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Latest CFA CFA-Level-I Practice Test Questions, CFA Institute CFA Level I Chartered Financial Analyst Exam Dumps [Q226-Q245]

Latest CFA CFA-Level-I Practice Test Questions, CFA Institute CFA Level I Chartered Financial Analyst Exam Dumps

Apr-2023 Pass CFA CFA-Level-I Exam in First Attempt Easily

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 226
Which of the following flow assumptions is not acceptable under generally accepted accounting principles?

FIFO/LIFO

Next-in, first-out.

Average cost.

NEW QUESTION 227
Assume that you are analyzing a plain vanilla interest rate swap with the following characteristics:
Counterparty X : Counterparty Y pay fixed rate 6% : pay floating rate LIBOR + 0.5% receive floating rate
LIBOR + 0.5% : receive fixed rate 6% Swap tenor: 10 years Notional principal: $1,000,000 LIBOR0:
4 .75%
If this were an “in-advance” swap, Counterparty X would make its first fixed rate payment at the time the swap is negotiated. The amount of the payment would be:

$60,000

$52,500

$57,279.24

In this case, the first payment would be the present value of the “in arrears” amount, discounted at LIBOR. (1,000,000)(.06)/ (1.0475)1 = 57,279.24

NEW QUESTION 228
The stock __________ is a close substitute for a cash dividend.

dividend

split

repurchase

A stock repurchase is a close substitute for a cash dividend.

NEW QUESTION 229
A corporation’s free cash flow is its:

Cash flow from operating activities that is not subject to income taxes.

Cash flow from operating activities available after basic business obligations have been met.

Cash flow from operating activities less all cash payments for investing and financing activities.

NEW QUESTION 230
__________ are included in the bond indenture to protect bondholders from certain actions by the company.

Indentures

Debentures

Covenants

NEW QUESTION 231
Consider a level perpetuity of $250.00 with the first payment made at t = 4. The present value of the perpetuity today if the discount rate is 6 %, is

$3300.39.

$3498.42.

$4166.67.

Using Texas Instruments BA II Plus Don’t forget to clear your memories using 2nd QUIT and
2 nd CLR WORK 4166.67 +- FV: FV = – 4,166.67 3 N: N = 3.00 6 I/Y: I/Y = 6.00 CPT PV: PV = 3498.42
(Note: If you work out the Future Value on your calculator and it is taken to more than 2 decimal places., your final answer may be PV = 3498.41)
Using Hewlett Packard hp 12 C f CLEAR FIN: 0.00000000 f CLEAR REG: 0.00000000 3 n: 3.00000000 6 i: 6.00000000 4166.67 CHS FV: – 4,166.670000 g END: -4,166.670000 PV: 3498.416478.

NEW QUESTION 232
Suppose you are considering purchasing a financial asset which promises to pay 10 annual payments of $1,000 with the rate of return quoted as 9% per annum. How much should you pay for the annuity if the first payment is made in one year’s time?

$5759.02.

$6417.66.

none of these.

Using hp-12C f CLEAR FIN: 0.00000000 f CLEAR REG: 0.00000000 10 n: 10.00000000 9 i:
9 .00000000 1000 CHS PMT: -1,000.000000 g END: -1,000.000000 PV: 6,417.657701
Using TI BA II Plus 2nd QUIT: 0.00 2nd CLR TVM: 0.00 1000 +- PMT: PMT = 1,000.00
1 0 N: N = 10.00 9 I/Y: I/Y = 9.00 CPT PV: 6,417.66
Thus the series of cash flows of $1000 per year is currently worth $6417.66.

NEW QUESTION 233
Which of the following costs related to software costs should be capitalized?

costs related to coding

costs related to product masters

costs related to planning and design

The costs of designing, testing, coding, and planning are to be expensed. Once the technological feasibility of the product is established, then product masters are made. The cost of these product masters and any costs up to the production of the product for sale will be capitalized.

NEW QUESTION 234
If nonrecurring charges are really prior year expenses taken too late, then the practice of ignoring nonrecurring charges and focusing on recurring operating income results in

an underestimation of the firm’s assets.

an overestimation of the firm’s earnings trend.

an overestimation of the firm’s assets.

If nonrecurring charges are really prior year expenses taken too late, then the practice of ignoring nonrecurring charges and focusing on recurring operating income results in an overestimation of the firm’s earnings trend.

NEW QUESTION 235
Which of the following is/are true?
I). The mean deviation can never be negative.
II). The range of a data set can never be negative.
III). The mean deviation is always less than the mean absolute deviation (MAD).

I and II.

II and III.

I and III.

