[Dec-2021] Verified CFA Exam Dumps with CFA-Level-I Exam Study Guide
Best Quality CFA CFA-Level-I Exam Questions NewPassLeader Realistic Practice Exams [2021]
How to study the CFA CFA-Level-I: CFA Institute CFA Level I Chartered Financial Analyst Exam
There are two main types of tools for preparing for CFA Level 1 qualification exams. First, there are study guides and books that are detailed and suitable for building information from the ground up. Then there are video tutorials and lectures that can somehow ease the pain of training and are comparatively less tiring for some applicants, but they take time and concentration from learning. Smart candidates who want to build a strong base on all exam topics and relevant technology normally combine video lectures with study guides to reap the benefits of both, but, as often ignored by most candidates the CFA Level 1 practice exams, there is one vital training method. As an aspiring or active investor, you need the expertise and experience to succeed in a highly competitive industry. The CFA programme is built to provide you with the kind of experience and real world know-how to carry out your job analysis. If you are an intern, a worker, a transitional occupation or an investment professional, the CFA programme gives you a path to advance and accomplish your professional objectives. The CFA Program is a three-part review that examines the basics of investing tools, asset assessment, portfolio management and wealth planning. The CFA Program is mostly completed for people of administrative, accounting, economic or commercial backgrounds. Holders of the CFA charter shall be entitled to use the CFA classification until completion, application and approval of the curriculum by the CFA Institute. CFA charter members are eligible to work in wealth management, risk management, wealth control, and more in senior and executive roles. CFA Level 1 practice test is the best start towards understanding the concepts of examination.
Topics of CFA CFA-Level-I: CFA Institute CFA Level I Chartered Financial Analyst Exam
Before preparation begins, candidates need to know the examination topics. And it’s going to help them to reach the center. CFA Level 1 dumps will include the following topics:
- Economics
- Ethical and Professional Standards The focus of this topic is ethics, related challenges to ethical behavior, and the role ethics and professionalism play in the investment industry. We provide a framework to support ethical decision making and examine the CFA Institute Code of Ethics and Standards of Professional Conduct and Global Investment Performance Standards (GIPS).
- Quantitative Methods In this section, we explore quantitative concepts and techniques used in financial analysis and investment decision making. We present descriptive statistics for conveying important data attributes, such as central tendency, location, and dispersion, and introduce characteristics of return distributions. The section also considers probability theory and its application in quantifying risk for investment decision making.
In this section, we introduce analysis of fundamental concepts of supply and demand for individual consumers and firms. We also cover the various market structures that firms operate in as well as macroeconomic concepts and principles, including aggregate output and income measurement, aggregate demand and supply analysis, and analysis of economic growth factors. The section concludes with coverage of the business cycle and its effect on economic activity.
Derivatives In this section, we build the conceptual framework for understanding the basic derivatives and derivative markets. We then introduce essential features and valuation concepts for forward commitments such as forwards, futures, swaps, and contingent claims. Finally, we examine arbitrage, a critical concept that links derivative pricing to the price of the underlying asset.
Alternative Investments This topic explores alternative investments, including hedge funds, private equity, real estate, commodities, and infrastructure. We cover the use of alternative investments for diversification and higher returns. In this curriculum, we define alternative investments and the characteristics they have in common.
Financial Reporting and Analysis Here we provide a thorough explanation of financial reporting procedures and the standards that govern financial reporting disclosures, with an emphasis on basic financial statements and how alternative accounting methods affect those statements and the analysis of them. We examine primary financial statements and provide a general framework for conducting financial statement analysis.
CFA CFA-Level-I: CFA Institute CFA Level I Chartered Financial Analyst Certification Path
In the CFA Level 1 test, the candidates can gain results with CFA Level 1 exam dumps pdf. Candidates will find in the Qualification Issues Forum what they are searching for. If the applicant fully practises these queries, he will comfortably deal with his exam. When they memorize them, they get a sense of the real test. Applicants should recognise all measures a candidate should provide in order to pass the CFA Level 1 Exam Qualification. Candidates are only a few steps away from the performance. So if the candidates schedule our CFA level 1 dumps, they will realise their dream. Be one with your calculator. You must understand how to use the calculator features that are used to answer the learning outcomes (LOS).Examination issues relating to financial reporting and analysis (FRA) are focused, as otherwise defined, on International Financial Reporting Standards (IFRS). When an issue is focused on the U.S. GAAP, the question is specified. Answer all queries. Answer all the questions. There is no punishment for wrong responses. Comfortably dressed up. There is no dress code, but laid-back attire is encouraged.Calm shoes are a bonus. CFA Level 1 practice exams is the best start towards understanding the concepts of examination.
