CFA一级模考

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CFA一级模考

CFA一级模考题1 . A 30-year, 10% annual coupon bond is sold at par. It can be called at the end of 10 years for$1,100. What is the bond's yield to call (YTC)?A) 8.9%.B) 10.6%.C) 10.0%.B was correct!N = 10; PMT = 100; PV = 1,000; FV = 1,100; CPT → I = 10.6.2. To reduce the cost of long-term borrowing, a corporation with a below average credit ratingcould:A) decrease credit enhancement.B) issue securitized bonds.C) issue commercial paper.B was correct!Commercial paper is only issued by corporations with top credit ratings. Decreasing credit enhancements increase the cost of borrowing.3. The principal value of a sovereign bond is $1,000 at issuance and $1,055 two years afterissuance. This bond most likely:A) is indexed for inflation.B) trades at a premium.C) has been upgraded.A was correct!Inflation-indexed bonds often have a capital-indexed structure in which the principal value is adjusted periodically by the inflation rate. Credit rating upgrades or downgrades do not affect the principal value of bonds. A bond is trading at a premium when its market price is greater than its principal value.4. If the current two-year spot rate is 6% while the one-year forward rate for one year is 5%,what is the current spot rate for one year?A) 7.0%.B) 5.5%.C) 5.0%.A was correct!(1 + 1y1y)(1 + s1) = (1 + s2)2(1 + 0.05)(1 + s1) = (1 + 0.06)2(1 + s1) = (1.06)2 / (1 + 0.05)1 + s1 = 1.1236 / 1.051 + s1 = 1.0701s1 = 0.07 or 7%5. A 20-year bond with a par value of $1,000 and an annual coupon rate of 6% currently trades at$850. It has a yield to maturity of:A) 7.5%.B) 7.9%.C) 6.8%.A was correct!N = 20; FV = 1,000; PMT = 60; PV = -850; CPT → I = 7.5。

