CFA Institute CFA Level I Chartered Financial Analyst - CFA-Level-I Exam Practice Test
A futures contract on a stock index can be settled on the expiration day by
Correct Answer: C
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The market price of wheat is $2. The government imposes a legal minimum price (price floor) of $1.50.
What will be the effect on the market?
What will be the effect on the market?
Correct Answer: B
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Which of the following would not be an example that would require a nonparametric test?
Correct Answer: B
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A sample of 1,600 MBA recruiters was used to rank the top MBA schools in the US and abroad. The resulting rankings are:
Correct Answer: B
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Assume Google has a short interest of 75 million shares, while the average daily volume of shares traded is 70 million. Its current price is $450 and its average price over the last 30 days is $400. Google's short interest ratio is:
Correct Answer: A
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A dormitory on campus houses 200 students. 120 are male, 50 are upper division students, and 40 are upper division male students. A student is selected at random. The probability of selecting a lower division student, given the student is a female, is:
Correct Answer: B
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Which of the following is LEAST accurate with the respect to why domestically listed firms choose to be listed abroad?
Correct Answer: A
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Ms. Sweetwater's biology class had a standard deviation of 2.4 on a standardized test, while Ms.
Quincy's biology had a standard deviation of 1.2 on the same test. What can be said about these two classes?
Quincy's biology had a standard deviation of 1.2 on the same test. What can be said about these two classes?
Correct Answer: B
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An automatic machine inserts mixed vegetables into a plastic bag. Past experience revealed that some packages were underweight and some were overweight, but most of them had satisfactory weight.
Weight % of Total Underweight 2.5 Satisfactory 90.0 Overweight 7.5
Three packages are selected from the food processing line. What is the probability of selecting and finding that all three of them are underweight?
Weight % of Total Underweight 2.5 Satisfactory 90.0 Overweight 7.5
Three packages are selected from the food processing line. What is the probability of selecting and finding that all three of them are underweight?
Correct Answer: B
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Assume that six months ago you bought 2,500 shares of a stock at $70 per share using margin. The margin rate was 40%, and the interest rate on the margin loan was 8%. Assume no commissions. What is your gain or loss if the current stock price is $71 per share?
Correct Answer: C
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On 12/31/99, Morgan Corporation's capital structure is as follows:
Common Stock outstanding 200,000
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Nonconvertible, $100 Par, 6% Preferred Stock 37,700 Shares
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8.00 %, $1,000 Convertible bonds $1,500,000
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Stock options to purchase 33,000 shares of common at $30.00 a share.
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Average market price of common stock during 2000 was $39
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The following events occurred in 2000:
On 9/1/00, Morgan sold 283,000 additional shares of common stock.
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Net income for the year was $1,375,000, after taxes.
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The 8.00% convertible bonds are convertible into 80 shares of common stock for each $1,000 bond.
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The tax rate for 2000 is 25%
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What is the diluted EPS for 2000?
Common Stock outstanding 200,000
*
Nonconvertible, $100 Par, 6% Preferred Stock 37,700 Shares
*
8.00 %, $1,000 Convertible bonds $1,500,000
*
Stock options to purchase 33,000 shares of common at $30.00 a share.
*
Average market price of common stock during 2000 was $39
*
The following events occurred in 2000:
On 9/1/00, Morgan sold 283,000 additional shares of common stock.
*
Net income for the year was $1,375,000, after taxes.
*
The 8.00% convertible bonds are convertible into 80 shares of common stock for each $1,000 bond.
*
The tax rate for 2000 is 25%
*
What is the diluted EPS for 2000?
Correct Answer: B
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Armando Delrio, a quantitative analyst with Brown Brothers Brokerage, has been instructed to create a regression analysis comparing the relationship between same store sales figures for a batch of retail stocks and marketing expenses for the same series of stocks. In order to adhere to the traditional seven-step method of hypothesis testing, Armando should begin his analysis by performing which of the following actions? Choose the best answer.
Correct Answer: B
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