CFA 1 - 10 Questions
When a monopolist charges each customer the highest price he/she is willing to pay, this is most accurately described as:
The four broad categories of hedge fund strategies identified by HFRI are:
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).
A stock index representing U.S. manufacturing would most accurately be described as a:
Mark Johnson is an analyst for Big Riches Investment Firm. He replaced Todd Phillips, who was an analyst with Big Riches, but resigned to move overseas. Phillips passed on all of his prior analytical reports and backup data for Johnson to use in his new role. In preparation for an annual valuation of the foodservice equipment industry, Johnson pulled up a valuation model developed by Phillips and changed it to include economic indicators published by the US Bureau of Economic Analysis. Once these revisions were made, Johnson back-tested the results using the S&P 500. Which of the following is most accurate?
Which of the following is a leading economic index?
Private equity investments tend to be:
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:
Determine the conversion value of a convertible bond if the conversion ratio is 7:3 and the market price of the bond is $30.
Anne Berry purchased an electric vaporizer to reduce the contamination in fruit juices in her plant. She paid $550,000 to the vendor and $4,000 to another company for the installation of the machine. She recorded the vaporizer in her books at $554,000. Which valuation method was adopted in this case?
CFA 1 - 10 Questions
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