CFA考试一级章节练习题精选0329-31(附详解)

CFA考试一级章节练习题精选0329-35(附详解)

CFA考试一级章节练习题精选0329-35（附详解）1、An investor examines the following rate quotes for the Brazilian real and the Australian dollar:If the investor shorts BRL500,000 he will achieve a risk-free arbitrage profit (in BRL) closest to:【单选题】A.–6,327.B.1,344.C.6,405.正确答案:B答案解析:“Currency Exchange Rates,” William A. Barker, CFA, Paul D. McNelis, and Jerry Nickelsburg2013 Modular Level I, Vol. 2, Reading 21, Section 3.3Study Session 6–21–f, gExplain the arbitrage relationship between spot rates, forward rates and interest rates.Calculate and interpret a forward rate consistent with a spot rate and the interest rate in each currency.B is correct. If the right side of the following equation is greater than the left, an arbitrage opportunity exists.= Spot rate: number of units of foreign currency (price currency) per one unit of domestic currency=Forward rate: number of units of foreign currency (price currency) per one unit of domestic currency= Domestic interest rate= Foreign interest rateThe arbitrage profit is the right side of the equation minus the left side.Left side of equation: BRL500,000 × (1 + 0.041) = BRL520,500.Right Side:Arbitrage profit = BRL521,844 (right side above) – BRL520,500 (left side above) = 1,344.2、The Nash equilibrium for a duopoly faced with a “Prisoners’ Dilemma” set of choices is most likely to result in:【单选题】A.both firms earn economic profits.B.neither firm earns an economic profit.C.one of the firms earns an economic profit but the other firm does not.正确答案:B答案解析:“Monopolistic Competition and Oligopoly,” Michael Parkin2010 Modular Level I, Vol. 2, pp. 245-247Study Session 5-20-eDescribe the oligopoly games including the Prisoners’ Dilemma.The Nash equilibrium for the duopoly is that both firms cheat on their collusive agreement. Prices and quantities produced are the same as those in perfect competition; neither firm earns an economic profit.3、Assume that at current production and consumption levels, a product exhibits price elasticity of demand equal to 1.20 and elasticity of supply equal to 1.45. The true economic consequences of taxes imposed on the seller of such a product are most likely borne:【单选题】A.by the seller.B.by the buyer.C.partly by the buyer and partly by the seller.正确答案:C答案解析:“Elasticity,” Michael Parkin2011 Modular Level I, Vol. 2, pp. 27-28“Markets in Action,” Michael Parkin2011 Modular Level I, Vol. 2, pp. 80-84Study Session 4-13-a; 4-15-cCalculate and interpret the elasticities of demand (price elasticity, cross elasticity, and income elasticity) and the elasticity of supply and discuss the factorsthat influence each measure.Explain the impact of taxes on supply, demand, and market equilibrium, and describe tax incidence and its relation to demand and supply elasticity.As the good exhibits neither perfectly elastic nor perfectly inelastic demand or supply (see pp. 27-28), the incidence of taxation will be shared by buyers and sellers regardless of whether the tax is placed on buyers or on sellers.4、Which of the following statements about a central bank's actions would mostlikely cause an immediate increase of the banking system's excess reserves?【单选题】A.Decreasing the policy rate.B.Selling securities in the open market.C.Decreasing the required reserve ratio.正确答案:C答案解析:降低法定存款准备金率会导致商业银行吸收存款后有更多的资金可以用于放贷，从而增加了银行系统的可贷资金余额，这种影响也最为直接。

CFA考试一级章节练习题精选0329-60(附详解)

CFA考试一级章节练习题精选0329-60（附详解）1、The following information is available for a company:In 2010, the company most likely:【单选题】A.paid a dividend of $1,000B.paid a dividend of $5,000C.did not pay a dividend because they incurred a loss.正确答案:B答案解析:“Financial Reporting Mechanics,” Thomas R. Robinson, CFA, Jan Hendrik van Greuning, CFA, Karen O’Connor Rubsam, CFA, R. Elai ne Henry, CFA, and Michael A. Broihahn, CFA2010 Modular Level 1, Vol.3, pp. 43Study Session: 7-30-b, cExplain the accounting equation in its basic and expanded forms.Explain the process of recording business transactions using an accounting system based on the accounting equations.2、An analyst does research about gross profit margin and gathers the following informationabout a company in 2012 :● Average inventory is $2 000● Ending inventory of the year is $2 500● Total revenue is $20 000● Inventory turnover ratio is 5.5● Ta x rate is 40%The gross profit margin for the company is closest to:【单选题】A.27%B.31%C.45%正确答案:C答案解析:inventory turnover ratio = cost of goods sold/ average inventorygross profit = revenue - cost of goods soldgross profit margin = gross profit/ revenue所以，边际毛利率的计算如下：（$20 000 - 5.5 × $2 000）/$20 000 = 45%。

CFA考试一级章节练习题精选0329-48(附详解)