NEW QUESTION 1052
Fran Dew is an analyst at a large brokerage house. Her husband, John, is an equity salesman at the same brokerage house. John is holding a large position of stock in a company called QRE. QRE have performed very badly of late and John is battling to sell the stock. John calls Fran and asks her as a special favor to him if she can please call some of her institutional clients and sell them large quantities of
QRE. Fran does this and sells off a large quantity of stock to her large clients. In terms of CFA Institute's
Standards of Professional Conduct per Standard I). B.
(Independence and Objectivity), has Fran violated this Standard?
- A. Yes, it is an unethical practice since an analyst must always be able to justify the recommendations that they make.
- B. No, Fran owed it to her husband due to their relationship.
- C. Yes, due to her relationship with John she must never sell any stock that he is holding.
Answer: A
Explanation:
No matter what the benefit to the firm nor her relationship with her Husband, Fran may never sacrifice her objectivity and independence. Fran may deal with John at the firm but not in a manner that may compromise her independence and objectivity. Fran may only make recommendations to her clients on stocks that she is able to justify the purchase thereof.
NEW QUESTION 1053
Assume the correct current ratio is bigger than 1. If purchase (on account) is overstated by $3,000 and the ending inventory is overstated by $3,000, the current ratio is ______ and the working capital is
_ _____.
- A. understated, not affected.
- B. not affected, overstated.
- C. overstated, not affected.
Answer: A
Explanation:
EI = BI + purchase - COGS. If both purchase on account and ending inventory are overstated by the same amount, the current ratio will be understated (current ratio = current assets / current liabilities, in which both numerator and the denominator are overstated, but the ratio will belowered since it is bigger than 1). However, the working capital which equals current assets - current liability should be unaffected.
NEW QUESTION 1054
Investors earn an equilibrium rate of return corresponding to the
- A. the non-diversifiable risk of a security.
- B. the total risk of a security.
- C. the variance of a security's return.
Answer: A
Explanation:
The market prices securities according to their non-diversifiable or market risk. Market risk is based on the covariance between the security and the market portfolio in the presence of the risk-free security.
NEW QUESTION 1055
A systematic sampling method should not be used when:
- A. the data are systematically biased.
- B. the data are already arranged in the form of a predetermined pattern.
- C. the data are divided into open-ended classes.
Answer: B
Explanation:
If the data are already arranged in the form of a predetermined pattern, using systematic sampling can introduce a systematic pattern in the sample itself, which would lead to erroneous inferences about the entire population.
NEW QUESTION 1056
The purchase of treasury stock
- A. increases total stockholders' equity and increases the number of outstanding shares.
- B. None of these.
- C. affects a company's legal capital.
Answer: B
Explanation:
The purchase of treasury shares decreases total stockholders' equity. It also decreases the number of outstanding shares but does not affect a company's legal capital.
NEW QUESTION 1057
Which of the following statements is (are) true with the respect to the effects that business cycles will have on various types of industries?
I). Cyclical industries are always in line with the general rate of economic growth.
II). Defensive industries do well primarily when the probability of armed conflict increases.
III). The state of the economic cycle will have little impact on growth industries.
IV). Defensive industries primarily in the mature phase of their life cycle.
- A. I and IV.
- B. III and IV.
- C. II and III.
Answer: B
Explanation:
I is incorrect because sometimes a cyclical industry may lead or follow the general economic cycle; therefore, the industry may not be in line with the economy.
II is incorrect because "defensive" industries do not imply military contractors. For instance, utility industries are classified as defensive industries because their prospects are relatively independent of general economic cycles.
NEW QUESTION 1058
Net credit sales total $355,000. The beginning accounts receivable balance was $15,000 and the ending accounts receivable balance is currently $21,000. Assuming a 365-day year, what is the average number of days required to collect accounts receivable?
