Study guides, Class notes & Summaries

CFA Level 1 - 101 Must Knows question with 100% correct answers 2023Addition Rule of Probability - correct answer ADDITION: P(A or B) = P(A) + P(B) - P(AB) Roy's Safety First Criterion - correct answer Safety First Ratio = (E(R) - Rₜ) / σ Larger ratio is better If (Rₜ) is risk free rate, then it becomes Sharpe Ratio Sharpe Ratio - correct answer Sharpe Ratio = (E(R) - RFR) / σ Larger ratio is better If (Rt) is higher than RFR, then it becomes Safety First Ratio Centra...

CFA Level 1 Formulas question with complete solution graded A+ Already passedPrice change based on convexity - correct answer -duration(change in yield)+1/2(convexity)(change in yield)^2 Effective Duration - correct answer Required if a bond has embedded options: [(v-)-(v+)]/[2V0(change in curve)] Modified Duration - correct answer [(v-)-(v+)]/[2V0(change in yield)] Future Value - correct answer PV(1+(I/Y)^N) PV - correct answer FV/(1+r)^n PV of perpetuity - correct answer PMT / d...

CFA Level 1 glossary 2020(updated)question and answersA priori probability - correct answer A probability based on logical analysis rather than on observation or personal judgment. abnormal return - correct answer The amount by which a security's actual return differs from its expected return, given the security's risk and the market's return. absolute advantage - correct answer A country's ability to produce a good or service at a lower absolute cost than its trading partner. Absol...

Current Ratio - Answer- Current Assets divided by current liabilities Quick Ratio - Answer- Cash plus marketable securities plus receivables divided by current liabilities Cash Ratio - Answer- Cash plus marketable securities divided by current liabilities Defensive Interval Ratio - Answer- Cash plus marketable securities plus receivables divided by average daily expenditures Cash Conversion cycle - Answer- days in inventory plus days in accounts receivables minus days in accounts pay...

CFA Exam Questions with Correct Answers Which of the following practices is only used for cleaning up body fluid spills? - Answer-Placing yellow spill pads on fluid area Team Member wearing 3 pair of gloves Spraying disinfectant over yellow spill pads (or disposable towels) to saturate Which of the following practices helps Team Member to refrigerate or cook products promptly, thereby contributing to food safety? - Answer-Break larger food prep tasks into smaller tasks Prepare/assemble s...

CFA Level 1 Sample Questions with 100% Correct Answers Which of the following government actions will most likely lead to an increase in the level of aggregate demand? A reduction in: A transfer payments B public spending on social goods and infrastructure C the capital gains tax - Answer-C If Mexico is running a large current account deficit with Canada, which of the following will most likely occur? A Canada will reduce its imports from Mexico B The Mexican peso will deprecia...

What are the 4 types of measurement scales? - Answer- 1. Nominal Scales 2. Ordinal Scales (Assigned to a category) 3. Interval Scales (Relative ranking) 4. Ratio Scales (Equal differences between scale values) NOIR When do we use geometric and arithmetic means to analyze investment returns? - Answer- Arithmetic Mean: To estimate next year's return Geometric Mean: Measure of past performance What are the 3 different types of probabilities? - Answer- 1. Empirical Probability (Past data...

CFA Level 1 Questions | Questions with 100% Correct Answers | Updated & Verified What are the 4 types of measurement scales? - 1. Nominal Scales 2. Ordinal Scales (Assigned to a category) 3. Interval Scales (Relative ranking) 4. Ratio Scales (Equal differences between scale values) NOIR When do we use geometric and arithmetic means to analyze investment returns? - Arithmetic Mean: To estimate next year's return Geometric Mean: Measure of past performance What are the 3 different types...

CFA( Chartered Financial Analyst )Level I Mock Exam ||2023/2024 Test Bank||Questions & Answers Information about the coupon rates on the various long-term fixed-rate debt issues of a company can most likely be found in the: A notes to the financial statements. B non-current liabilities section of the balance sheet. C Management Discussion and Analysis (MD&A). - ANSWERS A is correct. Information about the coupon rates on the various long-term fixed-rate debt issues can usually be foun...

CFA Exam Questions and Answers (100% Pass) why were the GIPS standards created? - Answer-to help prevent misleading practices such as "representative accounts", where a firm picks a top performaing account to represent overall investmment results Teresa Avila, CFA, is a micro-cap investment analyst at a hedge fund. The fund requires Avila to hold any securities she recommends for the fund in her own account as well. Because Avila has such a small account, whenever she trades for her own ...