CFA-Level-I Exam Question 216
Which of the following statements is (are) true with respect to the relation between a statistical decision and an economic decision?
I). Both methods of analysis should lead to the same conclusion.
II). Once the null hypothesis has been accepted using statistical methods, the analyst should not override that conclusion.
III When both a statistical analysis and an economic analysis support the same conclusion it would be very imprudent to reject
III). When both a statistical analysis and an economic analysis support the same conclusion, it would be very imprudent to reject that conclusion.
IV). If both methods of analysis lead to different conclusions, the proper course of action would be to run the statistical analysis again using a different confidence interval.
I). Both methods of analysis should lead to the same conclusion.
II). Once the null hypothesis has been accepted using statistical methods, the analyst should not override that conclusion.
III When both a statistical analysis and an economic analysis support the same conclusion it would be very imprudent to reject
III). When both a statistical analysis and an economic analysis support the same conclusion, it would be very imprudent to reject that conclusion.
IV). If both methods of analysis lead to different conclusions, the proper course of action would be to run the statistical analysis again using a different confidence interval.
CFA-Level-I Exam Question 217
The key objective of monetary policy is:
CFA-Level-I Exam Question 218
An auto manufacturer is conducting a market study for a new model. It is afraid that the new car may cannibalize sales from its existing lineup. The sales director thinks that based on past experience, as much as 20% or more of existing buyers would move to the new model. The market research department is setting up the null hypothesis to test the effect of the new model on existing model sales. If u represents the erosion of sales of the current model, which of the following is the most appropriate null hypothesis?
CFA-Level-I Exam Question 219
Management's analysis of the past year is found in
CFA-Level-I Exam Question 220
BWT, Inc. shows the following data in its financial statements at the end of the year. Assume all securities were outstanding at the beginning of the year:
6.125% convertible bond, convertible into 33 shares of common stock. Issue price $1,000, 100
*
bonds outstanding.
6.25% convertible preferred stock, $100 par, 3,710 shares outstanding. Convertible into 3.3
*
shares of common stock, Issue price $100 8%
convertible preferred stock, $100 par, 5,604 shares outstanding. Convertible into 5 common
*
shares, Issue price $80
12,380 warrants are outstanding with an exercise price of $40. Each warrant is convertible into 1
*
share of common.
Average market price of common is $53.00 per share. Common shares outstanding at the
*
beginning of the year were 45,888.
Net Income for the period was $200,000, while the tax rate was 40%.
*
How many new shares had to be issued to facilitate warrant conversion?
6.125% convertible bond, convertible into 33 shares of common stock. Issue price $1,000, 100
*
bonds outstanding.
6.25% convertible preferred stock, $100 par, 3,710 shares outstanding. Convertible into 3.3
*
shares of common stock, Issue price $100 8%
convertible preferred stock, $100 par, 5,604 shares outstanding. Convertible into 5 common
*
shares, Issue price $80
12,380 warrants are outstanding with an exercise price of $40. Each warrant is convertible into 1
*
share of common.
Average market price of common is $53.00 per share. Common shares outstanding at the
*
beginning of the year were 45,888.
Net Income for the period was $200,000, while the tax rate was 40%.
*
How many new shares had to be issued to facilitate warrant conversion?
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