Range of a dataset = maximum value – minimum value. Therefore, the range can never be negative. Also, since the mean deviation is the average of the absolute deviations from the mean, the MD can never be negative, either. Finally, mean deviation and mean absolute deviation are one and the same thing.

NEW QUESTION 236
Which of the following characteristics is not representative of an industry that’s in the maturity stage of its life cycle?

Competition is intense among the rivals within the industry.

There are a lot of companies from other industries entering into this particular industry.

Instead of product differentiation, price is the primary competitive weapon.

As an industry matures, sales are either stagnant or growing slowly. This lack of industry sales growth forces companies to increase sales by stealing market share from each other, often using price to lure away customers. All these factors make the industry a very unattractive market for new competitors to enter into.

NEW QUESTION 237
The price volatility of a variable rate note may be reduced by:

eliminating any put features.

resetting the coupon rate more frequently.

reducing the size of the issue or downgrading the quality rating.

NEW QUESTION 238
Which statement is false?

Small bid-ask spreads indicate low costs of trading.

A dealer’s spread may be smaller than the market spread for the same security.

A market order does not allow any control over the price.

A: Bid-ask spreads are an implicit cost of trading. B: The market spread is never more than any dealer spread. C: The market order is filled at the best price available at the relevant time.

NEW QUESTION 239
Which one of the following best explains why the crowding out effect, brought on by an increase in government spending financed by the sale of government bonds to the public, is likely to reduce aggregate demand?

The sale of government bonds to the public reduces the money supply and will offset the expansionary impact of the increased government spending.

The sale of government bonds to the public will drive up interest rates, thereby retarding private investment and aggregate demand.

The question is based on a false premise. The crowding-out effect suggests that the government’s selling of bonds to the public is a very effective tool with which to stimulate demand.

NEW QUESTION 240
A share repurchase may _____ EPS.
I). increase.
II). decrease.
III). have no effect on.

I only.

II only.

I, II and III.

The effect depends on whether the repurchase is financed internally or externally.

NEW QUESTION 241
For the hypothesis test below, a Type I error could have been made.

A correct explanation of the error is:

Concluding that 70% or less of adults feel that vitamin supplements can prevent illness when in fact more than 70% feel that vitamin supplements can prevent illness.

Going along with more than 70% of adults feel that vitamin supplements can prevent illness when in fact 70% or less feel that vitamin supplements can prevent illness.

Concluding that more than 70% of adults feel that vitamin supplements can prevent illness when in fact
7 0% or less feel that vitamin supplements can prevent illness.

Because the decision was reject H , a Type I error- rejecting H when H is in fact true –
0 0 0
could have been made.

NEW QUESTION 242
A discrete probability distribution is the same as:

a collection of all possible outcomes of an experiment.

an absolute frequency distribution.

a relative frequency distribution.

The relative probability distribution of a set shows the relative frequency in each category in which the observation set is subdivided i.e. it shows the percentage of the observation set lying in each class. This also represents the probability distribution of the observation set.

NEW QUESTION 243
The yield to maturity on a bond is:

below the coupon rate when the bond sells at a discount and above the coupon rate when the bond sells at a premium.

the interest rate that makes the present value of the payments equal to the bond price.

based on the assumption that all future payments received are reinvested at the coupon rate.

NEW QUESTION 244
The following data pertains to the McGuire Company:
Net income: $15,000. 5,000 shares of common stock issued on January 1st. 10 percent stock dividend issued on June 1st. 1000 shares of common stock were repurchased on July 1st. 1000 shares of 10 percent, par $100 preferred stock each convertible into 8 shares of common were outstanding the whole year.
What is the company’s basic earnings per share (EPS)?

1.2

1.0

2.5

Number of average shares:
1 /1: 5,500 shares issued (includes 10% stock dividend on 6/1) x 12 months = 66,000. 7/1: 1,000 shares repurchased x 6 months = -6,000. 60,000 shares/12 months = 5,000 average shares. Preferred dividends
= ($10)($1000) = $10,000. Basic EPS = [$15,000(NI) – $10,000(preferred dividends)]/5,000 shares =
$ 5,000/5,000 shares = $1/share

NEW QUESTION 245
A sociologist wants to study the attitudes of American male college student toward marriage and husband-wife relations. She gives a questionnaire to 25 of the men enrolled in Sociology 101 at her college. All 25 complete and return the questionnaire. The sample in this situation is:

all men taking a comparable sociology class.

the 25 men who received and returned the questionnaire.

all the men in the Sociology 101 class.

The sample is part of the population we actually observe.

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Latest CFA CFA-Level-I Practice Test Questions, CFA Institute CFA Level I Chartered Financial Analyst Exam Dumps [Q226-Q245]

How to Prepare For CFA CFA-Level-I: CFA Institute CFA Level I Chartered Financial Analyst Exam