CFA考试一级章节练习题精选0329-48（附详解）1、The following tables present excerpts from financial statements for two merchandising companies following the format found in each of their annual reports.Which of the companies most likely prepares its financial statements in accordance with U.S. GAAP?【单选题】A.Both companiesB.Only Company AC.Only Company B正确答案:C答案解析:Company A prepares its financial statements under IFRS whereas company B uses U.S. GAAP. IFRS does not specify the order of presentation of current and noncurrent assets. Under U.S. GAAP, current assets are presented before long-term assets and current liabilities before long-term ones.2014 CFA Level 1"Understanding Balance Sheets," by Elaine Henry and Thomas R. RobinsonSection 2.12、Given the following information about a company:What is the most appropriate conclusion an analyst can make about the solvency of the company? Solvency has:【单选题】A.improved because the debt-to-equity ratio decreased.B.deteriorated because the debt-to-equity ratio increased.C.improved because the fixed charge coverage ratio increased.正确答案:A答案解析:“Financial Analysis Techniques,” Elaine Henry, Thomas R. Robinson, and Jan Hendrik van Greuning2012 Modular Level I, Vol. 3, pp. 364–366“Non-Current (Long-Term) Liabilities,” Elizabeth A. Gordon and Elaine Henry2012 Modular Level I, Vol. 3, pp. 574–575Study Session: 8-28-b, 9-32-lClassify, calculate, and interpret activity, liquidity, solvency, profitability, and valuation ratios.Calculate and interpret leverage and coverage ratios.A is correct. The debt–equity ratio decreased, thereby improving solvency; the fixed charge ratio remained the same.3、The following information for the current year is available for a company that prepares its financial statements in accordance with U.S. GAAP.The company’s operating profit (in $000s) is closest to:【单选题】A.1,850.B.2,050.C.2,300.正确答案:B答案解析:“Understanding Income Statements,” Elaine Henry, CFA, a nd Thomas R. Robinson, CFA 2013 Modular Level I, Vol.3, Reading 25, Section 4.2.3, Example 10, 5.3, 5.5Study Session 8–25–fDistinguish between the operating and non-operating components of the income statement.B is correct.4、An analyst is reviewing the property, plant, and equipment disclosure related to a company'swarehouse. The company uses the International Financial Reporting Standards (IFRS) revaluationmodel. The analyst would least likely be able to determine:【单选题】A.the carrying amount under the cost model.B.the original date of acquisition.C.how the fair value was obtained.正确答案:B答案解析:IFRS does not require disclosure of the original date of acquisition.CFA Level I"Long-Lived Assets," Elaine Henry and Elizabeth A. GordonSection 75、A company operating in a highly fragmented and competitive industry reported an increase in ROE over the prior year. Which of the following reasons forthe increase in ROE is least likely to be sustainable? The company:【单选题】A.increased the prices of its product significantly.B.decided to make greater use of long-term borrowing capacity.C.implemented a new IT system allowing it to reduce working capital levels as a percentage of assets.正确答案:A答案解析:“Understanding Income Statements,” Elaine Henry, CFA and Thomas R. Robinson, CFA2013 Modular Level I, Vol. 3, Reading 25, Section 5.3“Financial Analysis Techniques,” Elaine Henry, CFA, Thomas R. Robinson, CFA, and Jan Hendrik van Greuning, CFA2013 Modular Level I, Vol.4, Reading 28, Section 4.6.2“Introduction to Industry and Company Analysis,” Patrick W. Dorsey, CFA, Anthony M. Fiore, CFA and Ian Rossa O’Reilly, CFA2013 Modular Level I, Vol.5, Reading 50, Section 5.1.2Study Sessions: 8-25-e, 8-28-d, 14-50-gDescribe the financial reporting treatment and analysis of non-recurring items (including discontinued operations, extraordinary items, and unusual or infrequent items) and changes in accounting standards.Demonstrate the application of Dupont analysis of return on equity, and calculate and interpret the effects of changes in its components.Explain the effects of barriers to entry, industry concentration, industry capacity, and market share stability on pricing power and return on capital.A is correct.An increase in price is not sustainable in a fragmented and competitive industry. Fragmented industries tend to be highly price competitive because of the need to increase market share and to undercut prices in an attempt to steal share.。

CFA考试一级章节练习题精选0329-3(附详解)

CFA考试一级章节练习题精选0329-3（附详解）1、An analyst does research about deferred tax liability.If a previously recordeddeferred tax liability is not expected to reverse, which of the following is themost appropriate adjustment?【单选题】A.Decreasing financial leverage ratio.B.Increasing current ratio.C.Decreasing asset turnover ratio.正确答案:A答案解析:如果递延所得税负债在将来不会回转，分析师应该将递延所得税负债调整到权益中去，这样资产不变，权益增加，负债减少，会使得财务杠杆（即资产/权益）降低，但不会改变流动比率（current ratio）和总资产周转率（asset turnover ratio）。

2、Which of the following least accurately expresses the basic accounting equation?【单选题】A.Revenue - Expense = Net income.B.Assets = Liabilities + Owner's equity.C.Liabilities + Contributed capital + Beginning retained earnings = Assets.正确答案:C答案解析:选项A和B分别代表了利润表和资产负债表的基本等式。

选项C中应该是Liabilities +Contributed capital + Ending retained earnings = Assets，所以选项C是错的。

CFA考试一级章节练习题精选0329-40(附详解)

CFA考试一级章节练习题精选0329-40（附详解）1、The Semi-strong form efficient market hypothesis assumes the security pricesfully reflect information about:【单选题】A.industry trends.B.trading volumes.C.private information.正确答案:A答案解析:弱式有效市场（Weak-form efficient market）的价格充分反映了历史交易信息，包括价格和成交量。

半弱式有效市场（Semi-strong form efficient market）的价格充分反映了所有公开信息。

强式有效市场（Strong-form market efficient market）的价格充分反映了公开和内幕信息。

2、The issue of differences in accounting conservatism between companies is best addressed when companies are compared using which of the following ratios?【单选题】A.Price-to-earningsB.Price-to-cash flowC.Price-to-book value正确答案:B答案解析:“Introduction to Price Multiples,” John D. Stowe, CFA, Thomas R. Robinson, CFA, Jerald E. Pinto, CFA, and Dennis W. McLeavey, CFA2010 Modular Level I, Vol. 5, pp. 215-217Study Session 14-59-aDiscuss the rationales for, and the possible drawbacks to, the use of price-to-earnings (P/E), price-to-book value (P/BV), price-to-sales (P/S), and price-to-cash flow (P/CF) in equity valuation.Using price-to-cash flow rather than price-to-earnings addresses the issue of differences in accounting conservatism between companies (differences in quality of earnings).3、The weak-form market efficiency most accurately assumes that current security prices:【单选题】A.adjust rapidly to the release of all public information.B.fully reflect all past market information, including transactions by exchange specialists.C.fully reflect all information from public and private sources.正确答案:B答案解析:In the weak-form efficient market hypothesis, security prices fully reflect all past market data including transactions by exchange specialists.2014 CFA Level I“Market Efficiency,” W. Sean Cleary, Howard J. Atkinson, and Pamela Peters on DrakeSection 34、An analyst does research about equity valuation and gathers the followinginformation about a company and the economy.The current share price is$45, the price-to-earnings ratio is 15, the nominal risk-free rate is 3.1%,the risk premium is 7% , and the expected retention ratio is 40%.The best estimateof the company's dividend growth rate is:【单选题】A.6.1%B.7.4%C.14.1%正确答案:A答案解析:P/E = payout ratio/(k - g)，其中payout ratio = 1 - retention ratio = 1 -0.4=0.6，k = nominalrisk-free rate + risk premium = 3.1% + 7% = 10.1%，各数值代入有：15 = 0.6/(10.1% - g），得出g =6.1%。

CFA考试一级章节练习题精选0329-27(附详解)

CFA考试一级章节练习题精选0329-27（附详解）1、Which of the following share repurchase methods most likely result in the lowestcost to the company?【单选题】A.Buy in the open marketB.Buy a fixed number of shares at a fixed price.C.Repurchased by direct negotiation.正确答案:A答案解析:股份回购是指公司回购自己公司的普通股，回购的方式有如下3种：● 在公开市场购买。

董事会授权在一定时间内在公开市场上回购一定数量的股票。

公司可灵活选择买入的时机，相对使回购的成本最低。

● 公司以高于市场价进行要约收购买入一定数量的股票。

● 直接协议回购。

公司直接向持有大量股票的股东以高于市场价的价格买回股票。

通常这种回购是为了避免持有大量股票的股东在市场上抛售而造成股票下挫，或者是向敌意收购方买回股票。

2、An analyst estimates that an initial investment of ￡500,000 in a venture capital project will pay ￡6 million at the end of five years if the project succeeds and that the probability the project survives to the end of the fifth year is 25 percent. The required rate of return for the project is 19 percent. The expected net present value of the venture capital investment is closest to:【单选题】A.￡128,000.B.￡1,125,000.C.￡2,014,000.正确答案:A答案解析:”Alternative Investments,” Bruno Solnik and Dennis McLeavey2010 Modular Level I, Vol. 6, pp. 216-218Study Session 18-73-hCalculate the net present value (NPV) of a venture capital project, given the project’s possible payoff and conditional failure probabilities.The probability that the venture will pay 6 million at the end of five years is 25%. The probability of failure is 75%. The expected NPV if the project succeeds is 2,014,296 using FV = 6,000,000, I = 19%, n = 5 for a present value of 2,514,296 – 500,000 = 2,014,296.The NPV of the project is 0.25(2,014,296) + 0.75(–500,000) = ￡128,574. The investment has a positive NPV and should be accepted.3、A trader buys 500 shares of a stock on margin at $36 a share using an initial leverage ratio of 1,66.The maintenance margin requirement for the position is 30%. The stock price at which the margincall will occur is closest to:【单选题】A.$25.20.B.$30.86.C.$20.57.正确答案:C答案解析:Initial equity (%) in the margin transaction=1/Leverage ratio=1/1.66=0.60;Initial equity per share at the time of purchase=$36 × 0.60=$21.60;Price (P) at which margin call occurs:Equity per share/Price per share=Maintenance margin (%)=($21.60+P-$36)/P=0.30;0.7P=$14.40;P=$20.57.CFA Level I"Market Organization and Structure," Larry HarrisSection 5.24、An initial investment of $1 million in a venture capital project is expected to pay $10 million at the end of 5 years if it is successful. The probabilities of failure for the project are provided in the table below:If the cost of capital for the project is 18%, the project’s expected NPV is closest to:【单选题】A.-$731,200.B.$174,950.C.$906,150.正确答案:B答案解析:“Alternative Investments,” Bruno Solnik and Dennis McLeavey2011 Modular Level I, Vol. 6, pp. 216-218Study Session 18-74-hCalculate the net present value (NPV) of a venture capital project, given the project’s possible payoff and conditional failu re probabilities.B is correct because you calculate the probability of success as (1-.30) ×(1-.25) ×(1-.20) ×(1-.20)× (1-.20)=.2688. Then calculate the NPV from success906,150 Subtracting the NPV of failure, -1,000*(1-.2688 or .7312) = -731,200. The difference between the NPVs is the expected NPV of the project, 906,150-731,200=174,950.5、A project has the following cash flows (￡):Assuming a discount rate of 11% annually, the discounted payback period (in years) is closest to:【单选题】A.3.4.B.3.9.C.4.0.正确答案:B答案解析:“Capital Budgeting,” John D. Stowe, CFA and Jacq ues R. Gagne, CFA2013 Modular Level I, Vol.4, Reading 36, Section 4.4.Study Session 11-36-dCalculate and interpret the results using each of the following methods to evaluate a single capital project: net present value (NPV), internal rate of return (IRR), payback period, discounted payback period, and profitability index (PI).B is correct. The discounted cash flows and their cumulative sum are:After three years, $821.02 of the $1,525 investment is recovered, leaving $703.98 left to recover in the fourth year. Proportionately, only 0.88 (= $703.98/$800.36) of the cash flow in the fourth year is necessary to recover all of the investment. This makes the discounted payback equal to 3.9 years (rounded up from 3.88).。

CFA考试一级章节练习题精选0329-26(附详解)

CFA考试一级章节练习题精选0329-26（附详解）1、A company’s $100 par value perpetual preferred stock has a dividend rate of 7% and a required rate of return of 11%. The company’s earnings are expected to grow at a constant rate of 3% per year. If the market price per share for the preferred stock is $75, the preferred stock is most appropriately described as being:【单选题】A.overvalued by $11.36.B.undervalued by $15.13.C.undervalued by $36.36.正确答案:A答案解析:Value of perpetual preferred stockThe stock is overvalued by $75.00 – 63.64 = $11.36.2014 CFA Level I“Equity Valuation: Concepts and Basic Tools,” by John J. Nagorniak and Stephen E. WilcoxSection 4.12、A company’s selected data are as follows:Assuming that the company experiences volatile year-end book values of equity, its ROE for the year 2012 is closest to:【单选题】A.14.91%.B.17.15%.C.13.19%.正确答案:A答案解析:The company experiences volatile year-end book values of equity, the average book value is appropriate.ROE = Net income/Average book valueAverage book value = (11,550,000 + 15,015,000)/2 = $13,282,500ROE = $1,980,300/$13,282,500 = 14.91%2014 CFA Level I"Financial Analysis Techniques,” by Elaine Henry, Thomas R. Robinson, and Jan Hendrik v an GreuningSection 4.6.2“Overview of Equity Securities,” by Ryan C. Fuhrmann and Asjeet S. LambaSection 7.13、An analyst does research about tradingsessions.Which of the following statementsis most accurate to describe the characteristics of a call market?【单选题】A.Dealers who provide securities liquidity engage in proprietary trading.B.Gathering all trades to the same place at the same time makes it easier forbuyers to find sellers and vice versa.C.A willing buyer and seller can trade at anytime the market is open.正确答案:B答案解析:集合竞价市场(call market)主要是撮合买卖订单来决定单一价格，该价格往往在一些小的市场或者一些大的市场决定开盘价格时使用。

CFA考试一级章节练习题精选0329-28(附详解)

