Check Real CFA CFA-Level-I Exam Question for Free (2023) [Q254-Q276]

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Check Real CFA CFA-Level-I Exam Question for Free (2023)

Get Ready to Boost your Prepare for your CFA-Level-I Exam with 2200 Questions

The CFA Level I certification exam is a challenging but rewarding endeavor for those who are passionate about finance and investment management. Earning the certification can open doors to new career opportunities and is a testament to the candidate’s dedication and expertise in the field. With careful preparation and a commitment to learning, candidates can successfully pass the exam and take the first step towards becoming a Chartered Financial Analyst.

NEW QUESTION 254
Which of the following should be classified as investing cash flow?
I). purchase and sale of debt of other entities.
II). loans to other entities and collection of loans to other entities.
III). issuance and redemption of debt (bonds and notes).
IV). payments of interest on the company’s debt securities.

none of them.

I and II.

I only.

NEW QUESTION 255
Inventories valued using ______ are least likely to incur inventory write-downs.

FIFO.

LIFO.

Weighted average cost.

NEW QUESTION 256
Which of the following is NOT one of the major areas where financial ratios are used?

Systematic risk.

Bankruptcy.

Capital budgeting.

NEW QUESTION 257
Which of the following bonds will have the smallest percentage decrease in price if all required returns increase by 1%?

20-year zero-coupon bond

20-year 10% coupon bond

1-year 10% coupon bond

NEW QUESTION 258
To measure relative risk an analyst should use:

standard deviation.

tracking error.

value at risk.

NEW QUESTION 259
With respect to the portfolio management process, the security analysis is done in the

planning step.

execution step.

feedback step

NEW QUESTION 260
You invest $100 in a risky asset with an expected rate of return of 12% and a standard deviation of
1 5% and a T-bill with a rate of return of 5%. A portfolio that has an expected outcome of $115 is formed by:

investing $80 in the risky asset and $20 in the risk-free asset.

borrowing $43 at the risk-free rate and investing the total amount ($143) in the riskyasset.

investing $43 in the risky asset and $57 in the riskless asset.

NEW QUESTION 261
Which of the following statements regarding deferred taxes is CORRECT?

A deferred tax asset is created when the reported pre-tax income is lower than taxable income.

A deferred tax liability is created when taxes payable exceed the income tax expense.

A deferred tax asset is created when the income tax expense exceeds taxes payable.

NEW QUESTION 262
FasGrow is a no growth firm and has two million shares outstanding. It is expected to earn a constant
2 0 million per year on its assets. If all earnings are paid out as dividends and the cost of capital is 10%, calculate the current price per share for the stock.

$200

$100

$150

NEW QUESTION 263
A consistent estimator is an estimator

where the expected value of the estimate equals the population parameter.

where no other unbiased estimator of the same parameter has a sampling distribution with smaller variance.

for which the probability of accurate estimates increases as sample size increases.

NEW QUESTION 264
Which of the following investments in debt securities would not normally be classified as long-term?

Available-for-sale securities.

Trading securities.

Held-to-maturity securities.

NEW QUESTION 265
A dormitory on campus houses 200 students. 120 are male, 50 are upper division students, and 40 are upper division male students. A student is selected at random. The probability of selecting a lower division student, given the student is a female, is:

7/8

7/20

2/5

NEW QUESTION 266
You are using a supply and demand diagram to study the market for oranges. What impact would a decrease in the price of oil burned to keep oranges from freezing in the winter have on the market?

It would shift the supply curve for oranges to the right and the demand curve to the left.

It would shift the supply curve for oranges to the left and the demand curve to the left.

It would shift the supply curve for oranges to the right.

NEW QUESTION 267
The following data pertains to the Megatron company: Net income equals $15,000 5,000 shares of common stock issued on January 1 10 percent stock dividend issued on June 1 1000 shares of common stock were repurchased on July 1 1000 shares of 10 percent, par $100 preferred stock each convertible into 8 shares of common were outstanding the whole year How many common shares should be used in computing the company’s basic earnings per share (EPS)?

5500.

4500.

5000.

NEW QUESTION 268
Analysts should go beyond the “bottom line” when analyzing and interpreting financial statements because

nonrecurring items included in net income affect ratio analysis.

calculations of trends and ratios are unreliable.

math errors are sometimes made.

NEW QUESTION 269
Best Cycles has invested in a new project and is considering depreciating it under the sinking fund method. Which of the statements presented below would be CONSISTENT with this depreciation method?
Annual cash flows are projected to be level.

NEW QUESTION 270
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
*
accessible manner.
Keep informed, about any changes of laws.
*
Which Standard of Professional Conduct do these compliance procedures relate to?

Standard IV (A) – Loyalty.

Standard I (A) – Knowledge of the Law.

Standard VI (B) – Priority of Transactions.

NEW QUESTION 271
If nonrecurring charges are really prior year expenses taken too late, then the practice of ignoring nonrecurring charges and focusing on recurring operating income results in

an underestimation of the firm’s assets.

an overestimation of the firm’s earnings trend.

an overestimation of the firm’s assets.

NEW QUESTION 272
A 10-year, 8% coupon bond has a duration of 4.1 and a convexity measure of 168. If the yield on this bond was to decrease by 55 basis points, what would be the estimate of the bond’s percentage price change?

2.25%

2.76%

3.41%

NEW QUESTION 273
The standard deviation measures

diversifiable risk.

non-diversifiable risk.

total risk.

NEW QUESTION 274
The price elasticity of demand for a product tends to be small (less elastic) when

people spend a large fraction of their income on the product.

the good is broadly defined.

there are many good substitutes for the product.

NEW QUESTION 275
The market price of stock X is now $30. An order specifies the stock must be bought once the price drops to $25 or below. This order is likely to be a:

market order.

limit order.

stop order.

NEW QUESTION 276
Which of the following statements is true concerning the use of LIFO in a period of rising prices?

The use of LIFO will lead to a useful working capital number and inventory turnover

The debt-to-equity ratio will be higher than under FIFO

The use of LIFO will lead to lower cash flows

The CFA Level I exam is an essential step for individuals who want to pursue a career in finance and investment. It is a challenging and rigorous exam that requires significant preparation and dedication. However, passing the exam is a significant achievement that demonstrates a strong foundation in finance and investment and a commitment to ethical and professional standards. Successful candidates are well-prepared to pursue a career in finance and investment management and are equipped with the knowledge and skills needed to succeed in a competitive industry.

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