CFA 1 - 25 Questions

By entering into a currency swap both parties:
Which of the following situations least likely constitutes a violation of CFA Institute Code and Standards?
According to Standard I-A ‘Knowledge of Law’, members and candidates are required to:
Sammy Sneadle, CFA, is the founder and portfolio manager of the Everglades Fund. In its first year the fund generated a return of 30 percent. Building on the fund’s performance, Sneadle created new marketing materials that showed the fund’s gross 1- year return as well as the 3 and 5-year returns which he calculated by using back-tested performance information. As the marketing material is used only for presentations to institutional clients, Sneadle does not mention the inclusion of back-tested data. According to the Standards of Practice Handbook, how did Sneadle violate CFA Institute Standards of Professional Conduct?
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:
Which of these characteristics best describe commodity goods?
Lauren Sims, marketing director of Karma Advisors, planned a brief performance presentation in five different U.S states where majority of the firm’s clients are located, in celebration of Karma’s five years of success. In his presentation, Sims clearly includes references to the information presented and also prepared a detailed information report to support his brief presentation. At the conclusion, Sims provided the report only to the clients who requested it. By failing to provide the report to all the clients who attended the session, Sims:
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%?
Of the following, which represent the most significant advantage of real estate?
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?
Due to the upcoming elections in the U.S., the CAD/USD currency exchange rates has risen from 1.17 to 1.31. Calculate the percentage change in the value of the USD in terms of CAD.
Generating sufficient income and maintaining the real capital value of the fund are most likely the objectives of:
The joint probability of events A and B is 32 percent with the probability of event A being 60 percent and the probability of event B being 50 percent. Based on this information, the conditional probability of event A given event B has occurred is closest to:
Which type of financing is required for a leveraged buyout?
The short in a currency forward most likely:
Which of the following is most accurately considered a systematic risk?
Which of the following would most appropriately describe an investor's liquidity constraint?
Which of the following is not a suitable risk return measure for alternative investments?
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:
Which of the following statements least likely represents the correct treatment of impairment loss?
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).
Generating higher returns from security selection most likely depends upon:
Demand is most accurately described as:
Which of the following is impacted by inflation in the case of capital-indexed bonds?
For short selling purposes if a security is extremely hard to borrow, the short rebate rate may be:
CFA 1 - 25 Questions
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