CFA考试一级章节练习题精选0329-27（附详解）1、An Australian firm purchased a patent for USD20,000 and machinery for USD21,500 from a U.S. firm when the exchange rates were as follows:The impact of these transactions on the capital account of Australia (in AUD) is closest to:【单选题】A.19,225.B.20,667.C.20,806.正确答案:A答案解析:“International Trade and Capital Flows,” Usha Nair-Reichert, PhD and Daniel Robert Witschi, PhD, CFA2013 Modular Level 1, Vol. 2, Reading 20, Section 4.2“Currency Exchange Rates,” William A. Barker, CFA, Paul D. McNelis, and Jerry Nickelsburg2013 Modular Level I, Vol. 2, Reading 21, Section 3.2Study Session 6-20-g, 6-21-dDescribe the balance of payments accounts including their components.Calculate and interpret currency cross rates.A is correct. The purchase of machinery is an import and affects the current account, not the capital account, so it is ignored. The purchase of a non-produced, non-financial asset (such as a patent) affects the capital account.The impact on the capital account in AUD is:USD20,000 × (1/1.29) × 1.24 = 19,225AUD.2、Which of the following statements about a central bank's actions would mostlikely cause an immediate increase of the banking system's excess reserves?【单选题】A.Decreasing the policy rate.B.Selling securities in the open market.C.Decreasing the required reserve ratio.正确答案:C答案解析:降低法定存款准备金率会导致商业银行吸收存款后有更多的资金可以用于放贷，从而增加了银行系统的可贷资金余额，这种影响也最为直接。

CFA考试一级章节练习题精选0329-34(附详解)

CFA考试一级章节练习题精选0329-34（附详解）1、An observation that stocks with above average price-to-earnings ratios have consistently underperformed those with below average price-to-earnings ratios least likely contradicts which form of the market efficiency?【单选题】A.Weak formB.Strong formC.Semi-strong form正确答案:B答案解析:“Market Efficiency,” W. Sean Cleary, Howard J. Atkinson, and Pamela Peterson Drake2012 Modular Level I, Vol. 5, pp. 140–144Study Session 13-49-d, fContrast the weak-form, semi-strong-form, and strong-form market efficiency.Describe identified market pricing anomalies, and explain possible inconsistencies with market efficiency.B is correct. The observation that stocks with high above-average price-to-earnings ratios have consistently underperformed those with below-average price-to-earnings ratios is a cross-sectional anomaly. It is a contradiction to the semi-strong form of market efficiency and weak-form market efficiency because all the information used to categorize stocks by their price-to-earnings ratios is publicly available.2、The behavioral bias in which investors tend to avoid realizing losses but rather seek to realize gains is best described as:【单选题】A.mental accounting.B.the disposition effect.C.the gambler’s fallacy.正确答案:B答案解析:Behavioral biases in which investors tend to avoid realizing losses but, rather, seek to realize gains is the disposition effect.2014 CFA Level I“Market Efficiency,” by W. Sean Cleary, Howard J. Atkinson, and Pamela Peterson DrakeSection 5.33、A stock selling at $50 has a P/E multiple of 20 on the basis of the current year’s earnings. An analyst estimates that next’s earnings per share will be 10% higher and that the stock should be valued on a forward looking basis at the industry average P/E of 18. Based on the analyst’s assessment, it is most likely that the stock is currently:【单选题】A.overvalued.B.fairly valued.C.undervalued.正确答案:A答案解析:“Equity Valuation: Concepts and Basic Tools,” John J. Nagorniak, CFA, and Stephen E. Wilcox, CFA2011 Modular Level I, Vol. 5, pp. 268-270, 288-295Study Session 14-60-a, hEvaluate whether a security, given its current market price and a value estimate, is overvalued, fairly valued, or undervalued by the market.Calculate and interpret the following multiples: price to earnings, price to an estimate of operating cash flow, price to sales, and price to book value.The stock is currently overvalued by $0.50 as its intrinsic value is $49.50 compared to the price of $50: Next year’s EPS = ($50 / 20) x 1.10 = $2.75; Intrinsic value = $2.75 x 18 = $49.50.4、An analyst does research about security market indices.The number of freelyfloating share available is component of which of the following index weightingschemes?【单选题】A.Fundamental weighting.B.Price weighting.C.Market-capitalization weighting.正确答案:C答案解析:市值法中有按照流通股票数量来调整的指数，对此需要知道流通股票的数量来决定权重。

CFA考试一级章节练习题精选0329-33(附详解)

CFA考试一级章节练习题精选0329-33（附详解）1、A trader takes a long position in 40 futures contracts on Day 1. The futures have a daily price limit of $5 and closes with a settlement price of $106. On Day 2, the futures trade at $111 and the bid and offer move to $113 and $115, respectively. The futures price remains at these price levels until the market closes. The marked-to-market amount the trader receives in his account at the end of Day 2 is closest to:【单选题】A.$200.B.$280.C.$320.正确答案:A答案解析:“Futures Markets and Contracts,” Don M. Chance, CFA2013 Modular Level I, Vol. 6, Reading 62, Section 3Study Session 17-62-dDescribe price limits and the process of marking to market, and calculate and inte rpret the margin balance, given the previous day’s balance and the change in the futures price.A is correct. Because the future has a daily price limit of $5, the highest possible settlement price on Day 2 is $111. Therefore, the marked to market value would be ($111-$106) x 40 = $200.2、With respect to the underlying asset, which of the following derivatives providesthe least information about price volatility?【单选题】A.Call.B.Put.C.FRA.正确答案:C答案解析:价格波动性会改变看涨期权或看跌期权的价值，所以期权价格可以提供更多关于价格波动性的信息，而不是远期利率协议（forward rate agreement，简称FRA）。

CFA考试一级章节练习题精选0329-32(附详解)

