CFA一级模考
CFA一级模考
CFA一级模考题1 . A firm has $3 million in outstanding 10-year bonds, with a fixed rate of 8% (assume annual payments). The bonds trade at a price of $92 per $100 par in the open market. The firm’s marginal tax rate is 35%. What is the after-tax component cost of debt to be used in the weighted average cost of capital (WACC) calculations?A) 9.26%.B) 6.02%.C) 5.40%.The correct answer was B 6.02%.If the bonds are trading at $92 per $100 par, the required yield is 9.26% (N = 10; PV = –92; FV = 100; PMT = 8; CPT I/Y = 9.26). The equivalent after-tax cost of this financing is: 9.26% (1 – 0.35) = 6.02%.2 .Genoa Corp. is estimating its weighted average cost of capital (W ACC). They have several pieces of data to consider. The firm pays 40% of its earnings out in dividends. The return on equity (ROE) is 15%. Last year’s earnings were $5.00 per share and the dividend was just paid to shareholders. The current price of shares is $42.00. Genoa's 8% coupon bonds have a yield to maturity of 7.5%. The firm's tax rate is 30%.Part 1)The cost of common equity is closest to:A) 13.76%.B) 14.19%.C) 16.14%.The correct answer was B 14.19%.ROE × retention ratio = growth rate.15% × (1 – 0.40) = 9%D0 = $5.00 × 0.40 = $2.00[$2.00(1.09) / $42.00] + 0.09 = 14.19%3 .Genoa Corp. is estimating its weighted average cost of capital (WACC). They have several pieces of data to consider. The firm pays 40% of its earnings out in dividends. The return on equity (ROE) is 15%. Last year’s earnings were $5.00 per share and the dividend was just paid to shareholders. The current price of shares is $42.00. Genoa's 8% coupon bonds have a yield to maturity of 7.5%. The firm's tax rate is 30%.Part 2)The after-tax cost of debt is closest to:A) 5.3%.B) 7.5%.C) 5.6%.The correct answer was: A7.5 × (1 − 0.3) = 5.25%4 .All of the following practices constitute good corporate governance, EXCEPT:A) the firm’s financial, operating, and governance activities are reported to shareholders in a fair, accurate, and timely manner, and management acts independent of the board of directors.B) there are proper procedures and controls covering management’s day-to-day operations and the firm acts lawfully in dealings with shareholders.C) the board of directors protects shareholder interests, and the shareholders have a voice in governance.The correct answer was: AThe board of directors must be able to act independent of management, not vice versa. Both of the remaining practices are examples of good corporate governance.5 .All of the following negatively affect shareholders’ proxy voting rights, EXCEPT:A) allowing proxy voting by means other than a paper ballot.B) preventing investors who wish to vote their shares from trading during a period prior to the annual meeting.C) requiring attendance at the annual meeting.The correct answer was: AAllowing proxy voting by means other than a paper ballot has a positive impact on shareholders’ proxy voting rights. Both of the remaining choices negatively affect shareholders’ proxy voting rights.。
(完整版)CFA一级模考试题及答案.doc
ANSWERS FOR MOCK EXAM 1 (MORNING SESSION)1. D.Although Terence has passed Level III, he has not yet received his charter andcannot use the CFA designation. The description provided in the cover letterproperly describes his situation.2. C.Amy must take both actions-notifying her immediate supervisor and delivering acopy of the Code and Standards.3. D.4. C.Members may undertake an independent practice that could result in compensationor other benefit in competition with their employer provided they obtain writtenconsent from both their employer and the party for whom they undertakeindependent practice.5. C.To maintain his objectivity, Keith should pay his own hotel bill. Because the itineraryrequired charter flights due to a lack of commercial transportation, A& K Limited can appropriately provide them.6. C. Under ERISA, fiduciaries must act solely in the interest of, and for the exclusivepurpose of benefiting, the plan participants and beneficiaries.7. B. Daniel must give priority to transactions for clients and employers over transactionsfor his children.8. A.To avoid violating the standards, members cannot trade until the member's clients andemployers have had an adequate opportunity to act on the recommendation.9. C.The requirements of Standard IV (B.5) are not intended to prevent Lambert fromcooperating with an investigation by AIMR's Professional Conduct Program.10. B.Vivian should disclose to her clients and prospects her husband's holdings in DoubleLimited because this matter