(完整版)CFA一级模考试题及答案.doc

ANSWERS FOR MOCK EXAM 1 (MORNING SESSION)1. D.Although Terence has passed Level III, he has not yet received his charter andcannot use the CFA designation. The description provided in the cover letterproperly describes his situation.2. C.Amy must take both actions-notifying her immediate supervisor and delivering acopy of the Code and Standards.3. D.4. C.Members may undertake an independent practice that could result in compensationor other benefit in competition with their employer provided they obtain writtenconsent from both their employer and the party for whom they undertakeindependent practice.5. C.To maintain his objectivity, Keith should pay his own hotel bill. Because the itineraryrequired charter flights due to a lack of commercial transportation, A& K Limited can appropriately provide them.6. C. Under ERISA, fiduciaries must act solely in the interest of, and for the exclusivepurpose of benefiting, the plan participants and beneficiaries.7. B. Daniel must give priority to transactions for clients and employers over transactionsfor his children.8. A.To avoid violating the standards, members cannot trade until the member's clients andemployers have had an adequate opportunity to act on the recommendation.9. C.The requirements of Standard IV (B.5) are not intended to prevent Lambert fromcooperating with an investigation by AIMR's Professional Conduct Program.10. B.Vivian should disclose to her clients and prospects her husband's holdings in DoubleLimited because this matter could be expected to impair her ability to makeunbiased and objective recommendations.11. B.12. B.Accruals accounting is required.13. C.Standard I(B) Fundamental Responsibilities. Prohibition against participating orassisting in illegal and ethical violations. If Roberts suspects someone isplanning or engaging in illegal activities, he should: (1) determine the legalityof the activities, (2) disassociate himself from the illegal or unethical activity, and(3) urge his firm to attempt to persuade the perpetrator to stop. The AIMRStandards of Professional Conduct do not require that Roberts report suchactivities to the authorities, but the law might.14. C.Standard III(C) Disclosure of Conflicts to Employer. Gloria should disclose to heremployer all matters that could reasonably be expected to interfere with herability to make unbiased and objective recommendations. Her service as atrustee of the Well Limited Foundation for Heart Research is most likely to beconsidered a conflict of interest with her responsibility to her employer.15. C.Standard III (E) Responsibilities of Supervisors. Paul may delegate supervisory duties,but such delegation does not relieve him of his supervisory responsibility.16. A.Standard IV (B.3) Fair Dealing. Johnson violated the standard on fair dealingbecause he did not deal fairly and objectively with all clients and prospectswhen disseminating investment recommendations. Instead, he showedfavoritism to his best clients. In disseminating investment recommendations,Johnson should consider making the information available to clients based ontheir interest and suitability. A change of recommendation from buy to sell or sellto buy is generally material.17. D.Standard IV(B.5) Preservation of Confidentiality. Choice B is false because thisAnswers for Mock Exam 1 (Morning Session) (Rev. 1) 1standard prohibits members from executing settlement agreements that preventmembers from providing information in an investigation by AIMR's ProfessionalConduct Program (PCP). Choice C is false because a person cannot withholdinformation during PCP investigations. Choice A is false because if a memberreceives information due to his or her special relationship with the clientindicating illegal behavior on the past of the client, the member may not have anobligation to inform the appropriate authorities.18. A.Standard IV(B.6) Prohibition against Misrepresentation. Members are not permitted tomake any assurances or guarantees about any investment, except tocommunicate accurate information. The statement that investment grade bondshave less default risk than junk bonds is an accurate statement.19. e BGN node: n = 10; i = 12 PMT = 1,000, compute FV = 19.654.5820. B.The present value of a perpetuity is PV = A/r = 500/0.1 = $5,000.21. B.i = 6/12 = 0.5; n = 10x12 = 120; PV = 40,000 Compute PMT22. A.23. A.A binomial random variable has an expected value or mean equal to np andvariance equal to np(1-p).Mean = 12(0.5) = 6; variance (12)(0.5)(1-0.5) = 324. D.25. B.Rbt-1 = In St+1 /St = (1+RL1-1) = In (40/25) = 0.47. Thus, 47% is thecontinuously computed return for the one-year holding period.26. B.Choice A describes cross-sectional data.Choice B describes time-series data.27. D.The dependent variable, Y, is equal to the intercept, b0, plus a slope coefficient, b1,times the independent, X, plus an error term, ε.28. C.I N FV Compute PV10 1 100 90.9110 2 150 123.9710 3 200 150.2610 4 250 170.75Total 535.8929. B.Step 1: Solve for the PV of the 5 payments of 3,000 to be received in years 3through 7.n = 5; i = 10; PMT = 3,000; compute PV =11,372.3611,372.36 falls one year before the first payment, or in year 2.Step 2: Find the present value of 11,372.36 that is two years in the future. n= 2; i = 10; FV =11,372.36; compute PV =9,398.64 or 9,399(rounded).30. D.From weakest to strongest, the ordering of measurements scales is nominal, ordinal,interval, and ratio.31. B.An interval is a set of return values within which an observation not falls.32. C.Step 1. Calculate the mean monthly return = 2% + (- 4%) + 1% + 5% = 4%M = 1%Step 2.Calculate the population standard deviation:([(2% - 1%) 2 + (-4% -1%) 2 +(1% - 1%) 2 +(5% -1%)2 ]N)1/ 2=3.24%Step 3. Calculate the sample standard deviation: ([(2% - 1%)2 + (-4% -1%) 2+ (1% - 1%) 2+ (5% - l%) 2 ])/n - 1) 1/ 2 = 3. 74%33. B.According to Chebyshev's inequality, the proportion of the observations within 2,which is k, standard deviations of the mean is at least 1 -(l/k) 2 = 1-(1/2 2) =0.75 or 75%.34. A.The probability is 30/200 = 0.15.35. ing the addition rule for probabilities, P (analyst or positive) =P(analyst) +Answers for Mock Exam 1 (Morning Session) (Rev. 1) 2P(positive) - P(analyst and positive)P (A or positive) = 130/200 + 140/200 - (100/130) = 0.58 or 58%36. B.Savings increases to hold interest rates constant. This means aggregate demandchanges little.37. C.The empirical evidence on the relationship between budget deficits and interest ratesis mixed.Few studies show a significant positive short-term link between budgetdeficits and real interest rates.38. B.Expansion = 1 / reserve requirement = 1/0.25 = 4(4)(150) = 60039. C.People realize this leads to inflation in the long run, so they reduce their moneyholdings. Output rises because the increase is unexpected.40. C.In purely competitive markets, there are a large number of dependent firms.41. D.42. D.43. C.44. C.45. D.Choice A: Accrual accounting does not require the receipt of cash for assurance ofpayment to exist.Choice C and D: These relate only to the condition of completion of theearnings process.46. D.47.ADemand for currency decreases when real interest rates decrease because ofdecreased capital flows.48.CForeign exchange quotations can be expressed on a direct basis -the home currencyprice of another currency — or an indirect basis-- the foreign currency price ofthe home currency.49.C F/S= (1 + r D )/(l + r F) where rates are listed as DC/FCF = (1.3/1.25)(0.4) = 0.41650. C.Direct method:Net income 1000Depreciation 70Goodwill 30Change in accounts receivable 25Change in inventory (35)Change in accounts payable 30Change in wages payable 15Operating cash flows 113551. B. Purchase equipment (200)Sell truck 25Investing cash flows (175)52. D. Sale of common stock 100Issuance of bonds 20Financing cash flows 12053. D.A common size balance sheet expresses all balance sheet accounts as apercentage of total assets.54. C. Original shares of common stock = 1,000,000(12) = 12,000,000Stock dividend = 200,000(12) = 2,400,000New shares of common stock = 200,000(3) = 600,000Total shares of common stock = 15,000,000/12= 1,250,000 Stock dividends are assumed to have been outstanding since the beginningof the year.55. D.Inventory turnover, defined as COGS/Average inventory, if often meaningless forLIFO companies due to the mismatching of costs. The numerator representscurrent costs, whereas the denominator reports outdated historical costs. Thus,the turnover ratio under LIFO will, when prices decrease, trend lower becauseof small COGS and larger inventory. Net profit margin, defined as EA T/Sales,is higher during periods of decreasing profits for LIFO companies. LIFO leadsto a smaller COGS, which reduces EAT, without affecting sales.56. A.In this situation, LIFO results in lower cost of goods sold because it uses the morerecent and lower costs than LIFO. LIFO results in lower cash flows becausethe cash on income taxes is a percentage(the marginal tax rate) of thedifference in inventory values. Thus, with LIFO:Sales-COGS(smaller)EBT (larger)-Taxes (larger) Because taxes paid out are a cash outflow.EAT (larger) If taxes are larger, then cash flow ill be smaller.57. D.COGSFIFO = COGSLIFO - (Ending LIFO Reserve - Beginning LIFO Reserve)COGSFIFO = $250,000 - ($8,000-$5,000) = $247,00058. pared to expensing, capitalizing results in higher profitability in early yearsand lower profitability in later years.59. C.60. D.The present value of the minimum lease payments equals or exceeds 90 percent ofthe value of the fair value of the leased property.61. B.Capital lease affects on the income statement:Step1: Calculate the depreciation charge: ($3,500,000-$450,000)/10 = $305,000Step2: Calculate the interest expense: $3,500,000(0.15) = $525,000Total expense: $305,000+$525,000 = $830,00062. A.63. C.64. A.65. B.66. D.67. B.Dealer-markets are price-driven markets.68. D.69. C.70. C.P/E = Dividend payout ratio/(k-g)Dividend payout ratio = 1 - retention ratio = 1-0.2 = 0.8P/E = 0.8(0.15-0.08) =5.671. B.k = D1/P0+g = $4/$25+0.09 = 0.2572. A.Step1: Calculate the ending index value = ($100)(5) = $500Step2: Calculate the expected return.E(R1) = [Dividends + (Ending value - Beginning value)]/(Beginning value)=[40+(500-490)]/$490 = 0.1 or 10%73. D.The critical factors determining the franchise P/E are the difference between theexpected return on the new opportunities (R) and the current cost of capital (k)and the size of these growth opportunities relative to the firm's current size.74. A.75. C.76. D The completed contract method less net income in the periods beforeconstruction is completed, but not at the end of the contract, than using thepercentage-of-completion method. This is because the completed contractmethod recognizes revenue and expense only when the contract has beencompleted.77. A. Net income 1,000Adjustment for non-cash andnon-operating itemsDepreciation 100Deferred taxes (increase) 40Profit from sale ofequipment (10)Adjustment for workingcapital items:Accounts receivable (decrease) (120)Inventory (increase) (40)Accounts payable (increase) (20)Wages payable (decrease) (10)Cash flow from operations 94078. D79.A When inventory and accounts receivable increase, this is a use of cash (cashoutflow); when assets decrease, this is a source (cash inflow). When accountspayable increase, this is a source of cash (cash inflow); when liabilities decrease,this is a use (cash outflow).80.BCash conversion cycle = receivables days + inventory processing days -payables payment period.Receivables days = 365/receivabies turnover = 365/30 = 12.17 days.Inventory processing days = 365/inventory turnover = 365/15 = 24.33 days.Payables payment period = 365/payabIes turnover = 365/20 = 18.25days.Cash collection cycle = 12.17 + 24.33 –18.25 = 18.25 days.81.BChoice A: Buying fixed assets on credit does not affect current assets butincreases current liabilities. Therefore, the current ratio falls.Choice B: Buying inventory on account increases both inventory and accountspayable. Because the current ratio started off below I, the ratio will increase.Choice C: Selling marketable securities for cash does not affect the amount ofcurrent assets and leaves the current ratio unaffected,Choice D : Paying off accounts payable from cash lowers current assetsand current liabilities by the same amount. Because the current ratio startedoff below 1, the ratio will fall.82.D ROE = Profit margin x Total asset turnover x financial leverageROE = (0.3)(2.1)(0.5)= 0.315 or 31.5%83.AROE = [(S/A)(EBIT/S) - (I/A)](A/EQ)(I - t)ROE = [(2.5)(0.2) - (0.08)](1.2)(0.6) = 0.30 or 30%84. A85.B EPS = ($180,000 - $4,000) / 50,000 = $3.52 per share86. B87. D88.CThese relationships are reversed in the latter years of the asset's life if the firm'scapital expenditures decline.89. D90. C.91. C.92. D.93. D.Absolute yield spread = Yield on Bond A - Yield on Bond B = 10%-7% = 3%94. B.Relative yield spread = (Yield on Bond A - Yield on Bond B)/(Yield on BondB)=(10%-7%)/7% = 0.43 = 43%95. B.Yield ratio = (Yield on Bond A)/(Yield on Bond B) = 6%/7% = 1.4396. B.Current yield = (Annual dollar coupon interest)/(Price of the bond) = 8/130 =0.0625 or 6.25%97. A.When the stock's price (S) - the strike price (X) is positive, a call option isin-the-money. 25-X = 8 so X = 17.98. A.99. A.The writer of put loss = $60-premiun$5 = $55 Thewriter of call gets a maximum gain of $8100. A.101. C.102. D.103. A.104. D.105. B.106. D.107. C.108. A.Securities that fall on the SML are properly valued.109. A.110. A.If a stock's beta were equal to 1, an investor would be expected to get the marketrate of return from buying the stock. E(R) = 5%+1(10%-5%) = 10% 111. D112. D113. C114.BPerfect positive correlation (r = + 1) of the returns of two assets offers no risk reduction, whereas perfect negative correlation (r = -1) offers the greatestrisk reduction.115.BPortfolio A does not lie on the efficient frontier because it has a lower return than Portfolio B but has greater risk. Portfolio D does not lie on the efficient frontier because it has higher risk than Portfolio C but has the same return. 116. C.117.DChoice A: Unsystematic risk is diversifiable risk.Choice B: Systematic risk is undiversifiable risk.Choice C: Total risk= Systematic risk+ Unsystematic risk.118. C119.DCAPM specifies the factor (market risk) but APT does not.120. A。