CFA考试一级章节练习题精选0329-32（附详解）1、Francesca Ndenda, CFA, and Grace Rutabingwa work in the same department for New AgeManagers, with Rutabingwa reporting to Ndenda. Ndenda learns that Rutabingwa received a Noticeof Enquiry from the Professional Conduct Program at CFA Institute regarding a potential cheatingviolation when she sat for the CFA exam in June. As Rutabingwa's supervisor, Ndenda is afraid thatRutabingwa's behavior will be seen as a violation of the Code and Standards. Does Ndenda mostlikely have cause for concern?【单选题】A.No, not until Rutabingwa is found guilty of cheatingB.YesC.No, because her responsibilities do not apply正确答案:C答案解析:A supervisor's responsibilities relate to detecting and preventing violations by anyone subject to theirsupervision or authority regarding activities they supervise. Ndenda had no way of detecting and/orpreventing Rutabingwa from cheating during the CFA exam, if in fact that is what she did, because itwas an event she did not attend.CFA Level I"Guidance for Standards I-VII," CFA InstituteStandard IV(C)2、Dilshan Kumar, CFA, is a world-renowned mining analyst based in London. Recently, he received an invitation from Cerberus Mining, a London Stock Exchange listed company with headquarters in Johannesburg, South Africa. Cerberus asked Kumar to join a group of prominent analysts from around theworld on a tour of its mines in South Africa, some of which are in remote locations, not easily accessible. The invitation also includes an arranged wildlife safari to Krueger National Park for the analysts. Kumar accepts the invitation, planning to visit other mining companies he covers in Namibia and Botswana after the safari. To prevent violating any CFA Institute Standards of Professional Conduct, it is most appropriate for Kumar to only accept which type of paid travel arrangements from Cerberus?【单选题】A.Ground transportation to Krueger National ParkB.Economy class round trip ticket from London to JohannesburgC.Flights on a private airplane to the remote mining sites in South Africa正确答案:C答案解析:“Guidance for Standards I–VII,” CFA Institute2013 Modular Level I, Vol. 1, Reading 2, Standard I (B) Independence and ObjectivityStudy Session 1–2–cRecommend practices and procedures designed to prevent violations of the Code of Ethics and Standards of Professional Conduct.C is correct because Standard I (B) Independence and Objectivity requires members and candidates to use reasonable care and judgment to maintain their independence and objectivity in their professional activities. Best practice dictates that Kumar only accept transportation to the remote mining sites in that it is unlikely he would be able to source commercial flights to the locations and ground transport may not be viable. Because Kumar would normally visit mining sites around the world as part of his job and because he is combining this trip with trip to other mine sites in different countries, it would be inappropriate for Cerberus to pay for the analyst’s travel expenses from London. Although Kumar could go on safari with the group of analysts, he should pay his own way so as to restrict any influence such a gift could possibly have when making his investment recommendations on Cerberus.3、Miranda Grafton, CFA, purchased a large block of stock at varying prices during the trading session. The stock realized a significant gain in value before theclose of the trading day, so Grafton reviewed her purchase prices to determine what prices should be assigned to each specific account. According to the Standards of Practice Handbook, Grafton's least appropriate action is to allocate the execution prices:【单选题】A.across the participating client accounts pro rata on the basis of account size.B.across the participating client accounts at the same execution price.C.on a first-in, first-out basis with consideration of bundling orders for efficiency.正确答案:A答案解析:According to Standard III (B) best practices include allocating pro rata on the basis of order size, not account size. All clients participating in the block trade should receive the same execution price and be charged the same commission. 2014 CFA Level I "Guidance for Standards I-VII," CFA Institute Standard III(B)4、Preeta Singh, a CFA Candidate, is an asset manager employed by a fund management company managing very large segregated pension funds. In her spare time outside of working hours, Singh likes to provide management-consulting services to small companies to help grow their businesses, focusing on strategic planning. Singh is paid for the consulting services and has also provided her employer information about these outside activities. Does Singh most likely violate the CFA Code of Ethics with regard to Duties to Employers?【单选题】A.No.B.Yes, with regard to loyalty.C.Yes, with regard to additional compensation arrangements.正确答案:A答案解析:“Guidance for Standards I-VII,” CFA Institute2011 Modular Level I, Vol. 1, pp. 90-91, 99Study Session 1–2–bDistinguish between conduct that conforms to the Code and Standards and conduct that violates the Code and Standards.A is correct because Singh does not violate any Standard relating to Duties to Employers. She conducts unrelated non-competitive services to clients outside of business hours and thus does not deprive her employer of the advantage of her skills and abilities, nor is there any indication she divulges confidential information or otherwise causes harm to her employer. She has informed her employers about her outside activities.5、Amanda Covington, CFA, works for McJan Investment Management. McJan employees must receive prior clearance of their personal investments in accordance with McJan’s compliance procedures. To obtain prior clearance, McJan employees must provide a written request identifying the security, the quantity of the security to be purchased, and the name of the broker through which the transaction will be made. Precleared transactions are approved only for that trading day. As indicated below, Covington received prior clearance.Two days after she received prior clearance, the price of Stock B decreased, so Covington decided to purchase 250 shares of Stock B only. In her decision to purchase 250 shares of Stock B only, did Covington violate any CFA Institute Standards of Professional Conduct?【单选题】A.Yes, relating to diligence and reasonable basisB.NoC.Yes, relating to her employer's complicance procedures正确答案:C答案解析:Prior-clearance processes guard against potential and actual conflicts of interest; members are required to abide by their employe's compliance procedures. (See Standard VI(B)). 2014 CFA Level I "Guidance for Standards I-VII," CFA Institute Standard V(A), Standard VI(B)。

CFA考试一级章节练习题精选0329-29(附详解)