could be expected to impair her ability to makeunbiased and objective recommendations.11. B.12. B.Accruals accounting is required.13. C.Standard I(B) Fundamental Responsibilities. Prohibition against participating orassisting in illegal and ethical violations. If Roberts suspects someone isplanning or engaging in illegal activities, he should: (1) determine the legalityof the activities, (2) disassociate himself from the illegal or unethical activity, and(3) urge his firm to attempt to persuade the perpetrator to stop. The AIMRStandards of Professional Conduct do not require that Roberts report suchactivities to the authorities, but the law might.14. C.Standard III(C) Disclosure of Conflicts to Employer. Gloria should disclose to heremployer all matters that could reasonably be expected to interfere with herability to make unbiased and objective recommendations. Her service as atrustee of the Well Limited Foundation for Heart Research is most likely to beconsidered a conflict of interest with her responsibility to her employer.15. C.Standard III (E) Responsibilities of Supervisors. Paul may delegate supervisory duties,but such delegation does not relieve him of his supervisory responsibility.16. A.Standard IV (B.3) Fair Dealing. Johnson violated the standard on fair dealingbecause he did not deal fairly and objectively with all clients and prospectswhen disseminating investment recommendations. Instead, he showedfavoritism to his best clients. In disseminating investment recommendations,Johnson should consider making the information available to clients based ontheir interest and suitability. A change of recommendation from buy to sell or sellto buy is generally material.17. D.Standard IV(B.5) Preservation of Confidentiality. Choice B is false because thisAnswers for Mock Exam 1 (Morning Session) (Rev. 1) 1standard prohibits members from executing settlement agreements that preventmembers from providing information in an investigation by AIMR's ProfessionalConduct Program (PCP). Choice C is false because a person cannot withholdinformation during PCP investigations. Choice A is false because if a memberreceives information due to his or her special relationship with the clientindicating illegal behavior on the past of the client, the member may not have anobligation to inform the appropriate authorities.18. A.Standard IV(B.6) Prohibition against Misrepresentation. Members are not permitted tomake any assurances or guarantees about any investment, except tocommunicate accurate information. The statement that investment grade bondshave less default risk than junk bonds is an accurate statement.19. e BGN node: n = 10; i = 12 PMT = 1,000, compute FV = 19.654.5820. B.The present value of a perpetuity is PV = A/r = 500/0.1 = $5,000.21. B.i = 6/12 = 0.5; n = 10x12 = 120; PV = 40,000 Compute PMT22. A.23. A.A binomial random variable has an expected value or mean equal to np andvariance equal to np(1-p).Mean = 12(0.5) = 6; variance (12)(0.5)(1-0.5) = 324. D.25. B.Rbt-1 = In St+1 /St = (1+RL1-1) = In (40/25) = 0.47. Thus, 47% is thecontinuously computed return for the one-year holding period.26. B.Choice A describes cross-sectional data.Choice B describes time-series data.27. D.The dependent variable, Y, is equal to the intercept, b0, plus a slope coefficient, b1,times the independent, X, plus an error term, ε.28. C.I N FV Compute PV10 1 100 90.9110 2 150 123.9710 3 200 150.2610 4 250 170.75Total 535.8929. B.Step 1: Solve for the PV of the 5 payments of 3,000 to be received in years 3through 7.n = 5; i = 10; PMT = 3,000; compute PV =11,372.3611,372.36 falls one year before the first payment, or in year 2.Step 2: Find the present value of 11,372.36 that is two years in the future. n= 2; i = 10; FV =11,372.36; compute PV =9,398.64 or 9,399(rounded).30. D.From weakest to strongest, the ordering of measurements scales is nominal, ordinal,interval, and ratio.31. B.An interval is a set of return values within which an observation not falls.32. C.Step 1. Calculate the mean monthly return = 2% + (- 4%) + 1% + 5% = 4%M = 1%Step 2.Calculate the population standard deviation:([(2% - 1%) 2 + (-4% -1%) 2 +(1% - 1%) 2 +(5% -1%)2 ]N)1/ 2=3.24%Step 3. Calculate the sample standard deviation: ([(2% - 1%)2 + (-4% -1%) 2+ (1% - 1%) 2+ (5% - l%) 2 ])/n - 1) 1/ 2 = 3. 