases

sector index.

CFA 1 - 10 Questions