CFA考试一级章节练习题精选0329-28（附详解）1、The management fee of a private equity fund that has not yet invested all of its committed capital is most likely based on:【单选题】A.remaining capital.mitted capital.C.invested capital.正确答案:B答案解析:The management fee of private equity funds is based on committed capital until the committed capital is fully drawn down and invested. This approach is in contrast to hedge funds, for which the management fee is based on invested capital.2014 CFA Level I"Introduction to Alternative Investments," by Terri Duhon, George Spentzos, and Scott D. StewartSection 4.12、Hedge funds that contain infrequently traded assets would most likely exhibit a downward bias with respect to:【单选题】A.measured risk but not correlations with conventional equity investments.B.correlations with conventional equity investments but not measured risk.C.both measured risk and correlations with conventional equity investments.正确答案:C答案解析:”Alternative Investments,” Bruno Solnik and Dennis McLeavey2010 Modular Level I, Volume 6, pp. 228-229Study Session 18-73-lDiscuss the performance of hedge funds, the biases present in hedge fund performance measurement, and explain the effect of survivorship bias on the reported return and risk measures for a hedge fund data base.The presence of infrequently traded assets leads to smoothed pricing that induces a significant downward bias to the measured risk of the assets as well as reducing the correlations of returns with conventional equity and fixed income returns.3、An alternative investments fund that employs leverage and takes long and short positions in securities is most likely a:【单选题】A.hedge fund.B.venture capital fund.C.leveraged buyout fund.正确答案:A答案解析:“Introduction to Alternative Investments,” Terri Duhon, George Spentzos, CFA, and Scott D. Stewart, CFA2013 Modular Level I, Vol. 6, Reading 66, Sections 2.1Study Session 18-66-bDescribe categories of alternative investments.A is correct. Hedge funds invest in securities and may take long and short positions. They may also employ leverage.4、An index provider has created a new investable index that tracks the hedge fund industry. Any fund that follows a long/short equity strategy can enter the index. The index provider places new constituents in the index at the end of each year and incorporates the new funds’ track record in the database. Which ofthe following is least likely a bias that might distort the historical performance of the index?【单选题】A.Backfilling.B.Self-selection.C.Tracking error.正确答案:C答案解析:“Alternative Investments,” Bruno Solnik and Dennis McLeavey2011 Modular Level I, Vol. 6, pp. 227-229Study Session 18-74-lDiscuss the performance of hedge funds, the biases present in hedge fund performance measurement, and explain the effect of survivorship bias on the reported return and risk measures for a hedge fund database.C is correct because this is not a bias that is associated with distorting the performance of a hedge fund index. Tracking error is a risk more commonly associated with mutual funds and ETFs when their investments deviate significantly from those in the index it is benchmarked against. Many hedge funds pursue absolute returns and may deviate materially from indices.5、The real estate index most likely to suffer from sample selection bias is a(n):【单选题】A.REIT index.B.appraisal index.C.repeat sales index.正确答案:C答案解析:Only properties that sell in each period and are included in the index and vary over time which may not be representative of the whole market. 2014 CFA Level I“Introduction to Alternative Investments,” by Terri Duhon, George Spentzos, and Scott D. StewartSection 5.3。

CFA考试一级章节练习题精选0329-24(附详解)

CFA考试一级章节练习题精选0329-24（附详解）1、An analyst does research about inventory and gathers the following informationabout a company's inventory:·Cost of the inventory is $ 6 350 000·Estimated selling price is $ 6 430 000·Estimated cost of completion is $ 110 000·Estimated costs to selling is $ 43 000Based on this information, the inventory is most likely reported on the balancesheet at:【单选题】A.$ 6 277 000B.$ 6 350 000C.$ 6 387 000正确答案:A答案解析:net realizable value = estimated selling price - estimated selling cost = $6 430 000 - $ 110 000 -$ 43 000= $ 6 277 000 < $ 6 350 000。

根据lower of cost or NRV (net realizable value)孰低原则，由于net realizable value 小于cost，因此以net realizable value 记账。

2、Which of the following is least likely a condition present in a “fraud triangle”?【单选题】A.Constraining debt covenants.B.Adding independent members to the Board of Directors.C.Management’s belief that a decline in performance is due to temporary economic conditions.正确答案:B答案解析:“Financial Reporting Quality: Red Flags and Accounting Warning Signs,” Thomas R. Robinson, CFA and Paul Munter2010 Modular Level I, Vol. 3, p. 574“The Corporate Governance of Listed Companies: A Manual for Investors,”2010 Modular Level I, Vol.4, pp. 171–176Study Session: 10-40-c, 11-48-cDescribe the “fraud triangle”.Describe board independence and explain the importance of independent board members in corporate governance.The “fraud triangle” requires incentives (e.g., debt covenants), opportunities, and management’s ability to rationalize (tem porary economic conditions). Adding independent members to the Board of Directors should improve corporate governance and hence decrease the opportunity for fraud.3、Under IFRS, which of the following is most likely one of the fundamental principles underlying the preparation of financial statements?【单选题】A.ReliabilityB.ConsistencyC.Understandability正确答案:B答案解析:"Financial Reporting Standards,” Thomas R. Robinson, CFA, Jan Hendrik van Greuning, CFA, Karen O’Connor Rubsam, CFA, Elaine Henry, CFA, and Michael A. Broihahn, CFA2011 Modular Level 1, Vol.3, pp.107-108, 112-113Study Session: 7-31-d, eDescribe the International Financial Reporting Standards (IFRS) framework, including the qualitative characteristics of financial statements, the required reporting elements, and the constraints and assumptions in preparing financial statements.Explain the general requirements for financial statements.Based on International Accounting Standard (IAS) general requirements for financial statements, fundamental principles include fair presentation, going concern, accrual basis, consistency and materiality.4、Due to global oversupply in the micro-chip industry a company wrote down its 2009 inventory by €4.0 million from €12.0 million. The following year, due toa change in competitive forces in the industry the market price of these chips rose sharply to 10% above their original 2009 value. If the company prepares its financial statements in accordance with International Financial Reporting Standards (IFRS), its 2010 in ventory (in €-millions) will most likely be reported as:【单选题】A.8.0.B.12.0.C.13.2.正确答案:B答案解析:“Inventories,” Elbie Antonites, CFA and Michael Broihahn, CFA2010 Modular Level 1, Vol. 3, pp. 380-381“International Standards Convergence,” Thomas R. Robins on, CFA, Jan Hendrik van Greuning, CFA, R. Elaine Henry, CFA and Michael A. Broihahn, CFA2010 Modular Level 1, Vol. 3, pp. 653-654Study Session 9-36-b, 10-43-aDiscuss how inventories are reported in the financial statements and how the lower of cost or net realizable value is used and applied.Identify and explain the major international accounting standards for each asset and liability category on the balance sheet and the key differences from U.S. generally accepted accounting principles (GAAP).Although IFRS does require write-downs, it also allows revaluations, but not to exceed the original value, i.e., 12. The exception to this, where gains are allowed, is in producers of agricultural, forest and resource products.5、An analyst does research about balance sheets.Which of the following is NOT acomponent of the owners' equity section of the balance sheet?【单选题】A.Goodwill.B.Issued capital.C.Noncontrolling interests.正确答案:A答案解析:商誉（Goodwill）属于企业的一项资产类项目。

CFA考试一级章节练习题精选0329-50(附详解)