CFA一级模考

CFA一级模考题1 . Which of the following is generally true of the head and shoulders pattern?A Volume is important in interpreting the data.B The neckline, once breached, becomes a support level.C Head and shoulders patterns are generally followed by an uptrend in the security's price.2 . Nikolai Kondratieff concluded in the 1920s chat since the 1780s, Western economies have generally followed a cycle of how many years?A 18.B 54.C 76.3 . Based on the decennial pattern of cycles, how would the return of the Dow Jones Industrial Average (DJJA) in the year 2015 compare with the return in 2020?A The return would be better.B The return would be worse.C The answer cannot be determined because the theory does not apply to both of those years.4 .According to the U.S. presidential cycle theory, the DJIA has the best performance during which year?A The presidential election year itself.B The first year following a presidential election.C The third year following a presidential election.5 . What is a major problem with long-term cycle theories?A The sample size is small.B The data are usually hard to observe.C They occur over such a long period that they are difficult to discern1. A is correct. Volume is necessary to confirm the various market rallies and reversals during the formation of the head and shoulders pattern.2 . B is correct.3 . A is correct. The decennial pattern theory states that years ending with a 5 will have the best performance of any of the 10 years in a decade and that those ending with a zero will have the worst.4 . C is correct. A possible reason for the superior performance in the third year is that the U.S. presidential election occurs, together with a number of other elections. in a four-year cycle. so the politicians desiring to be reelected inject money into the economy in the third year to Improve their chances of winning the following year.5 . A js correct. Long-term cycles require many years to complete; thus. not many cycles are available to observe.。

CFA一级模考

CFA一级模考题1 . Ed Socho states that in a GIPS-compliant presentation, (1) total firm value must be based on the market values of all accounts including non-fee-paying accounts and accounts where the client makes the investment decisions. and that (2) the firm must include the performance results of third-party advisors selected by the firm in composite performance. Are Socho's statements accurate?A. Both of these statements are accurate.B. Neither of these statements is accurate.C. Only one of these statements is accurate.解析：ABoth statements are correct. Total firm assers must include fee-paying and non-fee- paying accounts. If a sub-advisor who manages firm assets is selected by the firm, the performance of assers under the sub-advisor's control must be included in the performance of the firm's composite for those assets.2 . Upon completing investment reports on equity securities, Shannon Mason, CFA. routinely shreds all documents used in preparing the reports. In a report on UltraTech Software, Mason provides detailed explanations of the upside and downside risks associated with UltraTech, but provides no information on a sharp decrease in insider buying over the last 12 months. Mason has most likely violated:A. CFA Institute Standards by failing to maintain adequate records.B. CFA Institute Standards by neglecting to include the insider buying information in the investment report.C. none of the Standards.解析：AStandard V(C). This Standard requires CFA charterholders and candidates to maintain appropriate records to support investment recommendations. Shredding all of the supporting documents is clearly a violation of the standard. Mason did nor violate Standard V(B), however, since she fully described the basic charaaeristics of the investment. The level of insider buying is not a basic characreristic of an equity security.3 . William Callahan, CFA, is an energy analyst. His supervisor, Nancy Deininger, CFA, has recently decided to let Callahan cover a few of The firms that Deininger had been covering previously. Deininger gives Callahan specific instructions not to change her prior recommendation on one of these firms, Mayfield Energy. Callahan's least appropriate action is to:A. tell Deininger that he cannot cover Mayfield Energy under those restrictions.B. perform his own independent analysis of Mayfield and reach an independent conclusion.C. use ambiguous language in the report, in order to not mislead the investor while complying with his employer's instructions.解析：CIn accordance with Standard I(B) Independence and Objectivity, Callahan must only issue recommendations that reflect his own independent judgment. If Deininger will not permit him to do so, Callahan must refuse to cover the firm under the conditions specified.4 . Wayne Sergeant, CFA, is an independent investment advisor who works with individuals. A longtime client asks Sergeant if he can recommend an attorney. Sergeant refers his client to Jim Chapman, a local attorney who is also a friend of Sergeant's. Previously, Chapman had agreed to perform some legal work for Sergeant in exchange for the referral of new clients. Do Sergeant's actions violate CFA Institute Standards of Professional Conduct?A. No, because the client is under no obligation and is still free to select another attorney.B. Yes, because Sergeant is prohibited from a making recommendations that could be considered biased due to his friendship with Chapman.C．Yes, because Sergeant did not disclose the nature of his arrangement with Chapman to his client.解析：CStandard VI(C) Disclosure of Conflicts requires members to disclose to their clients any compensation or benefit received by, or paid to, others for the recommendation of services. Sergeant's failure to disclose that he receives legal services for his referral of clients to Chapman is in violation of the Standards.5 . Linda Schultz, CFA, is an investment advisor at Wheaton Investments. Schultz has been employed there for five years, and has never signed a "non-compete" clause. While at Wheaton, Schultz makes preparations to set up her own money management firm. She does not contact any existing clients before leaving Wheaton and does not take any firm records or files. After her resignation becomes effective, Schultz replicates a list of former clients from memory and uses public sources to get their contact information. She then contacts these former clients and solicits their business for her new firm. Has Schultz violated any CFA Institute Standards?A. Yes. Schultz may not contact clients of her old firm.B. No. Schultz is in compliance with CFA Institute Standards.C. Yes. Schultz is permitted to notify clients that she has left her old firm, but she cannot encourage them to come with her to the new firm.解析：BSchultz continued to act in her employer's best interest while still employed and did not engage in any activities that would conflict with this duty until her resignation became effective. Standard IV(A) Loyalty does not prohibit her from contacting clients from her previous firm if she does not get the contact in formation from the records of her former employer or violate an applicable non-compete agreement.。

CFA一级模考

CFA一级模考题1 .The formative stage of venture capital investing when capital is furnished for market researchand product development is best characterized as the:A) seed stage.B) early stage.C) angel investing stage.A was correct!In the seed stage of venture capital investing, capital is furnished for product development, marketing, and market research. The angel investing stage is when investment funds are used for business plans and assessing market potential. The early stage refers to investments made to fund initial commercial production and sales.2.For which of the following investments is an investor most likely to require the greatest liquiditypremium?A) Real estate investment trusts.B) Private equity funds.C) Commodity futures.B was correct!Private equity funds tend to have lockup periods; investors will require liquidity premiums as compensation. REITs and commodity futures are exchange-traded instruments and much more liquid than private equity funds.3.An additional risk of direct investment in real estate, which is not typically a significant risk in aportfolio of traditional investments, is:A) market risk.B) liquidity risk.C) counterparty risk.B was correct!Direct investment in real estate involves liquidity risk because large sums may be invested for long periods before a sale of the property can take place. Market risk exists for both traditional portfolio and real estate investments. Counterparty risk applies mainly to derivative contracts that require a payment from a counterparty, such as swaps and forwards.4.A private equity provision that requires managers to return any periodic incentive fees resulting ininvestors receiving less than 80% of profits is a:A) clawback.B) drawdown.C) high water mark.A was correct!A clawback provision requires the manager to return any periodic incentive fees to investors thatwould result in investors receiving less than 80% of the profits generated by portfolio investments as a whole.5.Bulldog Fund is a hedge fund with a value of £100 million at the beginning of the year. BulldogFund charges 1.5% management fee based on assets under management at the end of the year anda 25% incentive fee with no hurdle rate. Incentive fees are calculated independent ofmanagement fees. The fund’s value at the end of year before fees is £120 million. Compared to a2 and 20 fee structure, Bulldog Fund’s total fees for the year are:A) higher.B) lower.C) the same.A was correct!。

CFA一级模考

CFA一级模考题1 . Financing costs for a capital project are:A) subtracted from the net present value of a project.B) captured in the project’s required rate of return.C) subtracted from estimates of a project’s future cash flows.B was correct!Financing costs are reflected in a project’s required rate of return. Project specific financing costs should not be included as project cash flows. The firm's overall weighted average cost of capital, adjusted for project risk, should be used to discount expected project cash flows.2. One of the basic principles of capital budgeting is that:A) cash flows should be analyzed on a pre-tax basis.B) opportunity costs should be excluded from the analysis of a project.C) decisions are based on cash flows, not accounting income.C was correct!The five key principles of the capital budgeting process are:1. Decisions are based on cash flows, not accounting income.2. Cash flows are based on opportunity costs.3. The timing of cash flows is important.4. Cash flows are analyzed on an after-tax basis.5. Financing costs are reflected in the project’s required rate of return.3. Which of the following policies regarding shareowner rights for equity investors is most likelydetrimental to the shareowners’ interests?A) The company uses a third-party entity to tabulate shareowner votes.B) Shareowners can approve changes to the corporate structure only with a supermajorityvote.C) Shareowners are permitted to vote either by paper ballot or a proxy voting service.B was correct!Provisions that require a supermajority can even make changes strongly supported byshareowners more difficult to enact.4. A publicly traded company has a beta of 1.2, a debt/equity ratio of 1.5, ROE of 8.1%, and amarginal tax rate of 40%. The unlevered beta for this company is closest to:A) 1.071.B) 0.632.C) 0.832.B was correct!The unlevered beta for this company is calculated as:5.Corporate governance defines the appropriate rights, role, and responsibilities of:A) management only.B) management, the board of directors, and shareholders.C) management and the board of directors.B was correct!Corporate governance defines the appropriate rights, roles, and responsibilities of acorporation’s management, the board of directors, and shareholders.。

