Online Access Free CFA-Level-I Exam Questions

A survey of 144 retail stores revealed that a particular brand and model of a VCR retails for $375 with a standard deviation of $20. If 90% and 95% confidence intervals are developed to estimate the true cost of the VCR, what similarities would they have?

• A.Point estimates
• B.Standard errors
• C.Both point estimates and standard errors

Technicians do NOT believe:

• A.Security price movements occur after fundamental developments unfold.
• B.Trends and patterns are somewhat predictable.
• C.Fundamental analysis is a key input in determining security prices.

The investment objectives of an investor should be expressed in terms of

• A.Risk and expected return.
• B.Investment horizon and liquidity concerns.
• C.Legal, as well as tax issues.

Which of the following is a misconception about beta?

• A.Beta is the relevant measure of risk in the CAPM and is equivalent to unsystematic risk.
• B.Beta is defined as the covariance between the security or portfolio and the market portfolio divided by the variance of the market portfolio.
• C.Beta can be viewed as a standard measure of systematic risk.

The price of a 15-year, semi-annual pay, 8% coupon bond increases by 9.53% if the bond's yield to maturity decreases by 100 basis points from 7% to 6%. The percentage change in the bond's price caused by a decrease in yield to maturity from 10% to 9% is:

• A.7.89%
• B.8.54%
• C.8.21%