CFA考试一级章节练习题精选0329-50（附详解）1、A hedge fund that implements trades based on a top-down analysis of expected movements ineconomic variables most likely uses a(n):【单选题】A.macro strategy.B.event-driven strategy.C.relative value strategy.正确答案:A答案解析:Macro strategies emphasize a top-down approach, and trades are made based on expectedmovements of economic variables.CFA Level I"Introduction to Alternative Investments," Terri Duhon, George Spentzos, and Scott D. StewartSection 3.12、An analyst doesresearch about closely-held companies.With respect to valuationof closely-held companies, the most appropriate base for estimating a discountfor lack of liquidity is the:【单选题】A.market price of a similar but actively publicly traded company.B.Estimate of the value of equity with all control rights.C.mean value of the company's transaction prices recently.正确答案:A答案解析:私人持股公司是非上市公司，对其估值应考虑到因流动性缺失而引发的价值下调，其基准可以选择类似的但积极公开交易的公司股票的市场价格，并考虑其缺少流动性而适当向下调整。

CFA考试一级章节练习题精选0329-39(附详解)

CFA考试一级章节练习题精选0329-39（附详解）1、An analyst does research about the limitations of cash flow yield.Which of thefollowing statements is least accurate to be a shortcoming in application of thecash flow yield measure?【单选题】A.The projected cash flows are assumed to be reinvested at the cash flowyield.B.The mortgage-backed or asset-backed security is assumed to be held untilthe final payoff of all the loans, based on some prepayment assumption.C.Because of principle prepayments, in order to project cash flow it is necessaryto make an assumption about the rate at which principle prepaymentswill occur.正确答案:C答案解析:选项A和B都是现金流收益率的局限性。

其中一个缺陷是现金流收益率假设以该收益率获得再投资收入，而实际情况可能不同。

另外一个缺陷是假设根据提前偿付的假设持有到期，但有可能会提前偿还本金。

选项C则不是现金流收益率的局限性。

2、An analyst does research about exchange trade funds (ETFs).Which of thefollowing statements is least accurate to describe exchange trade funds' characteristics?【单选题】A.Portfolio holdings of ETFs are transparent.B.ETF's structure prevents a significant premium or discount to NAV.C.Dividends are reinvested annually for open-end ETFs.正确答案:C答案解析:ETF不收取申购和赎回费用，可以卖空或者融资交易，同时组合的持仓是透明的。

CFA考试一级章节练习题精选0329-3(附详解)

CFA考试一级章节练习题精选0329-3（附详解）1、An analyst does research about deferred tax liability.If a previously recordeddeferred tax liability is not expected to reverse, which of the following is themost appropriate adjustment?【单选题】A.Decreasing financial leverage ratio.B.Increasing current ratio.C.Decreasing asset turnover ratio.正确答案:A答案解析:如果递延所得税负债在将来不会回转，分析师应该将递延所得税负债调整到权益中去，这样资产不变，权益增加，负债减少，会使得财务杠杆（即资产/权益）降低，但不会改变流动比率（current ratio）和总资产周转率（asset turnover ratio）。

2、Which of the following least accurately expresses the basic accounting equation?【单选题】A.Revenue - Expense = Net income.B.Assets = Liabilities + Owner's equity.C.Liabilities + Contributed capital + Beginning retained earnings = Assets.正确答案:C答案解析:选项A和B分别代表了利润表和资产负债表的基本等式。

选项C中应该是Liabilities +Contributed capital + Ending retained earnings = Assets，所以选项C是错的。

CFA考试一级章节练习题精选0329-42(附详解)

CFA 考试一级章节练习题精选 0329-42（附详解）
1、The following selected information is from a company’s most recent financial statements:
The 2009 cash conversion cycle, in days, is closest to:【单选题】 A.23. B.26.
A.the debt-equity ratio but not the interest coverage ratio.
2
2、An analyst does research about financial statement framework.Ratios and graphsare most likely the output of which of the following phases of the financial statementanalysis framework?【单选题】 A.Process data. B.Analyze/interpret the processed data. C.Collect input data. 正确答案:A 答案解析:财务报表分析的步骤如下：（1）陈述分析目标；（2）收集数据（例如财务报表、行业报告等）；（3）处理数据（形成通用报表、比率和图表等）；（4）分析并阐述所处理的数据；（5）制定决策，沟通结果并形成推荐意见；
3
（6）继续跟踪。 3、Under IFRS, which of the following is most likely one of the fundamental principles underlying the preparation of financial statements?【单选题】 A.Reliability B.Consistency C.Understandability 正确答案:B 答案解析:"Financial Reporting Standards,” Thomas R. Robinson, CFA, Jan Hendrik van Greuning, CFA, Karen O’Connor Rubsam, CFA, Elaine Henry, CFA, and Michael A. Broihahn, CFA 2011 Modular Level 1, Vol.3, pp.107-108, 112-113 Study Session: 7-31-d, e Describe the International Financial Reporting Standards (IFRS) framework, including the qualitative characteristics of financial statements, the required reporting elements, and the constraints and assumptions in preparing financial statements. Explain the general requirements for financial statements. Based on International Accounting Standard (IAS) general requirements for financial statements, fundamental principles include fair presentation, going concern, accrual basis, consistency and materiality. 4、An analyst makes the appropriate adjustments to the financial statements of retail companies that are lessees using a substantial number of operating leases. Compared to ratios computed from the unadjusted statements, the ones computed from the adjusted statements would most likely be hi案解析:“Financial Analysis Techniques”, Thomas R. Robinson, CFA, Jan Hendrik van Greuning, CFA, R. Elaine Henry, CFA, and Michael A. Broihahn, CFA 2010 Modular Level I, Vol. 3, pp. 329-330 “Working Capital Management,” Edgar A. Norton, Jr., CFA, Kenneth L. Parkinson, and Pamela P. Peterson, CFA 2010 Modular Level I, Vol. 4 pp.89-93 Study Session 8-35-d, 11-46-c Calculate, classify and interpret activity, liquidity, solvency, profitability, and valuation ratios. Evaluate overall working capital effectiveness of a company, using the operating and cash conversion cycles, and compare its effectiveness with other peer companies.

