Level Study guides, Class notes & Summaries

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 Formulas question & answers rated A+ already passedPrice 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 ...

CFA Level 1 - 101 Must Knows question with 100% correct answers 2023Addition 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...

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

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( Chartered Financial Analyst )Level I Mock Exam ||2023/2024 Test Bank||Questions & Answers Information about the coupon rates on the various long-term fixed-rate debt issues of a company can most likely be found in the: A notes to the financial statements. B non-current liabilities section of the balance sheet. C Management Discussion and Analysis (MD&A). - ANSWERS A is correct. Information about the coupon rates on the various long-term fixed-rate debt issues can usually be foun...

Provides an extensive but concise summary of all option strategies discussed in the CFA level 3 derivatives section. It also provides on overview of the option Greeks and their determinants etc. This document provides everything you need to pass the derivatives section of the CFA level 3 exam.

CFA Level 1 Formulas question with complete solution graded A+ Already passedPrice 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 / d...

CFA Level 1 - Error Sets question with complete solution graded A+ 20233.Two years from now, a client will receive the first of three annual payments of $20,000 from a small business project. If she can earn 9 percent annually on her investments and plans to retire in six years, how much will the three business project payments be worth at the time of her retirement? - correct answer 7.Suppose you plan to send your daughter to college in three years. You expect her to earn two-thirds of her ...

CFA Level 1 – Economics Exam Questions and Answers (Definite Pass) When demand is less elastic than supply- consumers bear higher or lower burden - Answer-HIGHER When supply is less elastic than demand- consumers bear higher or lower burden - Answer-LOWER, suppliers will bear a higher burden Inelastic means more or less DWL - Answer-Less Three Constraints to Profit Maximization - Answer-TMI 1) Technological, 2) Informational, 3) Market Constraints Technological Efficiency - Answ...