CFA一级模考

CFA一级模考题1 . If a good has elastic demand, a small price decrease will cause:A)a larger increase in quantity demanded.B)no change in the quantity demanded.C)a larger decrease in the quantity demanded.The correct answer was AIf a good has elastic demand, a small price decrease will cause a larger increase in the quantity demanded.2 . Income elasticity is defined as the percentage change in:A)income divided by the percentage change in the quantity demanded.B)quantity demanded divided by the percentage change in income.C)quantity demanded divided by the percentage change in the price of the product.The correct answer was BIncome elasticity is defined as the percentage change in quantity demanded divided by the percentage change in income. Normal goods have positive values for income elasticity, and inferior goods have negative income elasticity.3 . Producer surplus is best described as the:A)amount by which price exceeds the cash cost of production.B)excess of price over the opportunity cost of production.C)excess quantity supplied relative to quantity demanded.The correct answer was BProducer surplus is defined as the excess of price over the opportunity cost, not the cash cost, of production. Excess quantity supplied relative to quantity demanded represents a surplus of the good in the market, but is not referred to as producer surplus.4 . Marginal revenue product is best defined as the:A)gain in total revenue from selling one more unit of output.B)addition to total revenue from selling the additional output from using one more unit of an input.C)additional output that results from employing one more unit of a productive input.The correct answer was BThe marginal revenue product is the addition to total revenue from selling the additional output that one more unit of an input can produce. The additional output that results from employing one more unit of a productive input is the marginal product. The gain in total revenue from selling one more unit of output is the marginal revenue. A marginal revenue product exists for any level of output; it is not limited to the level at which marginal revenue equals marginal cost.5 . In a natural monopoly:A)one firm controls all natural resources.B)the average total cost of production continually declines with increased output.C)the price charged by a monopolist is determined by the intersection of the demand curve with the marginal cost curve.The correct answer was BA monopoly situation in which the average total cost of production continually declines with increased output is called a natural monopoly.。

CFA一级模考

CFA一级模考题1 . A stock that plots below the Security Market Line most likely:A) is overvalued.B) has a beta less than one.C) is below the efficient frontier.A was correct!Since the equation of the SML is the capital asset pricing model, you can determine if a stock is over- or underpriced graphically or mathematically. Your answers will always be the same.Graphically: If you plot a stock’s expected return on th e SML and it falls below the line, it indicates that the stock is currently overpriced, causing its expected return to be too low. If the plot is above the line, it indicates that the stock is underpriced. If the plot falls on the SML, it indicates the stock is properly priced.Mathematically: In the context of the SML, a security is underpriced if the required return is less than the holding period (or expected) return, is overpriced if the required return is greater the holding period (or expected) return, and is correctly priced if the required return equals the holding period (or expected) return.2. Which of the following statements about portfolio diversification is CORRECT?A) The efficient frontier represents individual securities.B) As the correlation coefficient moves from +1 to zero, the potential for diversificationdiminishes.C) When a risk-averse investor is confronted with two investment opportunities having thesame expected return, the investor will take the opportunity with the lower risk.C was correct!The other statements are false. The lower the correlation coefficient; the greater the potential for diversification. Efficient portfolios lie on the efficient frontier.3. If two stocks have positive covariance, which of the following statements is CORRECT?A) The rates of return tend to move in the same direction relative to their individual means.B) The two stocks must be in the same industry.C) If one stock doubles in price, the other will also double in price.A was correct!This is a correct description of positive covariance.If one stock doubles in price, the other will also double in price is true if the correlationcoefficient = 1. The two stocks need not be in the same industry.4. Which of the following is the vertical axis intercept for the Capital Market Line (CML)?A) Expected return on the market.B) Risk-free rate.C) Expected return on the portfolio.B was correct!The CML originates on the vertical axis from the point of the risk-free rate.5. According to Markowitz, an investor’s optimal portfolio is determined where the:A) investor's lowest utility curve is tangent to the efficient frontier.B) investor's highest utility curve is tangent to the efficient frontier.C) investor's utility curve meets the efficient frontier.B was correct!The optimal portfolio for an investor is determined as the point where the investor’s highest utility curve is tangent to the efficient frontier.。

CFA一级模考

CFA一级模考题1 . The most appropriate measure of the increase in the purchasing power of a portfolio’s value over a given span of time is a(n):A) after-tax return.B) real return.C) holding period return.The correct answer was BA real return is adjusted for the effects of inflation and is used to measure the increase in purchasing power over time.2 . Which of the following statements about the capital market line (CML) is least accurate?A) The market portfolio lies on the CML and has only unsystematic risk.B) Investors choose a portfolio on the CML by varying their weightings of the risk-free asset and the market portfolio.C) The CML will not be a linear relationship if investors' borrowing and lending rates are not equal.The correct answer was AThe first part of this statement is true - the market portfolio does lie on the CML. However, the market portfolio is well diversified and thus has no unsystematic risk. The risk that remains is market risk, or nondiversifiable, or systematic risk.The CML measures standard deviation (or total risk) against returns. The CML will “kink” if the borrowing rate and lending rate are not equal. Investors choose a portfolio on the CML by lending or borrowing at the risk-free rate to vary the weighting of their investments in the risk-free asset and the market portfolio.3 . Stock A has a standard deviation of 10%. Stock B has a standard deviation of 15%. The covariance between A and B is 0.0105. The correlation between A and B is:A) 0.55.B) 0.70.C) 0.25.The correct answer was: BCovA,B = (rA,B)(SDA)(SDB), where r = correlation coefficient and SDx = standard deviation of stock xThen, (rA,B) = CovA,B / (SDA × SDB) = 0.0105 / (0.10 × 0.15) = 0.7004 . A portfolio to the right of the market portfolio on the capital market line (CML) is created by:A) holding both the risk-free asset and the market portfolio.B) holding more than 100% of the risky asset.C) fully diversifying.The correct answer was: BPortfolios that lie to the right of the market portfolio on the capital market line are created by borrowing funds to own more than 100% of the market portfolio (M).The statement, "holding both the risk-free asset and the market portfolio" refers to portfolios that lie to the left of the market portfolio. Portfolios that lie to the left of point M are created by lending funds (or buying the risk free-asset). These investors own less than 100% of both the market portfolio and more than 100% of the risk-free asset. The portfolio at point Rf (intersection of the CML and the y-axis) is created by holding 100% of the risk-free asset. The statement, "fully diversifying" is incorrect because the market portfolio is fully diversified.5 . A return objective is said to be relative if the objective is:A) stated in terms of probability.B) compared to a specific numerical outcome.C) based on a benchmark index or portfolio.The correct answer was CRelative return objectives are stated relative to specified benchmarks, such as LIBOR or the return on a stock index. Absolute return objectives are stated in terms of specific numerical outcomes, such as a 5% return. Risk objectives (either absolute or relative) may be stated in terms of probability, such as “no more than a 5% probability of a negative return.”。

CFA一级模考

CFA一级模考题1 . Which of the following least likely affects a property’s investment potential?A) Structure of the financing mechanisms used to buy the property.B) The legal rights associated with the property.C) The activity around the property, both commercial and non-commercial.A was correct!The financing and investing decisions are made separately. Market value analysis does not consider how the asset will be financed.2. Return and risk data on alternative investments may be affected by backfill bias if:A. data only include currently existing firms.B. the incorrect distribution is used to model volatility.C. previous performance data for firms added to a benchmark index is included.3.Which of the following is least likely a characteristic of the income method for real estatevaluation?A) Require a discounted cash flow model.B) Account for the effects of income taxes.C) Ignore future changes in operating income.B was correct!The income method does not consider the investment’s income-tax implications. However, it does use a discounted cash flow model based on net operating income. The income method does not account for potential changes in operating income.4. Which of the following strategies is most likely to be pursued by a private equity fund?A. Use debt financing to acquire control of a publicly traded firm.B. Buy convertible bonds and sell short the equity of the bond issuerC. Influence a firm's policies by gaining a seat on its board of directors.5. Which of the following is least likely a type of hedge fund strategy?A. Event-driven.B. Market-neutral.C. Exchange-traded.。

