[Q545-Q567] Download CFA CFA-Level-I Sample Questions [May-2023]

NO.545 You evaluate the monthly performance of your portfolio managers against a broad market index. At the end of each year, you add up the number of months in which their performance exceeded that of the market index. If the probability of beating the market index each month, after expenses and sales loads, is
6 5%, what is the mean and variance of the number of months in a year a manager would beat the index?

NO.546 The marginal revenue product will shift to the right if

NO.547 You are the landlord of a small office building. The rent is $750 per year paid at the beginning of each year. You always invest the rent payments at a rate of 6% per year. What will be the accumulated value of the invested payments at the end of 5 years?

NO.548 Consider a stock call option with the following characteristics:
Type of option: call option on stock Underlying asset: 100 shares of Coca Cola stock Exercise price: $60 per share Premium: $1.25 per share Expiration date: November
Let the current market price of Coca Cola stock be $62.75 per share. In this case, the call option:

NO.549 According to Standards of Professional Conduct, the following are procedures for compliance for one of the Standards of Professional Conduct:
Maintaining current files, of applicable statutes, rules, regulations and important cases in a readily
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accessible manner.
Keep informed, about any changes of laws.
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Which Standard of Professional Conduct do these compliance procedures relate to?

NO.550 If a 20-day moving average is crossing from above a 60-day moving average, the movement is known as a:

NO.551 A(n) _______ is a numerical descriptive measure of a population, usually unknown.

NO.552 A bank quotes 7.80% with an effective annual interest rate of 8.11%. Is the compounding

NO.553 Which of the following statements regarding investment companies is FALSE?

NO.554 According to Standards of Professional Conduct, as per Standard VII (B): Reference to CFA Institute, the CFA designation, and the CFA program, which of the following ways is NOT considered holding oneself out to be a CFA Charterholder?
I). Placing the designation “CFA” or “CFA Charterholder” after ones name on a resume.
II). Placing the designation “CFA” or “CFA Charterholder” after ones name on a business card, brochure etc.
III). Orally referencing oneself as a current/active/practicing CFA Charterholder.
IV). Displaying the CFA charter in an office or work environment.

NO.555 For a bond to earn the yield to maturity, yield to first call, or yield to first par call the bond is assumed to be

NO.556 Which of the following is (are) true about the Capital Market Theory?
I). A portfolio that lies above the Security Market Line (SML) is under-priced.
II). The correlation between two portfolios on the SML equals +1.
III). Portfolios that lie on the Capital Market Line (CML) are as completely diversified as possible.
IV). Portfolios that lie on the SML are not necessarily completely diversified.

NO.557 1,000 shares of XYZ were purchased for $30,000. After 5 years the shares were sold for $50,000 (no dividends). We have:

NO.558 You have $10,000 in a savings account. You wish to make a withdrawal of $1,769.84 at the end of every year for the next 10 years. After the tenth withdrawal, the account will have a zero balance. How much must the savings account pay in interest per year?

NO.559 Andrea Palmer has saved 25,000 in her bank account. She is thinking of moving it to a money market account that pays a fixed 3.75% stated annual rate, compounded monthly. If Andrea continues to save 600 per month for the next three years, every month-end from her salary, how much money will she have after three years?

NO.560 Of the following statements:
I). In a normal distribution, the coefficient of skewness is 1.0.
II). In normal distribution, approximately 95% of the observations lie within one standard deviation of its mean.

NO.561 Uwe, a foreign exchange student, bought a used car for $8,000 and resold it one year later for $5,300.
Insurance, license and operating costs for the year were $1,900. What were his economic costs of owning and operating the car for the year if the market rate of interest was 10 percent?

NO.562 As the alternative mean approaches the hypothesized mean, what can we say about the risk?

NO.563 An analyst has gathered the following information about a company:
110,000 shares of common outstanding at the beginning of the year.
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The company repurchases 20,000 of its own common shares on July 1.
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Earnings are $300,000 for the year.
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10,000 shares of existing 10 percent cumulative $100 par preferred outstanding that is not in
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arrears at the beginning or ending of the year.The company also has $1 million in 10 percent callable bonds outstanding.
The company has declared a $0.50 dividend on the common.
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What is the company’s basic Earnings per Share?

NO.564 When a public company is in need of additional capital quickly and is willing to sell a sizeable ownership position to a private investor, it will likely seek:

NO.565 The benefits provided by investment companies include all of the following except:

NO.566 Which of the following bonds will have the smallest percentage decrease in price if all required returns increase by 1%?

NO.567 A payment of a cash dividend represents a cash outflow from ________.