A 17 55
B. 18.51
C. 19.72
Answer:
Explanation:
B
Explanation: The average number of days required to collect accounts receivable is determined by dividing 365 (days) by the turnover rate. The turnover rate is $355,000/$18,000 = 19.72. When 365 days is divided by 19.72, the average number of days for collections (365 days/19.72) equals 18.51 days.
NEW QUESTION 1059
Beta and standard deviation are common measures of investment risk. How are these risk measures best characterized?
- A. beta and standard deviation are both measures of total risk
- B. beta measures total risk and standard deviation measures covariance risk
- C. beta measures covariance risk and standard deviation measures total risk
Answer: C
NEW QUESTION 1060
Which of the following factors is not an explanation of the positive relationship between market price and quantity supplied?
I). The law of diminishing returns makes it more costly for firms to expand output quickly.
II). As all firms in an industry hire more factors of production, the prices paid for them often increase.
III). For most firms, unit costs decrease as output increases in the long run.
IV). As price increases, some less efficient firms will enter the market.
- A. I and II.
- B. III only.
- C. III and IV.
Answer: B
Explanation:
If unit costs decreased as output increased, this would imply that firms would allow prices to fall as they expanded output. Under an increasing cost industry, the firm requires a higher price in order to expand output because its costs increase. This explains the positive relationship between price and level of output.
NEW QUESTION 1061
On January 1, 2000, the Liz-Beth Company issued zero-coupon bonds for $68,301, which resulted in an effective interest rate of 10 percent. The bonds' face value was $100,000, and the maturity date was
January 2004. What would be the amount of interest that is paid in 2000?
- A. $--0-
- B. $6,830
- C. $10,000
Answer: A
Explanation:
Zero-coupon bonds have no stated interest rate and do not pay interest.
NEW QUESTION 1062
A firm can pursue a differentiation strategy on the basis of
I). its product.
II). method of delivery.
III). economies of scale.
IV). production process.
V. marketing approach.
VI). can charge a higher price while attempting to retain cost parity with its competitors.
- A. I, II, III, V, VI.
- B. I, II, V, VI.
- C. All of them.
Answer: B
NEW QUESTION 1063
Below describes the total return rates (in percentages) for the past three years for 15 top-performing utilities mutual funds.
Biggest return: 15.1
Smallest return 3.1
Median return: 9.5
What interval length should be used if it is desired to construct a frequency distribution with four equally spaced intervals?
- A. 0
- B. 3.75
- C. 1
Answer: C
Explanation:
4
Determine how many classes we need: Since 2 > 15, we need 4 classes.
*
Interval: (15.1 - 3.1)/4 = 3.
*
NEW QUESTION 1064
The main reason for dollarization is:
- A. to follow the foreign country's monetary policy.
- B. to improve the credit-worthiness of the central bank.
- C. greater stability in the value of the foreign currency over domestic currency.
Answer: C
Explanation:
The downside is that the country gives up its right to influence its own monetary policy by adjusting the money supply.
NEW QUESTION 1065
Which one is an inferior good?
- A. None of them.
- B. A Veblen good.
- C. A Giffen good.
Answer: C
Explanation:
Veblen goods are not inferior goods. The two are fundamentally different.
NEW QUESTION 1066
The following securities are generally backed by the full faith and credit of the United States government:
- A. securities issued by the Government National Mortgage Association and Federal National Mortgage
Association. - B. municipal securities.
- C. moral obligation bonds.
Answer: A
NEW QUESTION 1067
On October 1, 2001, Little Company signed an operating lease for a building with Big Company for 6 years, at $10,000 per year. At the inception of the lease, Little paid $20,000, covering rent for the first two years. Little closed its books on December 31, and correctly reported $20,000 as rent expense on its 2001 income tax return. How much should Little report in the 2001 income statement as rent expense?
- A. $1,667
- B. $0
- C. $2,500
Answer: C
Explanation:
Rent expense for the first three months (October 1 to December 31, 2001) = $10,000 x 3/12
= $2,500.
NEW QUESTION 1068
Which of the following is true? The firm can claim compliance:
- A. even if its track record is less than 5 years.
- B. with a "moving window" of 5-year compliant results.
- C. without all of their composites meeting the GIPS requirements.
Answer: A
Explanation:
If the firm is in existence of less than 5 years, it can claim compliance since its inception, but disclosure of the fact is required.
NEW QUESTION 1069
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