74%33. B.According to Chebyshev's inequality, the proportion of the observations within 2,which is k, standard deviations of the mean is at least 1 -(l/k) 2 = 1-(1/2 2) =0.75 or 75%.34. A.The probability is 30/200 = 0.15.35. ing the addition rule for probabilities, P (analyst or positive) =P(analyst) +Answers for Mock Exam 1 (Morning Session) (Rev. 1) 2P(positive) - P(analyst and positive)P (A or positive) = 130/200 + 140/200 - (100/130) = 0.58 or 58%36. B.Savings increases to hold interest rates constant. This means aggregate demandchanges little.37. C.The empirical evidence on the relationship between budget deficits and interest ratesis mixed.Few studies show a significant positive short-term link between budgetdeficits and real interest rates.38. B.Expansion = 1 / reserve requirement = 1/0.25 = 4(4)(150) = 60039. C.People realize this leads to inflation in the long run, so they reduce their moneyholdings. Output rises because the increase is unexpected.40. C.In purely competitive markets, there are a large number of dependent firms.41. D.42. D.43. C.44. C.45. D.Choice A: Accrual accounting does not require the receipt of cash for assurance ofpayment to exist.Choice C and D: These relate only to the condition of completion of theearnings process.46. D.47.ADemand for currency decreases when real interest rates decrease because ofdecreased capital flows.48.CForeign exchange quotations can be expressed on a direct basis -the home currencyprice of another currency — or an indirect basis-- the foreign currency price ofthe home currency.49.C F/S= (1 + r D )/(l + r F) where rates are listed as DC/FCF = (1.3/1.25)(0.4) = 0.41650. C.Direct method:Net income 1000Depreciation 70Goodwill 30Change in accounts receivable 25Change in inventory (35)Change in accounts payable 30Change in wages payable 15Operating cash flows 113551. B. Purchase equipment (200)Sell truck 25Investing cash flows (175)52. D. Sale of common stock 100Issuance of bonds 20Financing cash flows 12053. D.A common size balance sheet expresses all balance sheet accounts as apercentage of total assets.54. C. Original shares of common stock = 1,000,000(12) = 12,000,000Stock dividend = 200,000(12) = 2,400,000New shares of common stock = 200,000(3) = 600,000Total shares of common stock = 15,000,000/12= 1,250,000 Stock dividends are assumed to have been outstanding since the beginningof the year.55. D.Inventory turnover, defined as COGS/Average inventory, if often meaningless forLIFO companies due to the mismatching of costs. The numerator representscurrent costs, whereas the denominator reports outdated historical costs. Thus,the turnover ratio under LIFO will, when prices decrease, trend lower becauseof small COGS and larger inventory. Net profit margin, defined as EA T/Sales,is higher during periods of decreasing profits for LIFO companies. LIFO leadsto a smaller COGS, which reduces EAT, without affecting sales.56. A.In this situation, LIFO results in lower cost of goods sold because it uses the morerecent and lower costs than LIFO. LIFO results in lower cash flows becausethe cash on income taxes is a percentage(the marginal tax rate) of thedifference in inventory values. Thus, with LIFO:Sales-COGS(smaller)EBT (larger)-Taxes (larger) Because taxes paid out are a cash outflow.EAT (larger) If taxes are larger, then cash flow ill be smaller.57. D.COGSFIFO = COGSLIFO - (Ending LIFO Reserve - Beginning LIFO Reserve)COGSFIFO = $250,000 - ($8,000-$5,000) = $247,00058. pared to expensing, capitalizing results in higher profitability in early yearsand lower profitability in later years.59. C.60. D.The present value of the minimum lease payments equals or exceeds 90 percent ofthe value of the fair value of the leased property.61. B.Capital lease affects on the income statement:Step1: Calculate the depreciation charge: ($3,500,000-$450,000)/10 = $305,000Step2: Calculate the interest expense: $3,500,000(0.15) = $525,000Total expense: $305,000+$525,000 = $830,00062. A.63. C.64. A.65. B.66. D.67. B.Dealer-markets are price-driven markets.68. D.69. C.70. C.P/E = Dividend payout ratio/(k-g)Dividend payout ratio = 1 - retention ratio = 1-0.2 = 0.8P/E = 0.8(0.15-0.08) =5.671. B.k = D1/P0+g = $4/$25+0.09 = 0.2572. A.Step1: Calculate the ending index value = ($100)(5) = $500Step2: Calculate the expected return.E(R1) = [Dividends + (Ending value - Beginning value)]/(Beginning value)=[40+(500-490)]/$490 = 0.1 or 10%73. D.The critical factors determining the franchise P/E are the difference between theexpected return on the new opportunities (R) and the current cost of capital (k)and the size of these growth opportunities relative to the firm's current size.74. A.75. C.76. D The completed contract method less net income in the periods beforeconstruction is completed, but not at the