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CFA Level 1 Questions With Complete Solutions Latest Update

CFA Level 1 Sample Questions with 100% Correct Answers Which of the following government actions will most likely lead to an increase in the level of aggregate demand? A reduction in: A transfer payments B public spending on social goods and infrastructure C the capital gains tax - Answer-C If Mexico is running a large current account deficit with Canada, which of the following will most likely occur? A Canada will reduce its imports from Mexico B The Mexican peso will deprecia...

CFA Level 1 - Fixed Income Exam Questions with Correct Answers Coupon Rate Floor - Answer-Minimum periodic coupon interest payment received by lender/security owner. Coupon Rate Collar - Answer-Simultaneous combination of both cap and floor. Regular Redemption - Answer-When bonds are redeemed under the call provisions specified in the bond indenture. Special Redemption - Answer-When bonds are redeemed to comply with a sinking fund provision or because of a property sale mandated by...

Allen Jabber invested $400 at the beginning of the last 12 months in the shares of a mutual fund that paid no dividends. Which Method will he correctly choose to calculate his average price per share from the monthly share prices? a) Arithmetic Mean b) Harmonic Mean c) Geometric Mean - Harmonic Mean - The harmonic mean of the 12 purchase prices will be his average price paid per share. Colonia has 2 political parties, the Wigs and the Wags. If the Wags are elected there is a 32% probabili...

Sharon Fields, CFA, provides her two weeks' notice and prepares over the next two weeks to transition into her own business. She clears her personal computer of contacts and turns over all client records to her employer. Her contract requires a two-year waiting period before contacting clients located in her client file. After her final day with her employer, she updates her personal pages on social media sites and promptly receives several calls and inquiries for her services from former c...

CFA Level 1 – Economics Exam Questions and Answers (Definite Pass) When demand is less elastic than supply- consumers bear higher or lower burden - Answer-HIGHER When supply is less elastic than demand- consumers bear higher or lower burden - Answer-LOWER, suppliers will bear a higher burden Inelastic means more or less DWL - Answer-Less Three Constraints to Profit Maximization - Answer-TMI 1) Technological, 2) Informational, 3) Market Constraints Technological Efficiency - Answ...

CFA Level 1 Test Exam Questions and Answers The percentage changes in annual earnings for a company are approximately normally distributed with a mean of 5% and a standard deviation of 12%. The probability that the average change in earnings over the 5 years will be greater than 15.5% is closest to: A) 2.5% B) 5.0% C) 10% - Answer-A = 2.5% The standard error of a 5-year average of earnings changes is 12%√5=5.366.% 15.5% is 15.5−5/5.366=1.96 standard errors above the mean The pro...

CFA Level 1 Exam Questions with Complete Solutions A standard normal probability distribution has a mean of zero, so subtracting the mean from a normal random variable before dividing by its standard deviation is necessary to produce a standard normal probability distribution. An analyst wants to construct a hypothesis test to determine whether the mean weekly return on a stock is positive. The null hypothesis for this test should be that the mean return is: A) Greater than zero B) Les...

CFA Level 1 Formulas Exam Questions with Correct Answers 95% confidence interval - Answer-+/- 1.96 SDs 99% confidence interval - Answer-+/- 2.58 SDs Z score - Answer-(x-mean)/SD Roy's safety first ratio - Answer-(E(Rp) - Rtarget)/SD Mean sampling error - Answer-mean - miu Standard error - Answer-SD/ sqrt (n) Confidence interval - Answer-x+/- z*(SD/sqrt(n)) Type 1 error - Answer-rejection of null hypothesis when it is actually true Type 2 error - Answer-Accepting the n...

CFA Level 1 Q&A Entire Exam + Explanation | Questions with 100% Correct Answers | Updated & Verified Sharon Fields, CFA, provides her two weeks' notice and prepares over the next two weeks to transition into her own business. She clears her personal computer of contacts and turns over all client records to her employer. Her contract requires a two-year waiting period before contacting clients located in her client file. After her final day with her employer, she updates her personal pages on s...