Study guides, Class notes & Summaries

CFA Level 2 Exam Questions and Answers (Graded A+) 2nd the cross-rate bids (offers) posted by a dealer must be lower (higher) than the implied cross-rate offers (bids) available in the interbank market. Recall that given exchange rate quotes for the currency pairs A/B and C/B, we can back out the implied cross rate of A/C, and that this implied cross-rate A/C must be consistent with the A/B and C/B rates. This again reflects the basic principle of arbitrage: If identical financial products ar...

CFA Level 1 Questions | Questions with 100% Correct Answers | Updated & Verified

CFA level 1 Exam Questions with Correct Answers Payables turnover = COGS/avg payables = 1969/(361+346)/2 = 5.57 Days in payables = 365/payables turnover = 65.6 CCC = DOH +DSO - Days in Pay = 49.4+39.4-65.6=23.2 - Answer-find the cash conversion cycle sales COGS Interest 123 110 Cash 108 105 receivables 318 286 inventories 248 285 Payables 361 346 notes payable 50 99 the deferred tax liability equals the difference between the value for accounting and tax purposes times t...

Private value auctions - Answer- Value is subjective and different to each bidder Private value auctions - Answer- Value is subjective and different to each bidder Ascending price (English) auction - Answer- Bidders can bid amounts greater than the previous bid, and the bidder that first offers the highest bid wins the item and pays the amount Ascending price (English) auction - Answer- Bidders can bid amounts greater than the previous bid, and the bidder that first offers the highest b...

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 ...

CFA Assessment Test Questions and Answers The records also contained an account titled Retained Earnings. Based on this information the balance of the retained earnings account must be - Answer-$700 The following accounting equation represents the financial position of Qualtro Company. Based on this equation, Qualtro - Answer-Can pay a $300 cash dividend The following accounting equation represents the financial position of Bentley Company. Based on this equation, Bentley - ...

CFA Level 1 Formulas Exam Questions with Correct Answers 95% confidence interval - Answer-+/- 1.96 SDs 99% confidence interval - Answer-+/- 2.58 SDs Z score - Answer-(x-mean)/SD Roy's safety first ratio - Answer-(E(Rp) - Rtarget)/SD Mean sampling error - Answer-mean - miu Standard error - Answer-SD/ sqrt (n) Confidence interval - Answer-x+/- z*(SD/sqrt(n)) Type 1 error - Answer-rejection of null hypothesis when it is actually true Type 2 error - Answer-Accepting the n...

CFA Level 1 Exam Questions with Complete Solutions A standard normal probability distribution has a mean of zero, so subtracting the mean from a normal random variable before dividing by its standard deviation is necessary to produce a standard normal probability distribution. An analyst wants to construct a hypothesis test to determine whether the mean weekly return on a stock is positive. The null hypothesis for this test should be that the mean return is: A) Greater than zero B) Les...

CFA 1 Exam Questions with Correct Answers Answers Latest Cobb, Inc., has hired Jude Kasten, CFA, to manage its pension fund. The client(s) to whom Kasten owes a duty of loyalty are: A. Cobb's management. B. the shareholders of Cobb, Inc. C. the beneficiaries of the pension fund. - Answer-C Standard III(A) Loyalty, Prudence, and Care specifies that for the manager of a pension or trust, the duty ofloyalty is owed to the beneficiaries, not to the individuals who hired the manager. Whi...