end of the contract, than using thepercentage-of-completion method. This is because the completed contractmethod recognizes revenue and expense only when the contract has beencompleted.77. A. Net income 1,000Adjustment for non-cash andnon-operating itemsDepreciation 100Deferred taxes (increase) 40Profit from sale ofequipment (10)Adjustment for workingcapital items:Accounts receivable (decrease) (120)Inventory (increase) (40)Accounts payable (increase) (20)Wages payable (decrease) (10)Cash flow from operations 94078. D79.A When inventory and accounts receivable increase, this is a use of cash (cashoutflow); when assets decrease, this is a source (cash inflow). When accountspayable increase, this is a source of cash (cash inflow); when liabilities decrease,this is a use (cash outflow).80.BCash conversion cycle = receivables days + inventory processing days -payables payment period.Receivables days = 365/receivabies turnover = 365/30 = 12.17 days.Inventory processing days = 365/inventory turnover = 365/15 = 24.33 days.Payables payment period = 365/payabIes turnover = 365/20 = 18.25days.Cash collection cycle = 12.17 + 24.33 –18.25 = 18.25 days.81.BChoice A: Buying fixed assets on credit does not affect current assets butincreases current liabilities. Therefore, the current ratio falls.Choice B: Buying inventory on account increases both inventory and accountspayable. Because the current ratio started off below I, the ratio will increase.Choice C: Selling marketable securities for cash does not affect the amount ofcurrent assets and leaves the current ratio unaffected,Choice D : Paying off accounts payable from cash lowers current assetsand current liabilities by the same amount. Because the current ratio startedoff below 1, the ratio will fall.82.D ROE = Profit margin x Total asset turnover x financial leverageROE = (0.3)(2.1)(0.5)= 0.315 or 31.5%83.AROE = [(S/A)(EBIT/S) - (I/A)](A/EQ)(I - t)ROE = [(2.5)(0.2) - (0.08)](1.2)(0.6) = 0.30 or 30%84. A85.B EPS = ($180,000 - $4,000) / 50,000 = $3.52 per share86. B87. D88.CThese relationships are reversed in the latter years of the asset's life if the firm'scapital expenditures decline.89. D90. C.91. C.92. D.93. D.Absolute yield spread = Yield on Bond A - Yield on Bond B = 10%-7% = 3%94. B.Relative yield spread = (Yield on Bond A - Yield on Bond B)/(Yield on BondB)=(10%-7%)/7% = 0.43 = 43%95. B.Yield ratio = (Yield on Bond A)/(Yield on Bond B) = 6%/7% = 1.4396. B.Current yield = (Annual dollar coupon interest)/(Price of the bond) = 8/130 =0.0625 or 6.25%97. A.When the stock's price (S) - the strike price (X) is positive, a call option isin-the-money. 25-X = 8 so X = 17.98. A.99. A.The writer of put loss = $60-premiun$5 = $55 Thewriter of call gets a maximum gain of $8100. A.101. C.102. D.103. A.104. D.105. B.106. D.107. C.108. A.Securities that fall on the SML are properly valued.109. A.110. A.If a stock's beta were equal to 1, an investor would be expected to get the marketrate of return from buying the stock. E(R) = 5%+1(10%-5%) = 10% 111. D112. D113. C114.BPerfect positive correlation (r = + 1) of the returns of two assets offers no risk reduction, whereas perfect negative correlation (r = -1) offers the greatestrisk reduction.115.BPortfolio A does not lie on the efficient frontier because it has a lower return than Portfolio B but has greater risk. Portfolio D does not lie on the efficient frontier because it has higher risk than Portfolio C but has the same return. 116. C.117.DChoice A: Unsystematic risk is diversifiable risk.Choice B: Systematic risk is undiversifiable risk.Choice C: Total risk= Systematic risk+ Unsystematic risk.118. C119.DCAPM specifies the factor (market risk) but APT does not.120. A。
CFA一级模考
The correct answer was B Retention ratio equals 1 – 0.40, or 0.60. Return on equity equals (10.0%)(2.0)(1.5) = 30.0%. Dividend growth rate equals (0.60)(30.0%) = 18.0%.
4 . Commercial industry classification systems such as the Global Industry Classification Standard (GICS) typically classify firms according to their: A)correlations of historical returns. B)sensitivity to business cycles. C)principal business activities.
CFA一级模考题
1 . A high growth rate would be consistent with: A)a high ROE. B)a high dividend payout rate. C)a low retention rate.
The correct aห้องสมุดไป่ตู้swer was: A Since g = retention rate * ROE, or (1 - payout ratio) * ROE, the only choice that would result in a higher g is a higher ROE. A low ROE, or a high dividend payout rate (which is the same as a low retention rate) would result in a low growth rate.
