Online Access Free CFA.CFA-Level-I.v2022-06-09.q582 Practice Test (Page 26)

CFA-Level-I Exam Question 121

A Treasury bill with 50-days till maturity is quoted with a bank discount rate of 3.50%. The holding period yield for this T-bill if purchased and held to maturity would be closest to

CFA-Level-I Exam Question 122

Which of the following procedures is not applied when measuring the amount of the deferred tax asset or liability?

A.The liability method must be used in measuring the deferred tax asset or deferred tax liability.

B.The tax consequences of temporary differences must be measured by using enacted future tax rates, and the tax consequences of permanent differences are not recognized.

C.The deferred tax asset or liability must be measured at its present value.

CFA-Level-I Exam Question 123

The expected return on the market for next period is 16%. The risk-free rate of return is 6%, and Zebra
Company has a beta that is 20% greater than that for the overall market. The required rate of return for this company is closest to:

A.14%.

B.16%.

C.18%.

CFA-Level-I Exam Question 124

An investment banking department of a brokerage firm often receives material nonpublic information that could have considerable value if used in advising the firm's brokerage clients. In order to conform to the Code and Standards, which of the following is the best policy for the brokerage firm?

A.Establish physical and informational barriers within the firm to prevent the exchange of information between the investment banking and brokerage operations.

B.Monitor the exchange of information between the investment banking department and the brokerage operation.

C.Prohibit purchase recommendations when the investment banking department has access to material nonpublic information but, in view of the fiduciary obligations to clients, allow sale of current holdings.

CFA-Level-I Exam Question 125

Refer to the graph below. Assuming a consumer has $5 to spend, if a soda costs $0.50 and a chocolate bar costs $0.50, the consumer would optimally choose to consume: