CFA-Level-I Exam Question 61
Jorgensen Products has just issued 25,000,000 in 4.50% annual coupon bonds at a market yield of
4 .80%. The bonds have a maturity of 8 years. What adjustments would an analyst make to the CFO at the end of the first year?
4 .80%. The bonds have a maturity of 8 years. What adjustments would an analyst make to the CFO at the end of the first year?
CFA-Level-I Exam Question 62
You invest $100 in a risky asset with an expected rate of return of 12% and a standard deviation of
1 5% and a T-bill with a rate of return of 5%. What percentages of your money must be invested in the risk-free asset and the risky asset, respectively, to form a portfolio with a standard deviation of 6%?
1 5% and a T-bill with a rate of return of 5%. What percentages of your money must be invested in the risk-free asset and the risky asset, respectively, to form a portfolio with a standard deviation of 6%?
CFA-Level-I Exam Question 63
A retail client of yours is interested in knowing how low an annual return a major stock index might have, as a once in a twenty year event. The index in question has had an annual return of 11% with a standard deviation of 22%. You believe these returns have been normally distributed. What is the low return that could be expected once in twenty years?
CFA-Level-I Exam Question 64
An analyst gathers the following information:
Years to Maturity Spot Rate
15.00%
26.00%
36.50%
Based on the data above, the one-year implied forward rate two years from now is closest to:
Years to Maturity Spot Rate
15.00%
26.00%
36.50%
Based on the data above, the one-year implied forward rate two years from now is closest to:
CFA-Level-I Exam Question 65
Company B is considering a capital investment project. The appropriate discount rate for the project is WACC = 5.25%. The project has the following NPV and IRR: NPV = - $4,250,000 IRR = 3.01%.
Which of the following statements is true?
I). The project should be accepted since IRR WACC
II). The project should be accepted since NPV 0.
Which of the following statements is true?
I). The project should be accepted since IRR WACC
II). The project should be accepted since NPV 0.