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CFA LEVEL 1 QUESTIONS WITH CORRECT ANSWERS
CFA LEVEL 1 QUESTIONS WITH CORRECT ANSWERS 
 
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 Probab...
- Exam (elaborations)
- • 9 pages •
CFA LEVEL 1 QUESTIONS WITH CORRECT ANSWERS 
 
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 Probab...