CFA一级模考

CFA一级模考题1 . A stock's price currently is $100. An analyst forecasts the following for the stock:The normalized trailing price earnings (P/E) ratio will be 12x.The stock is expected to pay a $5 dividend this coming year on projected earnings of $10 per share.If the analyst were to buy and hold the stock for the year, the projected rate of return based on these forecasts is closest to:A . 15%B . 20%C . 25%解析：C2 . Which of the following statements about short sales is least accurate?A. Proceeds from short sales cannot be withdrawn from the account.B. The short seller must pay the lender of the stock any dividends paid by the company.C. The short seller is required to replace the borrowed securities within six months of a short sale.解析：CThere is no maximum time for which a security can be borrowed. It must be returned whenever the lender requires it to be.3 . Which of the following firms' earnings are likely to exhibit the greatest degree of sensitivity to the business cycle?A. Furniture producer with high fixed costs as a proportion of total costs.B. Entertainment producer with high variable costs as a proportion of total costs.C. Food and beverage producer with high fixed costs as a proportion of total costs.解析：AConsumers buy fewer durable goods, such as furniture, during recessions and buy more during expansions. As a result, producers of these goods tend to have cyclical demand, revenues, and earnings. Operating leverage (high fixed costs as a proportion of total costs) also contributes to cyclicality of earnings.4 . The type of share voting most likely to result in significant minority shareholders having anapproximately proportional representation on the board of directors is:A. statutory voting.B. weightedvoting.C. cumulative voting.解析：CUnder cumulative voting, shareholders receive one vote per share for each board position election but can vote them for any board candidate or spread them over multiple candidates. This allows, for example, a holder of 20% of the shares to elect one of five board members. Under statutory voting, a minority shareholder could not elect any board members based only on their share voting rights.5 . Which of the following indexes is most likely to be rebalanced on a regular basis?A. Price-weighted index.B. Equal-weightedindex.C. Market-capitalization weighted index.解析：BEqual-weighted indexes require regular and frequent rebalancing, because price changes of their component securities will cause component weights to drift away from their target weights.Price-weighted indexes and market-capitalization weighted indexes generally do not require regular rebalancing, because both the target weight and actual weight of each security varies with the price of that security.。

CFA一级模考

CFA一级模考题1 .When a firm operates under conditions of perfect competition, marginal revenue always equals:A)total cost.B)price.C)average variable cost.The correct answer was: BWhen a firm operates under conditions of perfect competition, marginal revenue always equals price. This is because, in perfect competition, price is constant (a horizontal line) so that marginal revenue is constant.2 . Which of the following statements about the short-run and long-run decision time frames is most accurate?A)In the long run, quantities of some resources are fixed.B)In the long run, a firm can adjust its input quantities, production methods, and plant size.C)In the short run, technology of production is variable.The correct answer was BIn the short run, quantities of some resources, including technology of production, are fixed. Typically, economists treat labor and raw materials as variable, holding plant size, the amount of capital equipment, and technology constant. In the long run, all factors of production are assumed to be variable.3 . A decrease in the price of Good Y can result in a decrease of the quantity of Good Y demanded by consumers if the substitution effect:A)and the income effect are negative.B)is positive and the income effect is negative and larger than the substitution effect.C)is negative and larger than the positive income effect.The correct answer was BIf the price of Good Y decreases, the substitution effect will have a positive impact on the quantity demanded of Good Y. Thus, the only way that quantity demanded of Good Y can decrease is if there is a negative income effect that is greater in magnitude than the substitution effect; i.e., if Good Y is aGiffen good.4 . A monopolist will continue expanding output as long as:A)marginal revenue is positive.B)marginal revenue is greater than marginal cost.C)economic profit is greater than zero.The correct answer was BThe optimum behavior of all firms is to produce until the point where MR = MC. So, the monopolist can increase total profit by increasing production as long as marginal revenue is greater than marginal costs.5 . Which of the following conditions is most likely to exist for a typical production process when average product is at its maximum?A)Marginal product is increasing.B)Marginal cost is at a minimum.C)Average variable cost is at a minimum.The correct answer was CWhen average product is at a maximum, average variable cost is at a minimum. At the corresponding labor and output level, marginal product is decreasing and marginal cost is increasing.。

CFA一级模考

CFA一级模考题1 . The actual incidence of a tax imposed on buyers or sellers is most accurately defined as:A)the amount of tax times the equilibrium quantity.B)the proportion of the tax burden borne by buyers and sellers.C)the party legally responsible for paying the tax.The correct answer was BTax revenue is the amount of a tax times the equilibrium quantity. Statutory tax incidence refers to who is legally responsible for paying a tax. Actual tax incidence represents the extent to which buyers bear the cost of the tax through a higher price paid and sellers bear the cost through a lower price received.2 . An internal combustion engine is best described as a(n):A)finished good.B)factor of production.C)intermediate good.The correct answer was CEngines are most likely to be considered intermediate goods because they are used in the production of such finished goods as motor vehicles. They are unlikely to be considered finished goods, even though consumers might occasionally purchase them, because their primary use is in the production of other goods that are driven by engines.3 . Other things equal, an increase in the price of a good will increase:A)quantity demanded.B)quantity supplied.C)neither quantity supplied nor quantity demanded.The correct answer was: BProducers of a good are typically willing to supply a greater quantity of a good when its price increases.4 . An attempt by that oligopolists to act with another firm in setting a higher price is called:A)prisoner's dilemma.B)collusion.C)high economic profits.The correct answer was BCollusion is when firms organize into an association to increase profits by controlling prices and output. Collusion can take place when an industry has a small number of competitors and high barriers to entry.5 . Which of the following statements is least accurate with regard to the efficiency of monopolistic competition?A)The expense of advertising and promotion may not be justified by their benefit to consumers.B)Monopolistic competition is at least as efficient as perfect competition.C)Consumers benefit from brand name promotion and advertising.The correct answer was BThe efficiency of monopolistic competition is unclear. Consumers may make better purchasing decisions due to the information content of brand name promotion and advertising. However, there are those that argue that the increased cost of advertising and sales is not justified by the benefits of these activities and represent inefficient use of resources.。

CFA一级模考

CFA一级模考题1 . Over the long term, the annual returns and standard deviations of returns for major asset classes have shown:A) a positive relationship.B) a negative relationship.C) no clear relationship.The correct answer was AIn most markets and for most asset classes, higher average returns have historically been associated with higher risk (standard deviation of returns).2 . The market portfolio in Capital Market Theory is determined by:A) a line tangent to the efficient frontier, drawn from any point on the expected return axis.B) the intersection of the efficient frontier and the investor's highest utility curve.C) a line tangent to the efficient frontier, drawn from the risk-free rate of return.The correct answer was CThe Capital Market Line is a straight line drawn from the risk-free rate of return (on the Y axis) through the market portfolio. The market portfolio is determined as where that straight line is exactly tangent to the efficient frontier.3 . The ratio of a portfolio’s standard deviation of return to the average standard deviation of the securities in the portfolio is known as the:A) diversification ratio.B) Sharpe ratio.C) relative risk ratio.The correct answer was AThe diversification ratio is calculated by dividing a portfolio’s standard deviation of returns by the average standard deviation of returns of the individual securities in the portfolio.4 . Which of the following is the risk that disappears in the portfolio construction process?A) Unsystematic risk.B) Systematic risk.C) Interest rate risk.The correct answer was AUnsystematic risk (diversifiable risk) is the risk that is eliminated when the investor builds awell-diversified portfolio.5 . If the standard deviation of stock A is 10.6%, the standard deviation of stock B is 14.6%, and the covariance between the two is 0.015476, what is the correlation coefficient?A) +1.B) 0.0002.C) 0.The correct answer was AThe formula is: (Covariance of A and B) / [(Standard deviation of A)(Standard Deviation of B)] = (Correlation Coefficient of A and B) = (0.015476) / [(0.106)(0.146)] = 1.。

