2023 Latest 100% Exam Passing Ratio – CFA-Level-I Dumps PDF [Q1048-Q1067]

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2023 Latest 100% Exam Passing Ratio – CFA-Level-I Dumps PDF

Pass Exam With Full Sureness – CFA-Level-I Dumps with 2200 Questions

CFA CFA-Level-I exam is designed to be challenging, and candidates need to be well-prepared to succeed. The CFA Institute recommends that candidates spend at least 300 hours studying for the exam. This involves understanding the concepts, formulas, and applications of the various financial concepts covered in the exam. Candidates can study on their own or take advantage of the various study resources offered by the CFA Institute, like the official curriculum, study materials, practice exams, and review courses.

QUESTION 1048
The dividend discount model values a share of stock as

the sum of all future cash flows adjusted for time value of money.

the sum of all expected future cash flows, where these cash flows are adjusted for risk and time value of money.

the sum of all expected future dividend payments.

The value of any asset is the present value of its expected future cash flows discounted at the appropriate rate of return.

QUESTION 1049
The joint probability of three events is given as 35%. Their individual probabilities are 50%, 60%, and
8 0%. What should be their joint probability if they are independent?

35%

24%

63.3%

For the events to be independent, their joint probability should equal the product of their individual probabilities = 0.50 x 0.60 x 0.80 = 0.24, or 24%. Since this is different from 35%, the events are not independent.

QUESTION 1050
The marginal revenue product will shift to the right if

the price of the product falls.

the productivity of the resource decreases.

the quantity of other inputs working with the input increases.

An increase in the use of other inputs will increase the productivity of this input, e.g. labor which has more or better capital to work with. The marginal product of the input increases, and consequently so does the marginal revenue product. Decreased product price or decreased productivity will decrease marginal revenue product for any unit of input and shift the marginal revenue product curve to the left.

QUESTION 1051
A researcher randomly samples 100 citizens of Florida and finds that 95 of the citizens are literate.
The researcher then finds a 90% confidence interval. Which of the following is false?

the researcher is 90% sure that the percentage of literate citizens is between 91.4% and 98.6%

the sample proportion p’ is 0.95 and the margin of error is 3.6%

the confidence interval procedure is invalid because Np’ and N(1 – p’) are not both greater than 5

The procedure used for confidence intervals assumes that Np’ > 5 and that N(1 -p’) > 5.
Because this is not the case, 100(1 – 0.95) = 5, the researcher cannot conclude with 90% confidence that the percentage of Florida citizens that are literate is between 91.4% and 98.6%.

QUESTION 1052
If the Laspeyres index is 120, the Paasche index is 115, then the Fisher index is:

117.5.

117.47.

235.

It is the geometric mean of the two indices.

QUESTION 1053
An industry experiencing slowing growth, intense competition and declining profitability is best characterized as being in the _____ stage.

growth

shakeout

mature

Companies should focus on reducing their cost structure and building brand loyalty.

QUESTION 1054
An Indian software engineer works for a computer manufacturer in San Jose. He makes $60,000 a year and sends $10,000 to his family in India each year. The amount should be counted towards US GDP is:

60,000.

50,000.

10,000.

$60,000 since GDP counts goods and services produced within the geographic borders of the country. The fact that he sends $10,000 to India is another matter (Balance of Trade).

QUESTION 1055
__________ are included in the bond indenture to protect bondholders from certain actions by the company.

Indentures

Debentures

Covenants

QUESTION 1056
A mutual fund with an offering price of $7.76 and a 3% front-end load has a net asset value of:

$6.95

$7.53

$7.99

NAV = Offering price x (1 – Load) = $7.76 x (1 – 0.03) = $7.53

QUESTION 1057
Consider a bond that pays 10% semiannually and has 6 years to maturity. The market requires an interest rate of 12% on bonds of this risk. What is this bond’s price?

$91.62

$91.77

$95.08

N=12, I/Y=6, PMT=5, FV=100, PV=?=91.62

QUESTION 1058
External (informational) efficiency means that:

many buyers and sellers are aware of the trading activity of the market

the market price reflects all available information about a security

the price information generated in the market is broadcast widely

Although all of the characteristics above would be nice and are associated with modern well-functioning markets, the only aspect that is related to external efficiency is whether or not the market price reflects the available information. Ask the question, “How is what we know about a security related to the price of that security?”

QUESTION 1059
Comparing with FIFO, LIFO results in (during periods of rising prices)

higher taxes and lower cash flows.

lower taxes and higher cash flows.

lower taxes and lower cash flows.

QUESTION 1060
You have a nest egg of $750. In order for your money to grow to $1,343.10, it must be invested at 6% for how many years?

Years = Log(1343.10/750)/Log(1.06) = 10.

QUESTION 1061
Swimsuit Shop uses FIFO inventory method. During a time of rising prices and constant inventory level
(in terms of quantity), Swimsuit Shop would experience

higher taxes.

higher cash flows.

higher cost of goods sold (COGS) and lower net income.

The sequence is: lower COGS –> higher net income –> higher taxes –> lower cash flows.

QUESTION 1062
Which of the following is not one of the eight main sections of GIPS?

Verification.

Composition construction.

Calculation methodology.

Verification is not part of the eight sections, although strongly recommended.

QUESTION 1063
Which form of efficient market hypothesis asserts that security prices adjust rapidly to the release of all public information?

the semi-strong form

the strong form

the weak form

QUESTION 1064
Which of the following statements is false with respect to the price volatility of a bond arising out of changes in the yield curve?

Government bonds will always be less volatile than corporate bonds.

Higher coupon paying bonds will always be less volatile than low coupon paying bonds, holding everything else constant.

For a one basis point change in yields, a bond will be less volatile at higher levels of yield than it would be at lower levels of yield.

When it comes to interest rate risk, not even government bonds are immune. In fact, a long term government bond’s price will be a lot more volatile than a short term corporate bond’s price. This is despite the fact that corporate bonds have a credit risk.

QUESTION 1065
An analyst may be called upon to perform a financial analysis for different reasons, including:
I). The evaluation of a subsidiary’s performance relative to other business units.
II). The assessment of credit risk.
III). The performance of due diligence in an acquisition.
IV). The valuation of equity securities.

I, II, III and IV.

II, III and IV.

I, II and IV.

QUESTION 1066
Changes in the size of the federal deficit or surplus are often used to gauge whether fiscal policy is adding additional demand stimulus or imposing additional demand restraint. If we’ve noticed recently that the federal budget is shifting toward a deficit, we can conclude:

An expansionary fiscal policy is being implemented.

An expansionary monetary policy is being implemented.

We can conclude nothing about discretionary fiscal policy.

Changes in the size of the deficit may arise from two different sources. They may reflect the state of the economy: during a recession the budget will shift to a deficit one even if there is no change in fiscal policy.They may reflect discretionary fiscal policy (expansionary or restrictive).

QUESTION 1067
Stock index mutual fund returns _________ the market index _________.

track; and equal it consistently.

track; but do not equal it consistently.

do not track; but equal it consistently.

Stock index funds are constructed to duplicate the performance of the underlying index.
However, because the funds have management fees and other expenses, their performance is generally lower than that of the index.

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