CFA一级模考
CFA一级模考题1 . Which of the following is typically the first general step in the portfolio management process?A) Write a policy statement.B) Develop an investment strategy.C) Specify capital market expectations.A was correct!The policy statement is the foundation of the entire portfolio management process. Here, both risk and return are integrated to determine the investor’s goals and constraints.2. Which of the following statements about the importance of risk and return in the investmentobjective is least accurate?A) Expressing investment goals in terms of risk is more appropriate than expressing goals interms of return.B) The return objective may be stated in dollar amounts even if the risk objective is stated inpercentages.C) The investor’s risk tolerance is likely to determine what level of return will be feasible.A was correct!Expressing investment goals in terms of risk is not more appropriate than expressing goals in terms of return. The investment objectives should be stated in terms of both risk and return. Risk tolerance will likely help determine what level of expected return is feasible.3. The expected market premium is 8%, with the risk-free rate at 7%. What is the expected rateof return on a stock with a beta of 1.3?A) 17.4%.B) 16.3%.C) 10.4%.A was correct!RR Stock = R f + (R Market− R f) × Beta Stock, where RR = required return, R = return, and R f= risk-free rate, and (R Market− R f) = market premiumHere, RR Stock = 7 + (8 × 1.3) = 7 + 10.4 = 17.4%.4. In Fama and French’s multifactor model, the expected return on a stock is explained by:A) firm size, book-to-market ratio, and excess return on the market portfolio.B) firm size, book-to-market ratio, and price momentum.C) excess return on the market portfolio, book-to-market ratio, and price momentum.A was correct!In the Fama and French model, the three factors that explain individual stock returns are firm size, the firm’s book value-to-market value ratio, and the excess return on the market portfolio. The Carhart model added price momentum as a fourth factor.5. The following information is available for the stock of Park Street Holdings:●The price today (P0) equals $45.00.●The expected price in one year (P1) is $55.00.●The stock's beta is 2.31.●The firm typically pays no dividend.●The 3-month Treasury bill is yielding 4.25%.●The historical average S&P 500 return is 12.5%.Park Street Holdings stock is:A) undervalued by 3.7%.B) overvalued by 1.1%.C) undervalued by 1.1%.B was correct!To determine whether a stock is overvalued or undervalued, we need to compare the expected return (or holding period return) and the required return (from Capital Asset Pricing Model, or CAPM).Step 1: Calculate Expected Return (Holding period return):The formula for the (one-year) holding period return is:HPR = (D1 + S1– S0) / S0, where D = dividend and S = stock price.Here, HPR = (0 + 55 – 45) / 45 = 22.2%Step 2: Calculate Required Return:The formula for the required return is from the CAPM:RR = R f + (ER M– R f) × BetaRR = 4.25% + (12.5 – 4.25%) × 2.31 = 23.3%.Step 3: Determine over/under valuation:The required return is greater than the expected return, so the security is overvalued.The amount = 23.3% − 22.2% = 1.1%.。
CFA一级模考
CFA一级模考题1 . Which of the following should least likely be included as a constraint in an investment policystatement (IPS)?A) Constraints put on investment activities by regulatory agencies.B) Any unique needs or preferences an investor may have.C) How funds are spent after being withdrawn from the portfolio.C was correct!How funds are spent after withdrawal would not be a constraint of an IPS.2. Based on historical data for the United States, compared to long-term bonds, equities havetended to exhibit:A) higher average annual returns and higher standard deviation of returns.B) higher average annual returns and lower standard deviation of returns.C) lower average annual returns and higher standard deviation of returns.A was correct!Based on data for securities in the United States from 1926 to 2008, both small-cap stocks and large-cap stocks have exhibited higher average annual returns and higher standard deviations of returns than long-term corporate bonds and long-term government bonds.3. An analyst has developed the following data for two companies, PNS Manufacturing (PNS)and In Charge Travel (In Charge). PNS has an expected return of 15% and a standarddeviation of 18%. In Charge has an expected return of 11% and a standard deviation of 17%.PNS’s correlation with the market is 75%, while In Charge’s correlation with the market is 85%. If the market standard deviation is 22%, which of the following are the betas for PNS and In Charge?Beta of PNS Beta of In ChargeA) 0.66 0.61B) 0.92 1.10C) 0.61 0.66C was correct!Beta i = (s i/s M) × r I, MBetaPNS = (0.18/0.22) × 0.75 = 0.6136BetaInCharge = (0.17/0.22) × 0.85 = 0.65684. Which is NOT an assumption of capital market theory?A) Investments are not divisible.B) There are no taxes or transaction costs.C) There is no inflation.A was correct!Capital market theory assumes that all investments are infinitely divisible. The otherstatements are basic assumptions of capital market theory.5. Which of the following statements about portfolio theory is least accurate?A) When the return on an asset added to a portfolio has a correlation coefficient of less thanone with the other portfolio asset returns but has the same risk, adding the asset will notdecrease the overall portfolio standard deviation.B) Assuming that the correlation coefficient is less than one, the risk of the portfolio willalways be less than the simple weighted average of individual stock risks.C) For a two-stock portfolio, the lowest risk occurs when the correlation coefficient is closeto negative one.A was correct!When the return on an asset added to a portfolio has a correlation coefficient of less than onewith the other portfolio asset returns but has the same risk, adding the asset will decrease the overall portfolio standard deviation. Any time the correlation coefficient is less than one, there are benefits from diversification. The other choices are true.。