CFA一级模考

4 . A firm has an expected dividend payout ratio of 50%, a required rate of return of 12% and a constant growth rate of 6%. If earnings for the next year are expected to be $4.50, the value of the stock today is closest to: A)$39.75. B)$33.50. C)$37.50.
The correct answer was C A basket of listed depository receipts (BLDR) is an exchange traded fund that represents a portfolio of depository receipts.
3 . Given the following information, compute price/book value. A)2.0X. Book value of assets = $550,000 Total sales = $200,000 Net income = $20,000 Dividend payout ratio = 30% Operating cash flow = $40,000 Price per share = $100 Shares outstanding = 1000 Book value of liabilitie. C)2.5X.
Book value of equity = $550,000 - $500,000 = $50,000 Market value of equity = ($100)(1000) = $100,000 Price/Book = $100,000/$50,000 = 2.0X

CFA一级模考

CFA一级模考题1 . Unlike members of free trade areas, customs union members:A. adopt a single currency.B. remove barriers to trade with all members.C. adopt uniform trade restrictions with non-members. .解析：C Customs unions adopt uniform trade restrictions with non-members. Customs union members do not adopt a single currency. Both free trade areas and customs unions remove trade barriers among their members.2 . In utility analysis, a consumer's optimal bundle of goods lies on an indifference curve that is:A. most preferred by the consumer.B. tangent to the consumer's budget line.C. contained within the consumer's opportunity set.解析：B Based on utility analysis, the optimum bundle of goods lies on the consumer's highest attainable indifference curve, at the point where this indifference curve is tangent to the consumer's budget line. The point of tangency is the only point at which this indifference curve intersects the consumer's opportunity set of attainable bundles. The consumer would prefer bundles that lie on higher indifference curves, but those bundles are unaffordable given the consumer's budget constraint.3 . Reasons why the unemployment rate is a lagging indicator of the business cycle least likely include:A. discouraged workers who begin seeking work.B. action lag in the implementation of unemployment insurance.C. high costs to employers of frequently hiring or firing employees.解析：B Unemployment insurance is an example of an automatic stabilizer that is not subject to the action lag of discretionary fiscal policy tools. One reason why the unemployment rate is a lagging indicator is the fact that employers are slow to lay off employees early in recessions and slow to add employees early in expansions, because frequent hiring and firing has high costs. Another reason is that early in expansions, more discouraged workers (who are not counted as unemployed because they are out of the labor force) may begin seeking work (thereby re-entering the labor force) than the number of new jobs that are available, which increases the unemployment rate.4 . A natural monopoly is most likely to exist when:A. economies of scale are great.B. average total cost increases as output increases.C. a single firm owns essentially all of a productive resource解析：A A natural monopoly may exist when economies of scale are great. The large economies of scale mean that a single producer results in the lowest production costs.5 . Which of the following statements about types of nonrecurring items under U.S. GAAP is least accurate?A. Unusual or infrequent items are included in income from continuing operations.B. Extraordinary items are unusual and infrequent items that are reported net of taxes and included in nonrecurring income from continuing operations.C. Discontinued operations are reported net of taxes below income from continuing operations.解析：B Extraordinary items are unusual and infrequent items that are reported separately, net of tax, after net income from continuing operations.。

CFA一级模考

CFA一级模考题1 . Willier is the research analyst responsible For following Company X. All the information he has accumulated and documented suggests that the outlook for the company's new products is poor, so the stock should be rat ed a weak "hold.” During lunch, however, Willier overhears a financial analyst from another firm whom he respects offer opinions that conflict with Willier's forecasts and expectations. Upon returning to his office, Willier releases a strong "buy" recommendation to the public. Willier:A violated the Standards by failing to distinguish between facts arid opinions in his recommendation.B violated the Standards because he did not have a reasonable and adequate basis for his recommendation.C was in full compliance with the Standards.B is correct. This question relates co Standard V(A)-Diligence and Reasonable Basis.The opinion of another financial analyst is not an adequate basis for Willier's action in changing the recommendation. AnswerC is thus incorrect. so is answer A because, although it is true that members and candidates must distinguish between facts and opinions in recommendations, the question does not illustrate a violation of that nature. If the opinion overheard by Willier had sparked him r:o conduct additional research and investigation that justified a change of opinion, then a changed recommendation would be appropriate.2 . An investment management firm has been hired by ETV Corporation to work on an additional public offering for the company. The firm's brokerage unit now has a "sell" recommendation on ETV but the head of the investment banking department has asked the head of the brokerage unit to change the recommendation from "sell" to "buy." According to the Standards, the head of the brokerage unit would be permitted to:A increase the recommendation by no more than one increment (in this case, to a "hold" recommendation).B place the company on a restricted list and give only factual information about the company.C assign a new analyst to decide if the stock deserves a higher rating.B is correct.This question relates to Standard I(B)-Independence and Objectivity. When asked to change a recommendation on a company stock to gain business for the firm, the head of the brokerage unit must refuse in order to maintain his independence and objectivity in making recommendations. He must not yield to pressure by the firm's investment banking department.To avoid the appearance of a conflict of interest, the firm should discontinue issuing recommendations about the company. Answer A is incorrect; changing the recommendation in any manner that is contrary to the analyst's opinion violates the duty to maintain independence and objectivity. Answer C is incorrect because merely assigning a new analyst to decide whether the stock deserves a higher rating will not address the conflict of interest.3 . Albert and Tye, who recently started their own investment advisory business, have registered to take the Level III CFA examination. Albert's business card reads, "Judy Albert, CFA Level II." Tye has not put anything about the CFA designation on his business card, but promotional material that he designed for the business describes the CFA requirements and indicates that Tye participates in the CFA Program and has completed Levels I and II. According to the Standards:A Albert has violated the Standards but Tye has notB Tye has violated the Standards but Albert has not.C Both Albert and Tye have violated the StandardsA is correct. Standard VII(B)-Reference to CFA Institute, the CFA Designation, and the CFA Program is the subject of this question. The reference on Albert's business card implies that there is a "CFA Level Ⅱ" designation; Tye merely indicates in promotional material that he is participating in the CFA Program and has completed Levels Ⅰ and Ⅱ . Candidates may not imply that there is some sort of partial designation earned after passing a level of the CFA exam. Therefore, Albert has violated Standard VII(B). Candidates may communicate that they are participating in the CFA Program, however, and may state the levels that they have completed. Therefore, Tye has not violated Standard VⅡ(B).4 . Scott works for a regional brokerage firm. He estimates that Walkton Industries will increase its dividend by US$1.50 a share during the next year. He realizes that this increase is contingent on pending legislation that would, if enacted, give Walkton a substantial tax break. The U.S. representative for Walkton’s home district has told Scott that. although she is lobbying hard for the bill and prospects for its passage are favorable, concern of the U.S. Congress over the federal deficit could cause the tax bill to be voted down. Walkton Industries has not made any statements about a change in dividend policy. Scott writes in his research report, "We expect Walkton's stock price to rise by at least US$8.00 a share by the end of the year because the dividend will increase by US$1.50 a share. Investors buying the stock at the current time should expect to realize a total return of at least 15 percent on the stock." According to the Standards:A Scott violated the Standards because he used material inside information.B Scott violated the Standards because he failed to separate opinion from fact.C Scott violated the Standards by basing his research on uncertain predictions of future government action.B is correct. This question relates to Standard V(B)-Communication With Clients and Prospective Clients. Scott has issued a research report stating that he expects the price of Walkton Industries stock to rise by US$8 a share "because the dividend will increase” by US$1.50 per share. He has made this statement knowing that the dividend wiIl increase only if Congress enacts certain legislation, an uncertain prospect. By stating that the dividend will increase.Scott failed to separate fact from opinion. The information regarding passage of legislation is not material nonpublic information because it is conjecture, and the question does not state whetherthe U.S. Representative gave Scott her opinion on the passage of the legislation in confidence. She could have been offering this opinion to anyone who asked. Therefore, statement A is incorrect. It may be acceptable to base a recommendation, in part, on an expectation of future events, eventhough they may be uncertain. Therefore, answer C is incorrect.5 . Which one of the Following actions will help to ensure the fair treatment of brokerage firm clients when a new investment recommendation is made?A Informing all people in the firm in advance that a recommendation is to be disseminated.B Distributing recommendations to institutional clients prior to individual accounts.C Minimizing the time between the decision and the dissemination of a recommendation.C is correct. 7his question, which relates to Standard III(B)-Fair Dealing, tests the knowledge of the procedures that will assist members and candidates in treating clients fairly when making investment recommendations. The steps listed in C will all help ensure the fair treatment of clients. Answer A may have negative effects on the fair treatment of clients. The more people who know about a pending change, the greater the chance that someone will inform some clients before the information's release. The firm should establish policies that limit the number of people who are aware in advance that a recommendation is to be disseminated. Answer B, distributing recommendations co institutional clients before distributing them to individual accounts, discriminates among clients on the basis of size and class of assets and is a violation of Standard JII(B).。

