100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
CFA Level 1 Study Guide Exam Questions and Answers $10.49   Add to cart

Exam (elaborations)

CFA Level 1 Study Guide Exam Questions and Answers

 9 views  0 purchase
  • Course
  • Institution

CFA Level 1 Study Guide Exam Questions and Answers What is the key assumption of technical analysis? - Answer-Market prices reflect both rational and irrational investor behavior What are the 4 different types of Oscillators? - Answer-1. Rate of Change Oscillator (100x the difference between ...

[Show more]

Preview 2 out of 6  pages

  • March 1, 2024
  • 6
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers
avatar-seller
CFA Level 1 Study Guide Exam
Questions and Answers
What are the 4 types of measurement scales? - Answer-1. Nominal Scales
2. Ordinal Scales (Assigned to a category)
3. Interval Scales (Relative ranking)
4. Ratio Scales (Equal differences between scale values)
NOIR

When do we use geometric and arithmetic means to analyze investment returns? -
Answer-Arithmetic Mean: To estimate next year's return
Geometric Mean: Measure of past performance

What are the 3 different types of probabilities? - Answer-1. Empirical Probability (Past
data)
2. Priori Probability (Formal reasoning)
3. Subjective Probability (Use of personal judgement)

What is the difference between time-series data and cross-sectional data? - Answer-
Time-Series: Data taken over a period of time
Cross-Sectional: Data taken at a single point in time

What are the 3 desirable properties of an estimator? - Answer-1. Unbiased (Expected
value of estimator is equal to the parameter)
2. Efficient (Variance of its sampling distribution is small)
3. Consistent (Accuracy of parameter estimate increases as sample size increases)

What are the steps of Hypothesis Testing? - Answer-1. State the hypothesis
2. Select the appropriate test statistic
3. Specify the level of significance
4. State the decision rule regarding the hypothesis
5. Collect the sample and calculate the sample statistics
6. Make a decision regarding the hypothesis
7. Make a decision based on the results of the test

What is a Type 1 and Type 2 Error? - Answer-Type I: Rejection of null when it is actually
true
Type II: Failure to reject null when it is actually false

What are the 3 reasons why statistical significance does not imply economic
significance? - Answer-1. Transaction Costs
2. Taxes
3. Risk

, What is the key assumption of technical analysis? - Answer-Market prices reflect both
rational and irrational investor behavior

What are the 4 different types of Oscillators? - Answer-1. Rate of Change Oscillator
(100x the difference between the latest closing price and the closing price n periods
earlier)
2. Relative Strength Index (Ratio of total price increases to price decreases)
3. Moving Average Convergence/Divergence
4. Stochastic Oscillator (Latest closing price and highest and lowest prices reached in a
period)

What are the different types of auctions? - Answer-1. English Auction (Ascending Price
Auction)
2. Vickrey Auction (Second Price Sealed Bid Auction)
3. Dutch Auction (Descending Price Auction)

What are the 3 rules of indifference curves? - Answer-1. Slope downward
2. Convex towards the origin
3. Curves cannot cross

Distinguish between Normal, Inferior, Giffen and Veblen Goods? - Answer-Normal:
Positive income effect
Inferior: Income effect is negative
Giffen: Negative income effect outweighs positive substitution effect
Veblen: Higher price makes the good more desirable

What are the 4 models of oligopoly? - Answer-1. Kinked Demand Curve Model (Only a
decrease in price will be followed by competitors)
2. Cournot Duopoly Model
3. Nash Equilibrium Model
4. Stackelberg Dominant Firm Model

What is necessary for price discrimination to work? - Answer-1. Face a downward-
sloping demand curve
2. Have at least two identifiable groups of customers with different elasticities
3. Be able to prevent reselling

What are the different economic theories of the business cycle? - Answer-1.
Neoclassical School (Driven by changes in technology)
2. Keynesian School (Cycles are due to swings in the level of optimism of business
owners)
3. Monetarist School (Cycles are caused by variations in the rate of growth of the
money supply)
4. Austrian School (Cycles are caused by government intervention)
5. Real Business Cycle Theory (Cycles are caused by changed in technology and
external shocks)

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller biggdreamer. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $10.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

67096 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$10.49
  • (0)
  Add to cart