CFA一级模考
CFA一级模考题1 . Which of the following statements regarding leverage is most accurate?A) A firm with low operating leverage has a small proportion of its total costs in fixed costs.B) A firm with high business risk is more likely to increase its use of financial leverage thana firm with low business risk.C) High levels of financial leverage increase business risk while high levels of operatingleverage will decrease business risk.A was correct!A firm with high operating leverage has a high percentage of its total costs in fixed costs.2 . Which of the following is a key determinant of operating leverage?A) The competitive nature of the business.B) The tradeoff between fixed and variable costs.C) Level and cost of debt.B was correct!Operating leverage can be defined as the trade off between variable and fixed costs.3 . One of the issues shareholders should consider is the issue of confidential voting of proxies.Which of the following statements would be considered most accurate in regard to proxy voting and confidential votes?A) It is an SEC requirement that the proxy voting process be confidential.B) Confidentiality of voting does not ensure that all votes are counted equally.C) Shareholders are more likely to vote conscientiously if allowed to do so confidentially.C was correct!Shareholders will be more likely to vote and vote conscientiously if they are sure that board members and/or management will not find out how they voted. There is no SEC requirement of confidentiality regarding proxy voting. Confidentiality of voting does insure that all votes are counted equally.4 . A critical corporate governance issue is ensuring that the board and its members have therequisite experience needed to properly govern the firm for the shareholders’ benefit. When considering board member qualifications, investors and shareholders should consider whether board members can act with care and competence as a result of their experience with all of the following EXCEPT:A) legal issues.B) the competitive landscape the firm faces.C) technologies, products, services which the firm offers.B was correct!Knowledge of the firm’s competitive landscape is likely beyond what a board member should have intimate knowledge about. The other items are all issues a board member should be knowledgeable about. Other issues board members should have experience with includefinancial operations, accounting and auditing topics, and business risks the firm faces.5 . Shareholder-sponsored resolutions are something investors can consider in order to be “heard”.These resolutions do have implications for investors. Which of the following statementsregarding shareholder-sponsored resolutions is least accurate?A) The ability shareholders have to propose needed changes in a firm can serve to erodeshareholder value.B) The right to propose initiatives for consideration at the firm’s annual meeting is one wayfor shareholders to send a message that they are dissatisfied with the way the board ishandling one or more firm matters.C) The right to propose initiatives for consideration at the firm’s annual meeting is one wayfor shareholders to send a message that they are dissatisfied with the way management is handling one or more firm matters.A was correct!The ability to bring issues in front of the board and/or management can serve to preventerosion of shareholder value.。
CFA一级模考
CFA一级模考题1.Expected loss is greatest for a corporate bond with a low:A) recovery rate and a high probability of default.B) recovery rate and a low probability of default.C) loss severity and a high probability of default.A was correct!The combination of low recovery rate (high loss severity) and high probability of default will lead to greatest expected loss.2. Yield spreads tend to widen when equity market performance is:A) weak.B) stable.C) strong.A was correct!Conditions that cause equity markets to weaken, such as poor economic growth, also tend towiden yield spreads in the bond market. Likewise, strong equity market performance tends to coincide with narrowing yield spreads. Yield spreads tend to narrow when equity markets are stable because investors "reaching for yield" increase their demand for bonds.3. Which of the following is a limitation of the portfolio duration measure? Portfolio durationonly considers:A) the market values of the bonds.B) a linear approximation of the actual price-yield function for the portfolio.C) a nonparallel shift in the yield curve.B was correct!Duration is a linear approximation of a nonlinear function. The use of market values has no direct effect on the inherent limitation of the portfolio duration measure. Duration assumes a parallel shift in the yield curve, and this is an additional limitation.4. An investor gathered the following information on two U.S. corporate bonds:Bond J is callable with maturity of 5 yearsBond J has a par value of $10,000Bond M is option-free with a maturity of 5 yearsBond M has a par value of $1,000For each bond, which duration calculation should be applied?Bond J Bond MA) Effective Duration Modified Duration or Effective DurationB) Modified Duration Effective Duration onlyC) Effective Duration Effective Duration onlyA was correct!Effective duration is that effective duration is used for bonds with embedded options.Modified duration assumes that all the cash flows on the bond will not change, while effective duration considers expected cash flow changes that may occur with embedded options.5. Which of the following assets is most likely to represent high- qualitycollateral in credit analysis?A. Goodwill.B. Trademarks.C. Deferred tax assets.。
CFA一级模考
