Instant Download CFA: CFA-Level-I Free Updated Test Dumps
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CFA CFA-Level-I: CFA Institute CFA Level I Chartered Financial Analyst Certified Professional Salary
Salaries for CFA level 1 Certified Professionals may vary by country. The estimated salaries of a CFA level 1 exam test given below:
Europe: 92,000 Euro
United States: 15,000 USD
England: 78,000 Pounds
India: 7,15,437 INR
How to Prepare For CFA CFA-Level-I: CFA Institute CFA Level I Chartered Financial Analyst Exam
Preparation Guide for CFA CFA-Level-I: CFA Institute CFA Level I Chartered Financial Analyst Exam
Introduction
The Chartered Financial Analyst is one of the most common designations for investment professionals (CFA). However, it is not for the weak of heart or people who are not interested in being a CFA cardholder. The journey to becoming a CFA holder is long and measures not only the competence but also the strength, dedication and stamina of the topic. According to the CFA Institute, the present curriculum is ideally described as a distance learning programme at its own rate which adopts a general approach to the study, evaluation and management of portfolios which highlights the highest ethical and technical expectations. The CFA curriculum includes three examinations: CFA Level I, Level II and Level III. The CFA applicants must pass both of these exams and they must fulfil certain work requirements defined by the CFA Institute. In December 2017, the progress rate for the Level I exam was 43 percent. For each of these three stages, the curriculum is designed to assess a broad range of skills that are most appropriate for investing professions. In this post, we will focus on the Level I CFA review. CFA Level 1 exam dumps and CFA Level 1 practice exams are designed to render the entire examination environment comfortable for the students.
NEW QUESTION 692
Assume that Able Corporation has paid and expensed several speeding fines for its salespeople.
Fines are never deductible for tax purposes. This will result in which of the following?
- A. No temporary difference.
- B. Taxable temporary difference and future income tax asset.
- C. Taxable temporary difference and future income tax liability.
Answer: A
Explanation:
When an expense is not deductible for tax purposes, it is a permanent difference and therefore, there is no temporary difference at all. This amount is eliminated when calculating the accounting income subject to tax.
NEW QUESTION 693
When the price of a good changes, the substitution effect can be found by comparing the equilibrium quantities purchased
- A. on the new budget line and a hypothetical budget line that is a parallel shift back to the original indifference curve.
- B. on the old budget line and the new budget line.
- C. on the original indifference curve when faced with the original prices and when faced with the new prices.
Answer: C
NEW QUESTION 694
Unemployment compensation:
- A. is an automatic stabilizer because it falls as income increases, slowing an economic expansion.
- B. is not an automatic stabilizer.
- C. is an automatic stabilizer because it rises as income increases, slowing an economic expansion.
Answer: A
Explanation:
Higher income generates higher employment and thus lower unemployment compensation, so aggregate demand does not increase as rapidly as it otherwise would.
NEW QUESTION 695
A private investment in public equity allows a private investor to buy shares at a price that is usually
_ ___ the public-quoted market price.
- A. equal to.
- B. lower than.
- C. higher than.
Answer: B
Explanation:
This is one of the primary incentives for the private investor.
NEW QUESTION 696
If the average cost of producing 9 sweaters is $6.50 and the marginal cost of producing the 10th sweater is $6.75, then the average cost of producing 10 sweaters will:
- A. increase.
- B. decrease.
- C. increase by 25 cents.
Answer: A
Explanation:
If marginal cost is greater than average cost, then average cost will increase. In this case, average variable cost will equal $6.53 after the 10th sweater is produced.
NEW QUESTION 697
The mean return in 1999 for a stock mutual fund of large companies was 7.2% with and the mean return for a risk-free bond was 1.0 %. If the Sharpe measure for the mutual fund is 0.50, what is the standard deviation or risk of the stock mutual fund?
- A. 12.4
- B. 3.2
- C. 16.4
Answer: A
Explanation:
(7.2 - 1 ) / 0.5 = 12.4
NEW QUESTION 698
John has a LONG position in 20 October copper futures contracts. If he sells 20 October copper futures contracts, he will have closed his futures position by:
- A. exchange-for-physicals (EFP)
- B. offset
- C. delivery
Answer: B
Explanation:
By selling an identical number of identical contracts, John has canceled out or offset his
LONG position.
NEW QUESTION 699
If a firm's average per-unit costs fall as it produces a larger output, then
- A. average variable cost must also decline as output expands.
- B. marginal cost must be less than average total cost.
- C. marginal cost must also decline as output expands.
Answer: B
Explanation:
Average total costs increase when marginal costs are greater than average total costs.
Assume the following costs: Fixed cost = 100. The marginal cost of the first unit of output equals $10
(MC1), the marginal cost of the second unit of output equals $12 (MC2), MC3 = 14. Total costs for three units of output equals FC + VC which here equals $100 + ($10 + $12 + $14) which equals $136. Average total costs equals $136/3 or $45.333. If MC4 = $16 which is smaller than average total cost the average total cost will decline. Thus, total cost becomes $136 + $16 = $152 thus making average total cost equal
$ 152/4 or $38. Thus, when marginal cost is smaller than average total cost, the average total cost will decline.