CFA一级模考

CFA一级模考题1. Which of the following is a characteristic of perfect competition?A) The products of different firms are sold at different prices.B) There are a few sellers.C) There are no barriers to entry into the market.The correct answer was: C There are no barriers to entry into the market.The only true statement listed in the question is that, under perfect competition there are no barriers to entry into the market. Each of the other possible answers is not a characteristic of perfect competition. While the competitors can earn positive economic profits in the short-run, they cannot earn long term economic profits due to ease of entry and exit.2 .For a linear demand curve, at the price where elasticity is -2.0, reducing prices will:A) increase total revenue and we are at the point of maximum total revenue.B) increase total revenue and we are not at the point of maximum total revenue.C) decrease total revenue and we are not at the point of maximum total revenue.The correct answer was: BIf the price elasticity of demand is -2.0, this indicates that the percentage change in quantity demanded is twice the percentage change in price. Thus, a decrease in price will be more than offset by the increase in quantity, and total revenue will increase. We are not at the point of maximum total revenue which is where elasticity is -1.0—the point of unit elastic demand.3 .Which of the following is least likely to be considered a feature that is common to both monopolistic competition and perfect competition?A) Low or no barriers to entry.B) Extensive advertising to differentiate products.C) Zero economic profits in the long run.The correct answer was: BThe only item listed in the question that monopolistic competition and perfect competition do not have in common is the use of advertising to differentiate their products. Extensive advertising is a key feature of monopolistic competition.4 .In the long-run, a firm operating under perfect competition will:A) produce a quantity where marginal revenue is less than marginal cost.B) generate zero economic profit.C) face a vertical demand curve.The correct answer was: BA firm operating under conditions of perfect competition will generate zero economic profit inthe long run. Firms may generate economic profits in the short run, but due to the lack of entry barriers, new competitors will enter the market and prices will adjust downward untileconomic profits become zero.5 .Which of the following is least likely a characteristic of perfect competition?A) The demand curve for an individual firm is a vertical line.B) The size of each firm is small relative to the size of the overall market.C) The products produced within a given market are homogenous.The correct answer was: A The demand curve for an individual firm is a vertical line.Under perfect competition individual firms have no control over price resulting in a demand schedule that is perfectly elastic or horizontal.。

