Study guides, Class notes & Summaries

CFA Level 1 - Fixed Income Exam Questions with Correct Answers Coupon Rate Floor - Answer-Minimum periodic coupon interest payment received by lender/security owner. Coupon Rate Collar - Answer-Simultaneous combination of both cap and floor. Regular Redemption - Answer-When bonds are redeemed under the call provisions specified in the bond indenture. Special Redemption - Answer-When bonds are redeemed to comply with a sinking fund provision or because of a property sale mandated by...

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...

CFA LEVEL 1 question with correct answers 2023 graded A+ Financial Statement Analysis Framework - correct answer provides an overview of the methodology used by analysts to consistently analyze financial statements 1. articulate the purpose and context of analysis 2. collecting data 3. process the data 4. analyzing and interpreting the processed data 5. develop/communicate conclusions and recommendations 6. follow up Scope of Financial Statement Analysis - correct answer - analysis is...

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 of probabilities? - 1. Empirical Probability (Past data) 2. Priori Probabili...

CFA Level 1 question and answers rated A+ 2023 updatedGeorge Hutchins, CFA, would like to perform a paired comparisons test on returns for the stocks of two real estate investment trusts. The test statistic that Hutchins should select for the paired comparisons test is the: - correct answer t-Stat Effective annual yield Money Market Yield - correct answer EAY = [(1 + HPY)^(365 / t)] − 1 rMM = HPY × (360/t); In the short run, a perfectly competitive firm's supply curve is: - correct a...

CFA Level 1 Practice Exam Questions with Complete Answers Three steps to computing time-weighted returns - Answer-1) price the portfolio immediately prior to any significant addition or withdrawal of funds 2) calculate the holding period return on the portfolio for each subperiod 3) Link or compound holding period returns to obtain an annual rate or return for the year how to find time-weighted return - Answer-TWR= (Gmean P1)(Gmean P2)^1/2 - 1 dividend discount model formula - Answe...

faithful representation, substance over form, prudence, neutrality, completeness - Answer- According to the IFRS what are the 5 qualities of financial information that improve reliability Costs can be reliably measured - Answer- According to IFRS what condition must be met for revenue recognition to occur? Current ratio will decrease. Accruing wages increases both current liabilities and expenses, but collecting receivables has no effect on current assets or sales therefore the current r...

CFA Level 1 - Fixed Income question and answers graded A+ 2023Bond Indenture - correct answer Contract that specifies all the rights and obligations of the issuer and owners of a fixed income security. Negative Covenants - correct answer Prohibitions on the borrower. Affirmative Covenants - correct answer Actions that the borrower promises to perform. Maturity or Term to Maturity - correct answer Length of time until loan contract or agreement expires. Remaining life of bond. Par Val...

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...

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 ...