CFA

Test Bank Questions, Chapter 3 Test Bank Questions, Chapter 1 1. Which of the following is the market-established worth of a product or a financial instrument? a. Market value b. Fair value c. Cash flow d. Investments e. Book value Answer: a 2. Which of the following best defines personal finance? a. The study of how people minimize risk for a given level of return b. The study of how people maximize return for a given level of risk c. The study of how people develop the ...

A.R.M. 400 CORE EXAM 1 (Complete) Questions and Answers 2023 graded A+ When communicating a decision up the organization's chain of command, consulting with outside experts can help a risk management professional do which one of the following? A. Seek feedback from stakeholders B. Stay focused on the organization's objectives C. Define the organization's risk appetite D. Enhance stakeholders' confidence in the process *ANS* D Which of the following risk management program goals is ...

A Chartered Financial Analyst designation is a professional designation awarded for meeting recognized standards of conduct and competency Gold, gems, art and real estate would be classified as Real assets Another name for stockbrokers is Registered representatives A portfolio Is made of the asset holdings of an investor Underlying the evaluation of an investment is the trade-off between Expected return and risk Most investors exhibit risk averse behaviour...

CFA- Level 1 Ethical & Professional Standards Exams 72 Questions with Answers What are the seven standards of professional conduct? (LOS 1.b) -CORRECT ANSWER I: Professionalism II: Integrity of Capital Markets III: Duties to Clients IV: Duties to Employers V: Investment Analysis, Recommendations, and Actions VI: Conflicts of Interest VII: Responsibilities as a CFA Institute Member or CFA Candidate What are the six components of the Code of Ethics? (LOS 1.b) -CORRECT ANSWER o *Act...

CFA Level 1 - 101 Must Knows 368 Questions with Verified Answers Addition Rule of Probability - CORRECT ANSWER ADDITION: P(A or B) = P(A) + P(B) - P(AB) Roy's Safety First Criterion - CORRECT ANSWER Safety First Ratio = (E(R) - Rₜ) / σ Larger ratio is better If (Rₜ) is risk free rate, then it becomes Sharpe Ratio Sharpe Ratio - CORRECT ANSWER Sharpe Ratio = (E(R) - RFR) / σ Larger ratio is better If (Rt) is higher than RFR, then it becomes Safety First Ratio Centra...

Busi 408 at UNC Chapel Hill's Kenan-Flagler Business School is taught by professor Chip Snively and Melissa Hart. This study guide contains the FULL PACKAGE for everything you need to know, including all class notes, midterm preparation (x2), final exam preparation, and notes from the textbook. It is crucial you do well in this course at it is the prerequisite for most other courses in the Business School, and corporate finance is the basic building block for your future career. Companies and b...

Price Elasticity of Demand Formula Correct Answer (% Change in Quantity Demanded) / (%t Change in Price) Cross Elasticity of Demand Formula Correct Answer (% Change in Quantity Demanded) / (% Change in Price of Substitute or Complement) Income Elasticity of Demand Formula Correct Answer (% Change in Quantity Demanded) / (% Change in Income) Price Elasticity of Supply Formula Correct Answer (% Change in Quantity Supplied) / (% Change in Price) Elasticity of Demand Factors Correct Answ...

Price change based on convexity Correct Answer -duration(change in yield)+1/2(convexity)(change in yield)^2 Effective Duration Correct Answer Required if a bond has embedded options: [(v-)-(v+)]/[2V0(change in curve)] Modified Duration Correct Answer [(v-)-(v+)]/[2V0(change in yield)] Future Value Correct Answer PV(1+(I/Y)^N) PV Correct Answer FV/(1+r)^n PV of perpetuity Correct Answer PMT / discount rate Approximate percentage price change of a bond Correct Answer (-)(modified...

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 based on financial statements is performed by equity investo...

Types of markets Correct Answer Factor markets = markets for factors of production (land, labor, capital), firms purchase services of factors of production (labor) from households and transform those services into intermediate and final goods and services. Goods markets = markets for the output produced by firms (legal and medical services) using the services of factors of production, households and firms act as buyers (intermediate goods and services use inputs to produce other goods while f...