NEW QUESTION 700
Frequency distributions are useful for ALL BUT which of the following objectives?
- A. Summarization of data.
- B. Condensation of large sets into smaller sets.
- C. Investigation of characteristics of each observation.
Answer: C
Explanation:
They are useful in illustration of the amount of variability in data as well.
NEW QUESTION 701
Selecting a depreciation method that results in higher earnings than the economic depreciation of the assets warrant is an example of
- A. Following GAAP but selecting alternatives within GAAP that bias or distort reported results to achieve a desired outcome.
- B. Using loopholes or bright-lines in accounting principles to structure transactions to achieve a desired outcome that differs from the economic structure of the transaction.
- C. Using unrealistic or inappropriate estimates and assumptions to achieve a desired outcome.
Answer: A
NEW QUESTION 702
Lionel Stein currently works for JHK Bank managing private client's money. Lionel decides to change
Banks and go and manage private client accounts for RTU Bank. Just prior to leaving JHK Lionel convinces several current clients to move to RTU with him. In addition Lionel convinces several prospective clients that he presented to at JHK to open private accounts with RTU. Has Lionel violated the
Code and Standards?
- A. Yes, since members are not entitled to solicit current or prospective clients while they still work for their current employer.
- B. No, members are entitled to solicit current and prospective clients while they still work for their current employer.
- C. Yes, since members are not entitled to solicit current clients while they still work for their current employer, but they are entitled to solicit prospective clients while they still work for their current employer.
Answer: A
Explanation:
Solicitation of current and prospective clients while still working for the current employer is unethical and violates the Code and Standards.
NEW QUESTION 703
Funds frequently assess a fee to cover marketing and other expenses. This is called a:
- A. contingent deferred sales charge
- B. front-end load
- C. 12b-1 fee
Answer: C
Explanation:
Many mutual funds are "12b-1 plans." This designation allows an investment company to deduct up to 0.75% of average net assets each year to cover distribution costs such as marketing expenses and compensation to selling brokers.
NEW QUESTION 704
Industry consolidation usually happens in the _____ stage.
- A. shakeout
- B. decline
- C. mature
Answer: C
NEW QUESTION 705
An appreciation of the US dollar would ____ (increase, decrease, not affect) aggregate demand, and an increase in the real interest rate would ____ (increase, decrease, not affect) aggregate demand.
- A. decrease, increase.
- B. decrease, decrease.
- C. increase, decrease.
Answer: B
Explanation:
An appreciation of the dollar would make U.S. goods and services more expensive to foreigners and would reduce exports. An increase in the real interest rate would depress domestic investment spending and spending on consumer durables such as automobiles and refrigerators.
Spending on U.S. exports, investment spending and consumer spending are components of aggregate demand.
NEW QUESTION 706
A poll of 100 randomly sampled adult Americans found that 53% supported banning handgun sales. A newspaper wants to use the data to conclude that a majority of Americans support banning handgun sales. At the 10% level of significance, the newspaper's conclusion should be _______.
- A. A majority, p > 50%, of adult Americans support a ban on handgun sales.
- B. There is no evidence that a majority, p > 50%, of adult Americans support a ban on handgun sales.
- C. There is evidence that 53% of adult Americans support a ban on handgun sales.
Answer: B
Explanation:
The hypothesis test would appear as shown below: 13.
NEW QUESTION 707
If the government regulates a natural monopoly through a policy of average-cost pricing, we would expect that, compared to an unregulated natural monopoly,
- A. prices would be lower and output would be higher.
- B. prices would be lower and output would be lower.
- C. prices would be higher and output would be lower.
Answer: A
Explanation:
Governments regulate natural monopolies in order to reduce prices and increase output.
Average-cost pricing, however, always provides the firm with no incentives to control costs, so average costs increase.
NEW QUESTION 708
Which of the following is not considered to be a type of credit risk?
I). default risk.
II). credit spread risk.
III). downgrade risk.
- A. None of the above.
- B. I or III.
- C. II.
Answer: A
NEW QUESTION 709
Suppose that the exchange rates (after taking out the fees for making the exchange) in London are E(GBP)5
= $10 = Y(JPY)1000 and the a profit of Y(JPY)200, would be:
- A. arbitrage.
- B. securitization.
- C. investing.
Answer: A
Explanation:
In reality, this "triangle arbitrage" is so simple that it almost never occurs.
NEW QUESTION 710
In general, when the price of the underlying stock is _______ the price of a call option will _________, and the call owner will benefit.
- A. falling; rise
- B. rising; fall
- C. rising; rise
Answer: C
Explanation:
The value of a call is directly related to the underlying common stock. As the price of the stock goes up the call gains value and as the stock declines the call loses value. The call owner benefits when the price of the stock rises.
NEW QUESTION 711
A normal distribution has a mean of 25% and a standard deviation of 33%. What is the 95% confidence interval around the mean, i.e., if 95% of observations can be expected to fall in this range?
- A. -8.00, 58.00
- B. -39.68, 89.68
- C. -29.29, 79.29
Answer: B
Explanation:
The 95% confidence interval corresponds to a multiple of 1.96 for standard deviation. Thus, the range or interval is 25% +- 1.96 x 33% = [-39.68, 89.68].
NEW QUESTION 712
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