Level - Study guides, Class notes & Summaries

CFA Level 1 Questions | Questions with 100% Correct Answers | Updated & Verified What are the 4 types of measurement scales? - 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? - Arithmetic Mean: To estimate next year's return Geometric Mean: Measure of past performance What are the 3 different types...

Current Ratio - Answer- Current Assets divided by current liabilities Quick Ratio - Answer- Cash plus marketable securities plus receivables divided by current liabilities Cash Ratio - Answer- Cash plus marketable securities divided by current liabilities Defensive Interval Ratio - Answer- Cash plus marketable securities plus receivables divided by average daily expenditures Cash Conversion cycle - Answer- days in inventory plus days in accounts receivables minus days in accounts pay...

CFA LEVEL 1 question with correct answers 2023 graded A+ Financial Statement Analysis Framework - correct answer provides an overview of the methodology used by analysts to consistently analyze financial statements 1. articulate the purpose and context of analysis 2. collecting data 3. process the data 4. analyzing and interpreting the processed data 5. develop/communicate conclusions and recommendations 6. follow up Scope of Financial Statement Analysis - correct answer - analysis is...

CFA Level 1 - Quantitative Methods Exam Questions with Complete Solutions Working Capital Management - Answer-The management of the company's short-term assets (such as inventory) and short term liabilities (such as money owed to suppliers). NPV Decision Rule - Answer-If the investments NPV is positive - Accept Project If the investments NPV is negative - Decline Project If the investor has 2 (Mutually Exclusive) projects - Accept the Higher NPV IRR Decision Rule - Answer-IRR is gr...

CFA Level 1 - 101 Must Knows question and answers 2023 verifiedAddition Rule of Probability - correct answer ADDITION: P(A or B) = P(A) + P(B) - P(AB) Roy's Safety First Criterion - correct answer Safety First Ratio = (E(R) - Rₜ) / σ Larger ratio is better If (Rₜ) is risk free rate, then it becomes Sharpe Ratio Sharpe Ratio - correct answer Sharpe Ratio = (E(R) - RFR) / σ Larger ratio is better If (Rt) is higher than RFR, then it becomes Safety First Ratio Central Lim...

A Level 1 Practice Test Questions with Correct Answers Otto von Bismarck's phrase " blood and iron" What is related to the? - Answer-Unification of Germany all the following are consequences of the Franco-Prussian war EXCEPT? - Answer-A wave of social reform in Germany to what historical development is this cartoon from an 1898 French newspaper referring? - Answer-efforts by imperialist powers to divide China into "spheres of influence" which of the following modern Asian countr...

CFA Level 1 – Economics correctly answered to pass 2023 Price Elasticity of Demand Formula - correct answer (% Change in Quantity Demanded) / (%t Change in Price) Cross Elasticity of Demand Formula - correct answer (% Change in Quantity Demanded) / (% Change in Price of Substitute or Complement) Income Elasticity of Demand Formula - correct answer (% Change in Quantity Demanded) / (% Change in Income) Price Elasticity of Supply Formula - correct answer (% Change in Quantity Supplied)...

faithful representation, substance over form, prudence, neutrality, completeness - Answer- According to the IFRS what are the 5 qualities of financial information that improve reliability Costs can be reliably measured - Answer- According to IFRS what condition must be met for revenue recognition to occur? Current ratio will decrease. Accruing wages increases both current liabilities and expenses, but collecting receivables has no effect on current assets or sales therefore the current r...

CFA Level 1 glossary 2020(updated)question and answersA priori probability - correct answer A probability based on logical analysis rather than on observation or personal judgment. abnormal return - correct answer The amount by which a security's actual return differs from its expected return, given the security's risk and the market's return. absolute advantage - correct answer A country's ability to produce a good or service at a lower absolute cost than its trading partner. Absol...