CFA一级模考题1 .Which of the following sources of credit would an analyst most likely associate with a borrower of the lowest credit quality?A) Committed line of credit.B) Uncommitted line of credit.C) Revolving line of credit.The correct answer was BCommitted lines and revolving lines of credit all contain a commitment by a lender to lend up to a maximum amount, at the borrower’s option for some period of time. A firm with lower credit quality may have an uncommitted line of credit which offers no guarantee from the lender to provide any specific amount of funds in the future.2 . Which of the following activities would least likely be an example of good corporate governance?A) Management is allowed to act independently of board of directors.B) The board has decided to eliminate finders’ fees for its members for any potential acquisitions that are brought to management’s attention.C) The board of directors has decided to conduct a self-assessment.The correct answer was A) Management is allowed to act independently of board of directors. The board of directors should be allowed to act independently of management. Management should not be allowed to act independently from the board.3 . A firm has average days of receivables outstanding of 22 compared to an industry average of29 days. An analyst would most likely conclude that the firm:A) has better credit controls than its peer companies.B) has a lower cash conversion cycle than its peer companies.C) may have credit policies that are too strict.The correct answer was C) may have credit policies that are too strict.The firm’s average days of receivables should be close to the industry average. A significantly lower average days receivables outstanding, compared to its peers, is an indication that the firm’s credit policy may be too strict and that sales are being lost to peers because of this. We can not assume that stricter credit controls than the average for the industry are “better.” We cannot conclude that credit sales are less, they may be more, but just made on stricter terms. The average days of receivables are only one component of the cash conversion cycle.4 . Pearl City Breweries has 8 million shares outstanding that are currently trading at $34 per share. The company is choosing whether to distribute $22 million as dividends or to use the same amount to repurchase its shares. Ignoring tax effects, what will be the amount of total wealth from owning one share of Pearl City Breweries under each of these alternatives?Cash dividend Share repurchaseA) $34.00 $34.00B) $31.25 $37.00C) $31.25 $34.00The correct answer was A)$34.00 $34.00If the company pays a cash dividend, the dividend per share will be $22 million/8 million = $2.75. The value of its shares will be:So the total wealth from owning one share will be $31.25 + $2.75 = $34.00.If the company repurchases shares, it can buy $22 million/$34 = 647,058 shares. The value of one share would then be:If you remember that both a cash dividend and a share repurchase for cash leave shareholder wealth unchanged, this question does not require calculations of the amounts.5 . A firm has $4 million in outstanding bonds that mature in four years, with a fixed rate of 7.5% (assume annual payments). Th e bonds trade at a price of $98 in the open market. The firm’s marginal tax rate is 35%. Using the bond-yield plus method, what is the firm’s cost of equity risk assuming an add-on of 4%?A) 11.50%.B) 12.11%.C) 13.34%.The correct answer was BIf the bonds are trading at $98, the required yield is 8.11%, and the market value of the issue is $3.92 million. To calculate this rate using a financial calculator (and figuring the rate assuming a $100 face value for each bond), N = 4; PMT = 7.5 = (0.075 ×100); FV = 100; PV = -98; CPT →I/Y = 8.11. By adding the equity risk factor of 4%, we compute the cost of equity as 12.11%.。
CFA一级模考
CFA一级模考题1 . Marilyn Walters, CFA, supervises a large group of research analysts. Walters has delegated some of her supervisory responsibilities to her ' assistant, Amy Brooks, who is a CFA candidate. In carrying out her responsibilities, Brooks has discovered that the firm's compliance system is inadequate and informed Walters, who has not been very supportive of Brooks's efforts to correct the situation. According to CFA Institute Standards of Professional Conduct, Brooks:A. must dissociate herself from the firm because the firm is not in compliance with the CFA Institute Standards.B. should decline in writing to accept supervisory responsibilities until a reasonable compliance system is adopted.C. has satisfied her obligation under the Code and Standards by informing her manager of the situation.解析 B Standard IV(C) Responsibilities of Supervisors indicates that a member should decline supervisory responsibility in writing until the firm adopts reasonable compliance procedures. Otherwise, Brooks cannot adequately exercise her responsibility.2 . Not including the results of terminated accounts when calculating historical performance is recommended by:A. both GIPS and the Standard concerning performance presentationB. GIPS, but not by the Standard concerning performance presentation.C. neither GIPS nor the Standard concerning performance presentation.解析C Standard III(D) Performance Presentation recommends that terminated accounts be included in historical performance calculations.3 . Ken Toma, a CFA charter holder and securities analyst for the leisure services industry, has just completed an extensive review of the demand for beach vacations in Hawaii and concluded that the demand will far exceed the supply for the foreseeable future. Toma writes a research report stating, "Based on the fact that the demand for Hawaiian beach vacations will exceed the supply of rooms for the foreseeable future, I recommend the purchase of shares of the Hawaiian Fund, a diversified portfolio of Hawaiian beachfront resorts." If Toma presents this report to his clients, he will have violated the CFA Institute Standards:A. because he did not distinguish between fact and opinion.B. by failing to have a reasonable and adequate basis for his recommendation.C. because he did not consider the suitability of the investment for his clients.解析 A Standard V(B) Communication with Clients and Prospective Clients requires that Toma separate opinion from fact. Toma's statement that excess demand will persist into the foreseeable future is an opinion, not a fact.4 . Derek Stevens, CFA, man ages the pension plan assets of Colors, Inc. When voting proxies for plan equities, Stevens owes a fiduciary duty to:A. the plan trustees who hired him.B. the plan participants and beneficiaries.C. the managers, stockholders, and bondholders of Colors, Inc. equally.