(完整版)CFA一级模考试题及答案

ANSWERS FOR MOCK EXAM 1 (MORNING SESSION)1. D. Although Terence has passed Level III, he has not yet received his charter andcannot use the CFA designation. The description provided in the cover letterproperly describes his situation.2. C. Amy must take both actions-notifying her immediate supervisor and deliveringa copy of the Code and Standards.3. D.4. C. Members may undertake an independent practice that could result incompensation or other benefit in competition with their employer provided theyobtain written consent from both their employer and the party for whom theyundertake independent practice.5. C. To maintain his objectivity, Keith should pay his own hotel bill. Because theitinerary required charter flights due to a lack of commercial transportation, A& K Limited can appropriately provide them.6. C. Under ERISA, fiduciaries must act solely in the interest of, and for theexclusive purpose of benefiting, the plan participants and beneficiaries.7. B. Daniel must give priority to transactions for clients and employers overtransactions for his children.8. A. To avoid violating the standards, members cannot trade until the member'sclients and employers have had an adequate opportunity to act on therecommendation.9. C. The requirements of Standard IV (B.5) are not intended to prevent Lambertfrom cooperating with an investigation by AIMR's Professional ConductProgram.10. B. Vivian should disclose to her clients and prospects her husband's holdings inDouble Limited because this matter could be expected to impair her ability tomake unbiased and objective recommendations.11. B.12. B. Accruals accounting is required.13. C. S tandard I(B) Fundamental Responsibilities. Prohibition against participating orassisting in illegal and ethical violations. If Roberts suspects someone isplanning or engaging in illegal activities, he should: (1) determine the legalityof the activities, (2) disassociate himself from the illegal or unethical activity,and (3) urge his firm to attempt to persuade the perpetrator to stop. The AIMRStandards of Professional Conduct do not require that Roberts report suchactivities to the authorities, but the law might.14. C. Standard III(C) Disclosure of Conflicts to Employer. Gloria should disclose toher employer all matters that could reasonably be expected to interfere with herability to make unbiased and objective recommendations. Her service as atrustee of the Well Limited Foundation for Heart Research is most likely to beconsidered a conflict of interest with her responsibility to her employer.15. C. Standard III (E) Responsibilities of Supervisors. Paul may delegate supervisoryduties, but such delegation does not relieve him of his supervisoryresponsibility.16. A. Standard IV (B.3) Fair Dealing. Johnson violated the standard on fair dealingbecause he did not deal fairly and objectively with all clients and prospectswhen disseminating investment recommendations. Instead, he showedfavoritism to his best clients. In disseminating investment recommendations,Johnson should consider making the information available to clients based ontheir interest and suitability. A change of recommendation from buy to sell orsell to buy is generally material.17. D. Standard IV(B.5) Preservation of Confidentiality. Choice B is false because thisstandard prohibits members from executing settlement agreements that preventmembers from providing information in an investigation by AIMR'sProfessional Conduct Program (PCP). Choice C is false because a personcannot withhold information during PCP investigations. Choice A is falsebecause if a member receives information due to his or her special relationshipwith the client indicating illegal behavior on the past of the client, the membermay not have an obligation to inform the appropriate authorities.18. A. Standard IV(B.6) Prohibition against Misrepresentation. Members are notpermitted to make any assurances or guarantees about any investment, except tocommunicate accurate information. The statement that investment grade bondshave less default risk than junk bonds is an accurate statement.19. C. Use BGN node: n = 10; i = 12 PMT = 1,000, compute FV = 19.654.5820. B. The present value of a perpetuity is PV = A/r = 500/0.1 = $5,000.21. B. i = 6/12 = 0.5; n = 10x12 = 120; PV = 40,000 Compute PMT22. A.23. A. A binomial random variable has an expected value or mean equal to np andvariance equal to np(1-p).Mean = 12(0.5) = 6; variance (12)(0.5)(1-0.5) = 324. D.25. B. Rbt-1 = In St+1 /St = (1+RL1-1) = In (40/25) = 0.47. Thus, 47% is thecontinuously computed return for the one-year holding period.26. B. Choice A describes cross-sectional data.Choice B describes time-series data.27. D. The dependent variable, Y, is equal to the intercept, b0, plus a slope coefficient,P(positive) - P(analyst and positive)P (A or positive) = 130/200 + 140/200 - (100/130) = 0.58 or 58%36. B. Savings increases to hold interest rates constant. This means aggregate demandchanges little.37. C. The empirical evidence on the relationship between budget deficits and interestrates is mixed.Few studies show a significant positive short-term link between budget deficitsand real interest rates.38. B. Expansion = 1 / reserve requirement = 1/0.25 = 4(4)(150) = 60039. C. People realize this leads to inflation in the long run, so they reduce their moneyholdings. Output rises because the increase is unexpected.40. C. In purely competitive markets, there are a large number of dependent firms.41. D.42. D.43. C.44. C.45. D. Choice A: Accrual accounting does not require the receipt of cash for assuranceof payment to exist.Choice C and D: These relate only to the condition of completion of theearnings process.46. D.47. A Demand for currency decreases when real interest rates decrease because ofdecreased capital flows.48. C Foreign exchange quotations can be expressed on a direct basis - the homecurrency price of another currency—or an indirect basis-- the foreign currencyprice of the home currency.49. C F/S= (1 + r D)/(l + r F) where rates are listed as DC/FCF = (1.3/1.25)(0.4) = 0.41650. C. Direct method:Net income 1000Depreciation 70Goodwill 30Change in accounts receivable 25Change in inventory (35)Change in accounts payable 30Change in wages payable 15Operating cash flows 113551. B. Purchase equipment (200)Sell truck 25Investing cash flows (175)52. D. Sale of common stock 100Issuance of bonds 20Financing cash flows 12053. D. A common size balance sheet expresses all balance sheet accounts as apercentage of total assets.54. C. Original shares of common stock = 1,000,000(12) = 12,000,000Stock dividend = 200,000(12) = 2,400,000New shares of common stock = 200,000(3) = 600,000Total shares of common stock = 15,000,000/12= 1,250,000 Stock dividends are assumed to have been outstanding since the beginning ofthe year.55. D. Inventory turnover, defined as COGS/Average inventory, if often meaninglessfor LIFO companies due to the mismatching of costs. The numerator representscurrent costs, whereas the denominator reports outdated historical costs. Thus,the turnover ratio under LIFO will, when prices decrease, trend lower becauseof small COGS and larger inventory. Net profit margin, defined as EA T/Sales,is higher during periods of decreasing profits for LIFO companies. LIFO leadsto a smaller COGS, which reduces EAT, without affecting sales.56. A. In this situation, LIFO results in lower cost of goods sold because it uses themore recent and lower costs than LIFO. LIFO results in lower cash flowsbecause the cash on income taxes is a percentage(the marginal tax rate) of thedifference in inventory values. Thus, with LIFO:Sales-COGS (smaller)EBT (larger)-Taxes (larger) Because taxes paid out are a cash outflow.EAT (larger) If taxes are larger, then cash flow ill be smaller.57. D. COGSFIFO = COGSLIFO - (Ending LIFO Reserve - Beginning LIFO Reserve)COGSFIFO = $250,000 - ($8,000-$5,000) = $247,00058. D. Compared to expensing, capitalizing results in higher profitability in earlyyears and lower profitability in later years.59. C.60. D. The present value of the minimum lease payments equals or exceeds 90 percentof the value of the fair value of the leased property.61. B. Capital lease affects on the income statement:Step1: Calculate the depreciation charge: ($3,500,000-$450,000)/10 = $305,000Step2: Calculate the interest expense: $3,500,000(0.15) = $525,000Total expense: $305,000+$525,000 = $830,00062. A.63. C.64. A.65. B.66. D.67. B. Dealer-markets are price-driven markets.68. D.69. C.70. C. P/E = Dividend payout ratio/(k-g)Dividend payout ratio = 1 - retention ratio = 1-0.2 = 0.8P/E = 0.8(0.15-0.08) =5.671. B. k = D1/P0+g = $4/$25+0.09 = 0.2572. A. Step1: Calculate the ending index value = ($100)(5) = $500Step2: Calculate the expected return.E(R1) = [Dividends + (Ending value - Beginning value)]/(Beginning value)= [40+(500-490)]/$490 = 0.1 or 10%73. D. The critical factors determining the franchise P/E are the difference between theexpected return on the new opportunities (R) and the current cost of capital (k)and the size of these growth opportunities relative to the firm's current size.74. A.75. C.76. D The completed contract method less net income in the periods beforeconstruction is completed, but not at the end of the contract, than using thepercentage-of-completion method. This is because the completed contractmethod recognizes revenue and expense only when the contract has beencompleted.77. A. N et income 1,000Adjustment for non-cash andnon-operating itemsDepreciation 100Deferred taxes (increase) 40Profit from sale ofequipment (10)Adjustment for workingcapital items:Accounts receivable (decrease) (120)Inventory (increase) (40)Accounts payable (increase) (20)Wages payable (decrease) (10)Cash flow from operations 94078. D79. A When inventory and accounts receivable increase, this is a use of cash (cashoutflow); when assets decrease, this is a source (cash inflow). When accountspayable increase, this is a source of cash (cash inflow); when liabilitiesdecrease, this is a use (cash outflow).80. B Cash conversion cycle = receivables days + inventory processing days -payables payment period.Receivables days = 365/receivabies turnover = 365/30 = 12.17 days.Inventory processing days = 365/inventory turnover = 365/15 = 24.33 days.Payables payment period = 365/payabIes turnover = 365/20 = 18.25days.Cash collection cycle = 12.17 + 24.33 – 18.25 = 18.25 days.81. B Choice A: Buying fixed assets on credit does not affect current assets butincreases current liabilities. Therefore, the current ratio falls.Choice B: Buying inventory on account increases both inventory and accountspayable. Because the current ratio started off below I, the ratio will increase.Choice C: Selling marketable securities for cash does not affect the amount ofcurrent assets and leaves the current ratio unaffected,Choice D: Paying off accounts payable from cash lowers current assets andcurrent liabilities by the same amount. Because the current ratio started offbelow 1, the ratio will fall.82. D ROE = Profit margin x Total asset turnover x financial leverageROE = (0.3)(2.1)(0.5)= 0.315 or 31.5%83. A ROE = [(S/A)(EBIT/S) - (I/A)](A/EQ)(I - t)ROE = [(2.5)(0.2) - (0.08)](1.2)(0.6) = 0.30 or 30%84. A85. B EPS = ($180,000 - $4,000) / 50,000 = $3.52 per share86. B87. D88. C These relationships are reversed in the latter years of the asset's life if the firm'scapital expenditures decline.89. D90. C.91. C.92. D.93. D. Absolute yield spread = Yield on Bond A - Yield on Bond B = 10%-7% = 3%94. B. Relative yield spread = (Yield on Bond A - Yield on Bond B)/(Yield on BondB)= (10%-7%)/7% = 0.43 = 43%95. B. Yield ratio = (Yield on Bond A)/(Yield on Bond B) = 6%/7% = 1.4396. B. Current yield = (Annual dollar coupon interest)/(Price of the bond) = 8/130 =0.0625 or 6.25%97. A. When the stock's price (S) - the strike price (X) is positive, a call option isin-the-money. 25-X = 8 so X = 17.98. A.99. A. The writer of put loss = $60-premiun$5 = $55The writer of call gets a maximum gain of $8100. A.101. C.102. D.103. A.104. D.105. B.106. D.107. C.108. A. Securities that fall on the SML are properly valued.109. A.110. A. If a stock's beta were equal to 1, an investor would be expected to get the market rate of return from buying the stock. E(R) = 5%+1(10%-5%) = 10% 111. D112. D113. C114. B Perfect positive correlation (r = + 1) of the returns of two assets offers no risk reduction, whereas perfect negative correlation (r = -1) offers the greatest riskreduction.115. B Portfolio A does not lie on the efficient frontier because it has a lower return than Portfolio B but has greater risk. Portfolio D does not lie on the efficientfrontier because it has higher risk than Portfolio C but has the same return. 116. C.117. D Choice A: Unsystematic risk is diversifiable risk.Choice B: Systematic risk is undiversifiable risk.Choice C: Total risk= Systematic risk+ Unsystematic risk.118. C119. D CAPM specifies the factor (market risk) but APT does not.120. A。

CFA一级模考

The correct answer was C Prices tend to decrease in the growth stage as firms begin to realize economies of scale in production. The stages of the industry life cycle, in order, are embryonic, growth, shakeout, mature, and decline. Industry growth is slow during the embryonic stage as firms develop products and attempt to gain customer acceptance.
A)$121.79. B)$34.95. C)$26.64.
The correct answer was
A
The required return for GoFlower is 0.04 + 1.1(0.12 – 0.04) = 0.128 or 12.8%. The expect dividend is ($3.10)(1.10) = $3.41. GoFlower’s common stock is then valued using the infinite per iod dividend discount model (DDM) as ($3.41) / (0.128 – 0.10) = $12owing information and the dividend discount model to find the value of GoFlower, Inc.’s, common stock. Last year’s dividend was $3.10 per share. The growth rate in dividends is estimated to be 10% forever. The return on the market is expected to be 12%. The risk-free rate is 4%. GoFlower’s beta is 1.1.