CFA-Level-I Exam Question 506

Price takers face:
  • CFA-Level-I Exam Question 507

    Sampling error, which can be attributed to the fact that only a sample of values is observed, is
  • CFA-Level-I Exam Question 508

    An investor is considering a 20-unit apartment building that is 10 years old and in excellent condition.
    The potential rent for the building is $625 per month per unit and is expected to increase 3% per year.
    Total vacancy and bad debt losses are projected at $6,000 per year, with 2% growth per year. Annual operating expenses include $30,000 for maintenance, $8,000 for property taxes, and $2,500 for property insurance. All operating expenses are expected to increase 2% annually. The property is depreciated using the straight-line method over 27.5 years, with an original depreciable basis of $650,000 (land valued at $50,000). The investor is in the 28% marginal income tax bracket, faces a 20% capital gains tax rate, and desires a minimum after-tax rate of return of 15%.
    The net operating income for year 2 is closest to:
  • CFA-Level-I Exam Question 509

    When the Federal Reserve lowers the federal funds rate, the quantity of money ____ and the supply of loanable funds ____.
  • CFA-Level-I Exam Question 510

    For a two-stock portfolio, what would be the preferred correlation coefficient between the two stocks?