解析B Under Standard III(A) Loyalty, Prudence, and Care, the fiduciary duty in this case is to plan participants and beneficiaries, not shareholders or plan trustees.5 . Dawn Shields, CFA, decides to change her recommendation on TeISky from "buy" to "sell." In the morning, she mails the revision to all her clients with a known interest in TeISky. That afternoon, one of these clients calls in an order to buy 15,000 shares of TeISky. According to the Standard on fair dealing, Shields:A. must accept the order without mentioning the change because the Standard requires her to inform all clients of the change in recommendation simultaneously.B. should advise her customer of the change in her recommendation before accepting the order.C. must not accept the order until the customer has had time to receive and read the new report.解析B According to Standard III(B) Fair Dealing, if a client places an order that goes against the firm's recommendation for that security, members and candidates should inform the client of the discrepancy between the order and the firm's recommendation before accepting the order.。
CFA一级模考
CFA一级模考题1 . Which of the following is NOT an assumption of capital market theory?A) Investors can lend at the risk-free rate, but borrow at a higher rate.B) The capital markets are in equilibrium.C) Interest rates never change from period to period.The correct answer was ACapital market theory assumes that investors can borrow or lend at the risk-free rate. The other statements are basic assumptions of capital market theory.2 . The optimal portfolio in the Markowitz framework occurs when an investor achieves the diversified portfolio with the:A) highest utility.B) highest return.C) lowest risk.The correct answer was AThe optimal portfolio in the Markowitz framework occurs when the investor achieves the diversified portfolio with the highest utility.3 . All of the following are investment constraints EXCEPT:A) tax concerns.B) pension plan contributions of the employer.C) liquidity needs.The correct answer was BInvestment constraints include: liquidity needs, time horizon, tax concerns, legal and regulatory factors and unique needs and preferences. While employer contributions may be of interest, and an issue in some instances, it is not classified as a specific investment constraint.4 . Which of the following statements about risk and return is least accurate?A) Specifying investment objectives only in terms of return may expose an investor to inappropriately high levels of risk.B) Risk and return may be considered on a mutually exclusive basis.C) Return objectives may be stated in absolute terms.The correct answer was: BRisk and return must always be considered together when expressing investment objectives. Return objectives may be expressed either in absolute terms (dollar amounts) or in percentages.5 . There are benefits to diversification as long as:A) there is perfect positive correlation between the assets.B) the correlation coefficient between the assets is less than 1.C) there must be perfect negative correlation between the assets.The correct answer was: BThere are benefits to diversification as long as the correlation coefficient between the assets is less than 1.。
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The correct answer was B 200 shares × $35 = $7000 Initial Market Value $7000 × .50 = $3500 cash payment and $3500 borrowed. The new market value of the stock after price increase is (200 × $42) = $8400. If Ritchie sold his holdings he would have $4900 ($8400 – $3500) left after the loan was paid. So Ritchie’s return on his original $3500 investment is: $4900/3500 – 1 = 1.4 – 1.0 = 0.40 = 40%.
3 . If the efficient markets hypothesis is true, portfolio managers should do all of the following EXCEPT: A)Minimize transaction costs. B)Spend more time working on security selection. C)Work more with clients to better quantify their risk preferences.
The correct answer was C The underwriter provides the following services to the issuer: Origination, which involves the design, planning, and registration of the issue. Risk bearing, which means the underwriter guarantees the price by purchasing the securities. Distribution, which is the sale of the issue.
The correct answer was C The target market of an index is the securities market or portion of a securities ห้องสมุดไป่ตู้arket that the index will be designed to represent. The securities from the target market that are included in the index are called its constituent securities.
CFA一级模考题
1 . The target market for a security market index is best described as the: A)consumers who will purchase the licensing rights for the index. B)securities that are included in the index. C)market or segment the index is designed to measure.
5 . Which of the following is least likely a service provided by an underwriter in the primary market? A)Origination. B)Risk Bearing. C)Diversification.
2 . Commodity price indexes are based on the prices of: A)real assets such as grains, oil, and precious metals. B)futures contracts. C)commodities.
The correct answer was B The constituent securities of commodity price indexes are commodity futures contracts. As a result, the return on a commodity index can be different than the returns from holding the constituent commodities themselves.
The correct answer was B In an efficient market all stocks are properly priced and reflect all publicly available information. Therefore, individual selection of stocks is not important the only thing that is relevant is the portfolio’s beta.
4 . Mark Ritchie purchased, on margin, 200 shares of TMX Corp. stock at a price of $35 per share. The margin requirement was 50%. The stock price has increased to $42 per share. What is Ritchie’s return on investment before commissions and interest if he decides to sell his TMX holdings now? A)20%. B)40%. C)10%.