CFA 1 - 25 Questions

Which of the following is most likely to be correct with respect to American-style options?
Which of the following is most accurate regarding a futures contract but not a forward contract?
Comel Systems, Inc. is exploring entering a new product line. This particular line is significantly riskier (both generally and systematically) than the other lines. If Comel's weighted average cost of capital is 8.0%, the rate it should use in assessing the new product line is most likely:
Which of the following would most accurately be considered a primary source of liquidity?
Which of the following statements regarding the Markowitz efficient frontier is least likely to be correct? The optimal portfolio for:
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?
Which of these characteristics best describe commodity goods?
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:
Determine the impact on domestic exports of a country through its transmission mechanism if its interest rates decrease?
The elements directly related to measurement of financial performance least likely include:
When choosing one of two mutually exclusive projects, which is the preferred method?
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?
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?
Anita Vizquel, CFA, is a sole practitioner providing investment advisory services. Based on extensive and ongoing research, Vizquel believes that Viatex Brokerage provides the best execution at a competitive price and she uses the firm for the majority of her clients' trades. In recognition of her loyalty, Viatex provides Vizquel with soft dollar commissions in the form of research reports that Vizquel finds very relevant for some, but not all, of her clients. Has Vizquel violated the CFA Standards?
Two mutually exclusive projects can best be evaluated and selected considering
Which of the following is least likely an (International Organization of Securities Commissions) (IOSCO) principle for issuers? Issuers should:
Blanco Shell Investments (BSI) is a small family owned investment bank and its shares are relatively illiquid. In a casual meeting Brett Palmer, managing director at BSI, told his friend, Leon Fox, that BSI is going to earn substantial profits in its commodities business. In the next few days Fox purchases BSI shares while Palmer disposes his position in BSI and switches his job. Two months later BSI announces huge losses in its commodities business and the share price decreases by $2. Palmer has violated the CFA Institute Standards of Professional Conduct concerning
Under which of the following situations would an increased return on equity (ROE) more likely be perceived negatively by shareholders?
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:
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:
The intercept of security characteristic line (SCL) is:
The financial leverage ratio of a firm, whose total debt ratio is 54% and debt-to- equity is 1.15, is closest to:
For rating agencies, the primary factor in assigning their ratings is:
The current ratio and quick ratio are most appropriately used to assess what characteristic of a company?
To determine the impact of changes in exchange rates on trade balance, the ‘absorption approach’ most likely exhibits the:
CFA 1 - 25 Questions
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