CFA考试一级章节练习题精选0329-36(附详解)

CFA考试一级章节练习题精选0329-36（附详解）1、An analyst does research about portfolio performance evaluation.Which of thefollowing performance measures is most appropriate for an investor who is notfully diversified?【单选题】A.M-squared.B.Treynor ratio.C.Jensen's alpha.正确答案:A答案解析:M-squared使用标准差（总风险）来衡量风险，所以不需要充分地分散化非系统性风险这一假设。

Treynor ratio和Jensen's alpha都是基于系统性风险，需要投资者充分地分散化非系统性风险这一假设。

2、An analyst does research about active and passive management.If the marketfor the asset class is insufficient, which of the following statements is most accurate?A skilled investor should choose:【单选题】A.Index investing.B.passive management.C.active management.正确答案:C答案解析:如果市场是有效的，流动性是比较好的，投资者则应该采取被动投资策略，如投资于指数；而市场如果是不充分的，有经验的投资者则应该采用积极的投资管理策略。

3、Information about three stocks is provided below:If the expected market return is 9.5% and the average risk-free rate is 1.2%, according to the capital asset pricing model (CAPM) and the security market line (SML), which of the three stocks is most likely overvalued?【单选题】A.Heisen Inc.B.Booraem Inc.C.Gutmann Inc.正确答案:B答案解析:“Portfolio Risk and Return Part II,” Vijay Singal2012 Modular Level I, Vol. 4, p. 434Study Session 12-45-hDescribe and demonstrate applications of the CAPM and the SML.B is correct. Booraem Inc. is overvalued because it lies below the SML. The expected return, 12.85%, is less than the required return. According to the CAPM, the required return for Booraem Inc. is 0.1365 or 13.65%:0.1365 = 0.012 + 1.5(0.095 – 0.012).4、An analyst does research about correlation.The correlation of return betweentwo securities with equal standard deviation is 0.75.If the covarianceof returns in 5.5, the standard deviation of return of one security isclosest to:【单选题】A.2.7%B.5.7%C.7.3%正确答案:A答案解析:correlation = covariance/ standard，得出：0.75 = 5.5/ standard，故standard deviation = 2.7%.5、An analyst does research about capital asset pricing model.Which of the followingstatements is most accurate? The security market line (SML) :【单选题】A.is a graphical representation of the capital asset pricing model that plots expectedreturn versus beta for any security.B.includes all possible combinations of the risk-free asset and any risky portfolio.C.includes all possible combinations of the risk-free asset and the market portfolio.正确答案:A答案解析:证券市场线（SML）是资本资产定价模型（CAPM）的图形表示，系统性风险用beta表示，该模型通过计算证券的必要收益率，进而进行证券选择。

CFA考试一级章节练习题精选0329-46(附详解)

CFA考试一级章节练习题精选0329-46（附详解）1、Which of the following statements best describes a trial balance? A trial balance is a document or computer file that:【单选题】A.shows all business transactions by account.B.lists account balances at a particular point in time.C.contains business transactions recorded in the order in which they occur.正确答案:B答案解析:"Financial Reporting Mechanics,” Thomas R. Robinson, CFA, Jan Hendrik van Greuning, CFA, Karen O’Connor Rubsam, CFA, Elaine Henry, CFA, and Michael A. Broihahn, CFA2011 Modular Level I, Vol.3, p. 67Study Session: 7-30-fDescribe the flow of information in an accounting system.A trial balance is a document that lists account balances at a particular point in time.2、Based on the above information about a company’s trade receivables, the bad debt expense (in millions) for 2012 is closest to:【单选题】A.￡36.B.￡84.C.￡120.正确答案:C答案解析:“Understanding Balance Sheets," Elaine Henry, CFA, and Thomas R. Robinson, CFA2012 Modular Level 1, Vol.3, Reading 26, Section 3.1.3Study Session: 8-26-eDescribe different types of assets and liabilities and the measurement bases of each.C is correct. The allowance for doubtful accounts increases by the bad debt expense recognized for the year and decreases by the amounts written off during the year.3、Which of the following is most likely a depreciation method in which the allocationof cost corresponds to the actual use of an asset in a particular period?【单选题】A.Accelerated method.B.Weighted average method.C.Units-of-production method.正确答案:C答案解析:折旧（depreciation）费用的3种计算方法如下：● 直线折旧法[ straight-line（sl）method]：[初始成本（original cost）- 残值（residualvalue)]/应折旧年限（depreciable life）。

CFA考试一级章节练习题精选0329-30(附详解)

CFA考试一级章节练习题精选0329-30（附详解）1、Which of the following is least likely an assumption of the capital asset pricing model (CAPM)?【单选题】A.Security prices are not affected by investor trades.B.An investor can invest as much as he or she desires in any asset.C.Investors are different only with respect to their unique holding periods.正确答案:C答案解析:One of the assumptions of the CAPM is that investors plan for the same single holding period.CFA Level I"Portfolio Risk and Return: Part II," Vijay SingalSection 4.12、A client exhibits an above-average willingness to take risk but a below-averageability to take risk.The investment adviser is most likely to assess the client'soverall risk tolerance as:【单选题】A.above average.B.average.C.below average.正确答案:C答案解析:虽然客户有较强意愿去接受风险，但其风险承受能力较低，所以咨询师只能将此客户列为较低风险承受者。

3、A stock has a correlation of 0.45 with the market and a standard deviation of returns of 12.35%. If the market has a standard deviation of returns of 8.25%, then the beta of the stock is closest to:【单选题】A.0.30.B.0.67.C.1.50.正确答案:B答案解析:“Portfolio Risk and Return Part II,” Vijay Singal2012 Modular Level I, Vol. 4, pp. 415–417Study Session 12-45-eCalculate and interpret beta.B is correct.4、The following table shows data for the stock of JKU and a market index.Based on the capital asset pricing model (CAPM), JKU is most likely:【单选题】A.overvalued.B.fairly valued.C.undervalued.正确答案:C答案解析:=0.75 × 0.2/0.15=1.0 and=RFR+=0.05+1 ×(0.12-0.05)=0.12. The required rate of return of JKU is 12%, and the expected return of JKU is15%. Therefore, JKU is undervalued relative to the security market line (SML); the risk-returnrelationship lies above the SML.CFA Level I"Portfolio Risk and Return: Part II," Vijay SingalSection 45、A correlation matrix of the returns for securities A, B, and C is reported below:Assuming that the expected return and the standard deviation of each security are the same, a portfolio consisting of an equal allocation of which two securities will be most effective for portfolio diversification? Securities:【单选题】A.A andB.B.A andC.C.B and C.正确答案:C答案解析:“Portfolio Risk and Return Part I,” Vijay Singal2012 Modular Level I, Vol. 4, pp. 364–365Study Session 12-44-fDescribe the effect on a portfolio’s risk of investing in assets that are less than perfectly correlated.C is correct. The negative correlation of –0.5 between investment instruments B and C is lowest and therefore is most effective for portfolio diversification.。