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CFA Level 1 Mock Exam I Questions and Answers, Exams of Nursing

A series of questions and answers from a cfa level 1 mock exam, covering topics such as ethics, financial reporting, economics, and quantitative methods. It includes questions about gips compliance, due diligence for third-party research, and the calculation of compound ror.

Typology: Exams

2023/2024

Available from 04/09/2024

Ewanga
Ewanga 🇺🇸

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CFA Level 1 CFAI Mock (AM) Exam I Q &
A.
Can you initiate coverage on a company that is a potential client? - Correct Answer Yes
- as long as the recommendation is not unjustifiably favorable
Tender Offers - Correct Answer Mat., non-pub info -> can't use!
To be GIPS compliant, a firm must adopt: - Correct Answer the broadest definition of
the firm
*presented annually, to all clients
Do you have to reveal referral fees even if $ isn't actually exchanged? - Correct Answer
yes (duh)
Remember: if there is total disregard for ethics from BOTH your boss and compliance,
you are recommened to - Correct Answer quit the job
For 3rd party research.. - Correct Answer you must do due diligence
the width of a conf. interval for a pop. mean is smaller if the sample size is: - Correct
Answer larger and the degree of conf. is lower
if the given p-value is greater than the level of significance - Correct Answer the null
hyp. cannot be rejected
to get the compound ROR, use the - Correct Answer geometric mean
exhaustive events - Correct Answer when all possible outcomes are covered
Bayes Formula = - Correct Answer P(event / information) = P (information / Event) /
P(information)) x P(Event)
If the prices of substitute resources decreas, the demand for a given resource will most
likely - Correct Answer decrease
*a dec. in the price of a sub. would induce consumers to use the sub. good, reducing
demand for the good in question
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CFA Level 1 CFAI Mock (AM) Exam I Q &

A.

Can you initiate coverage on a company that is a potential client? - Correct Answer Yes

  • as long as the recommendation is not unjustifiably favorable Tender Offers - Correct Answer Mat., non-pub info -> can't use! To be GIPS compliant, a firm must adopt: - Correct Answer the broadest definition of the firm *presented annually, to all clients Do you have to reveal referral fees even if $ isn't actually exchanged? - Correct Answer yes (duh) Remember: if there is total disregard for ethics from BOTH your boss and compliance, you are recommened to - Correct Answer quit the job For 3rd party research.. - Correct Answer you must do due diligence the width of a conf. interval for a pop. mean is smaller if the sample size is: - Correct Answer larger and the degree of conf. is lower if the given p-value is greater than the level of significance - Correct Answer the null hyp. cannot be rejected to get the compound ROR, use the - Correct Answer geometric mean exhaustive events - Correct Answer when all possible outcomes are covered Bayes Formula = - Correct Answer P(event / information) = P (information / Event) / P(information)) x P(Event) If the prices of substitute resources decreas, the demand for a given resource will most likely - Correct Answer decrease *a dec. in the price of a sub. would induce consumers to use the sub. good, reducing demand for the good in question

GDP measures the - Correct Answer agg. income earned by all households, all companies, and the govt *it can also be defined as the market value of all final goods and services produced in the economy in a given period of time unemployment rate = - Correct Answer unemployed/labor force short run initial effect of demand pull inflation is an increase in: - Correct Answer commodity price (demand pull increases AD - this leads to an increase in commod. prices) a liquidity trap is associated with - Correct Answer deflation With stable inflation, a tight fiscal policy accompanied by easy monetary policy will - Correct Answer increase the private sector share of GDP if a company impairment loss reduces carrying value by 10%, the impairment loss is - Correct Answer a non-cash charge and will not affect CFO *D/A will increase and so will fixed Asset t/o specific ID - Correct Answer matching of physical flow of the particular items sold and is most suitable for high-end custom built motorcycles that are not ordinarily considered interchangeable "net revenue" refers to - Correct Answer revenue - volume discounts & estimated returns Dupont (short) - Correct Answer Net income / Rev x Rev / total assets x total assets /equity GAAP (b/s) - Correct Answer current assets must be presented before noncurrent assets *IFRS is opposite financial leverage ratio = - Correct Answer total assets / shareholder equity example of biased reporting - Correct Answer combining the results from two segments b/c it is difficult to interpret the profitability of each segment when are inherent risks in an investment evaluated in the financial statement analysis framework? - Correct Answer develop and communicate conclusions/recommendations

OTC market = - Correct Answer buy and sell orders are initiated from various locations through a communication network (bloomberg) a swap in which the investor receives a variable payment in line with market conditions and makes a fixed payment can be replicated by purchasing a: - Correct Answer floating rate bond financed using a fixed-rate bond forward contract = the price of the underlying minus the price of the - Correct Answer forward, discounted over the remaining term of the contract in a currency swap, the underlying principal amount is exchanged - Correct Answer at the end AND beginning of the swap Euro calls have a pos. relationship with - Correct Answer time to expiration RE sample selection bias - Correct Answer repeat sales index (only prop. sold is included which may not be representative)