CFA一级历年模拟考试(2015-2019)：2017-level-I-mock-exam-morning-answers-removed

2017LevelIMockExam:MorningSessionThemorningsessionofthe2017LevelICharteredFinancialAnalyst(CFA®)MockExaminationhas120questions.Tosimulatethedayexperience,candidatesareadvisedallocateanaverageofminutesperquestionforatotalof180minutes(3hours)forthissessiontheexam.TopicMinutes1-18EthicalandProfessionalStandardsQuantitativeMethodsEconomics272118361218919-3233-4445-6869-7677-8889-9495-106107-110111-120FinancialStatementAnalysisCorporateFinanceEquityInvestmentsDerivativeInvestmentsFixedIncomeInvestmentsAlternativeInvestmentsPortfolioManagementTotal:18615180ofisCFAexamforpreparationareinorbythantoanyand/orfor©CopyrightedbyInstitute.Allrightsreserved.1.IncaseswhereapplicablelocallawsgoverningcalculationandpresentationofinvestmentperformanceconflictwithGIPSstandards,firmsare:A.requiredcomplywithregulationsandmakedisclosureoftheconflictclaimGIPScompliance.B.unabletoclaimGIPScomplianceincaseswherelocalregulationsprohibitaccuratecalculation.C.requiredcalculateandmaintainsetsofperformancedatainordertoclaimGIPScompliance.Answer=AIncaseswhereapplicablelocallawsgoverningcalculationandpresentationofinvestmentperformanceconflictwithGIPSstandards,firmsmustcomplywithlocalregulationsanddisclosetheconflictinthecompliantpresentation.CFALevelI"GlobalInvestmentPerformanceStandards(GIPS),"InstituteSection4.A.222.RossNelson,CFA,managesaccountsforhigh-net-worthclients,includinghisownfamily'saccount.Hehasnobeneficialownershipinhisfamily'saccount.BecauseNelsonisconcernedabouttheappearanceofimproperbehaviorinmanaginghisfamily'saccount,whenhispurchasesablockofsecurities,Nelsonallocateshisfamily'saccountonlythosesharesremainafterhisotherclientaccountshavetheirordersfilled.Theformanaginghisfamily'saccountisbasedonhisfirm'snormalfeestructure.AccordingtheStandardsofPracticeHandbook,bestcourseofactionwithregardmanagementofhisfamily'saccountwouldbeto:A.treattheaccountlikeotheremployeeaccountsoffirm.B.treattheaccountlikeotherclientaccounts.C.removehimselfdirectinvolvementbytransferringresponsibilityforaccountanotherinvestmentprofessionalinfirm.Answer=BNelsonhasbreachedhisdutyhisfamilybytreatingthemdifferentlyotherclients.Theyareentitledtothetreatmentasanyotherclientofthefirm.Nelsonshouldtreathisfamily'saccountotherclientaccountasstatedinStandardIII(B)relatedFairDealingandStandardVI(B)relatedtoPriorityofTransactions.CFALevelI"GuidanceforStandardsI-VII,"CFAInstituteStandardIII(B),StandardofisCFAexamforpreparationareinorbythantoanyand/orfor©CopyrightedbyInstitute.Allrightsreserved.3.AlexanderNewton,CFA,isthechiefcomplianceofficerforMillsInvestmentLimited.Newtoninstitutesanewpolicyrequiringtheproratadistributionofnewsecurityissuesallestablisheddiscretionaryaccountsforwhichtheissuesappropriate.policyprovidesfortheexclusionofnewlyestablisheddiscretionaryaccountsfromdistributionuntiltheyhavereachedtheirone-monthanniversarydate.Thispolicyisdisclosedallexistingandpotentialclients.DidNewtonmostlikelyviolateanyCFAInstituteStandardsofProfessionalConduct?A.No,becausepolicyhasbeenadequatelydisclosedtoallexistingandpotentialclientsB.YesC.No,becauseallocationpolicyinequitableunderthestandardsAnswer=BUnderStandardIII(B)-FairDealing,membersandcandidatesshoulddiscloseclientsandprospectiveclientstheyselectaccountstoparticipateinandtheydeterminetheamountofsecuritieseachaccountwillbuyorsell.Tradeallocationproceduresmustbeandequitable,anddisclosureofinequitableallocationmethodsdoesnotrelievememberorcandidatethisobligation.Alldiscretionaryaccountsshouldbetreatedinthesamemanner.Treatingneweraccountsdifferentlywouldbeconsideredinequitableregardlessofwhetherthispolicyisdisclosed.CFALevelI"GuidanceforStandardsI-VII,"CFAInstituteStandardIII(B)4.AccordingGIPSstandardsaverificationreportconfirmsalloffollowingexceptwhether:A.specificcompositepresentationsaccurate.B.processesandproceduresaredesignedtocalculatepresentcompliantperformanceresults.C.afirmhascompliedwithfirm-widecompositeconstructionrequirements.Answer=AGIPSverificationdoesensuretheaccuracyofspecificcompositepresentations.CFALevelI“IntroductiontotheGlobalInvestmentPerformanceStandards(GIPS),”CFAInstituteSectionV–VerificationofisCFAexamforpreparationareinorbythantoanyand/orfor©CopyrightedbyInstitute.Allrightsreserved.5.JustinBlake,CFA,aretiredportfoliomanager,owns20,000sharesofasmallpubliccompanythathewouldliketosellheisworriedaboutcompany'sprospects.Hemessagesonseveralinternetbulletinboards.Themessagesread,"Thisstockgoinguponcethependingpatentsreleased,soistimebuy.stockabuyatanythingbelow$3.Ihavedonesomeresearchontheseguys."AccordingtheStandardsofPracticeHandbook,BlakemostlikelyviolatedandStandardsassociatedwith:A.IntegrityofCapitalMarkets,butnotConflictsofInterest.B.neitherIntegrityofCapitalMarketsConflictsofInterest.C.IntegrityofCapitalMarkets,andConflictsofInterest.Answer=ABlakeviolatedStandardregardingtheIntegrityCapitalMarketsbyengaginginapracticethatislikelyartificiallyinflatetradingvolume.CFALevelI"GuidanceforStandardsI-VII,"CFAInstituteStandardII(B),Standard6.MirandaGrafton,CFA,purchasedalargeblockofstockatvaryingpricesduringtradingsession.Thestockrealizedasignificantgaininvaluebeforethecloseofthetradingday,Graftonreviewedpurchasepricesdeterminewhatshouldbeassignedeachspecificaccount.AccordingtheStandardsofPracticeHandbook,Grafton'sleastappropriateactionisallocatetheexecutionprices:A.acrosstheparticipatingclientaccountsatthesameexecutionprice.B.acrosstheparticipatingclientaccountsrataonthebasisofaccountsize.C.onafirst-in,first-outbasiswithconsiderationofbundlingordersforefficiency.Answer=BAccordingStandardIIIbestpracticesincludeallocatingprorataonthebasisofordersize,accountsize.Allclientsparticipatingintheblocktradeshouldreceivesameexecutionpriceandbechargedsamecommission.CFALevelI"GuidanceforStandardsI-VII,"CFAInstituteStandardIII(B)ofisCFAexamforpreparationareinorbythantoanyand/orfor©CopyrightedbyInstitute.Allrightsreserved.7.WhichofthefollowingleastlikelyreflectstwoprimaryprinciplesofCFAInstituteRulesofProcedureforProfessionalConduct?A.FairprocessmemberandcandidateB.PublicdisclosureofdisciplinarysanctionsC.ConfidentialityofproceedingsAnswer=BThetwoprinciplesoftheRulesofProcedureforProfessionalConductconfidentialityofproceedingsandfairprocessthememberorcandidate.CFALevelI"RulesofProcedureforProfessionalConduct"8.Severalyearsago,LeoPeek,CFA,co-foundedaninvestmentclub.clubisinvestedbuthasnotactivelytradedaccountforleastayearanddoesplantoresumeactivetradingoftheaccount.Peek'semployerrequiresanannualdisclosureofemployeestockownership.Peekdisclosesallofhispersonaltradingaccountsbutdoesnotdisclosehisholdingsintheinvestmentclub.Peek'sactionsareleastlikelybeaviolationofwhichoftheCFAInstituteStandardsofProfessionalConduct?A.MisrepresentationB.TransactionpriorityC.ConflictsofinterestAnswer=BThereisnoindicationthattheinvestmentclubistradingaheadofclients.VI(B).CFALevelI"GuidanceforStandardsI-VII,"CFAInstituteStandardI(C),StandardVI(A),StandardVI(B)ofisCFAexamforpreparationareinorbythantoanyand/orfor©CopyrightedbyInstitute.Allrightsreserved.9.MadelineSmith,CFA,recentlypromotedseniorportfoliomanager.Inhernewposition,Smithisrequiredsupervisethreeportfoliomanagers.Smithasksforacopyofherfirm'swrittensupervisorypoliciesandproceduresbutisadvisednosuchpoliciesrequiredbyregulatorystandardsinthecountrywhereSmithworks.AccordingtoStandardsofPracticeHandbook,Smith'smostappropriatecourseofactionwouldbeto:A.requirehertoadoptCFAInstituteCodeofandStandardsofProfessionalConduct.B.declineacceptsupervisoryresponsibilityuntilheradoptsproceduresallowadequatelyexercisesuchresponsibility.C.requiretheemployeesshesupervisesadopttheInstituteCodeofEthicsStandardsofProfessionalConduct.Answer=BAccordingguidanceforStandard(IV(C),ifamembercannotfulfillsupervisoryresponsibilitiesbecauseofabsenceofacompliancesystemorbecauseofaninadequatecompliancesystem,membershoulddeclineinwritingacceptsupervisoryresponsibilityuntiltheadoptsreasonableprocedurestoallowthememberadequatelyexercisesuchresponsibility.CFALevelI"GuidanceforStandardsI-VII,"CFAInstituteStandardIV(C)10.WhenJeffersonPiedmont,CFA,joinedBranchInvesting,BranchbeganusingaquantitativestockselectionmodelPiedmonthaddevelopedonhisownpersonaltimepriorhisemploymentwithBranch.OneyearlaterwhenPiedmontleftBranchInvesting,hefoundtheoriginalcopythemodelhehaddevelopedinafilehisandpresentedittohisemployer,whichimmediatelybeganusingmodel.AccordingtheStandardsofPracticeHandbook,didPiedmontmostlikelyviolateanyCFAInstituteStandardsofProfessionalConduct?A.NoB.Yes,becausemisappropriatedpropertybelongingtoBranchC.Yes,becausefailedtoinformhisemployerthemodelwassameonebyhispreviousemployerAnswer=AAlthoughdepartingemployeesmaytakeemployerpropertywhendeparting,astheguidanceforStandardIV(A)–Loyaltyoutlines,themodelPiedmontpresentedhisemployerBranch'sproperty.ItwascreatedPiedmontpriortohisemploymentwithBranch.ThemodelnotcreatedforBranchincourseofhisemployment,eventhoughitwasadoptedbyBranch.ofisCFAexamforpreparationareinorbythantoanyand/orfor©CopyrightedbyInstitute.Allrightsreserved.CFALevelI"GuidanceforStandardsI-VII,"CFAInstituteStandardIV(A)11.ReikoKimisaki,CFA,isaninvestmentadviserforanationalsocialsecurityfundinafrontiermarketwithaverylimitedandilliquidcapitalmarket.Thelaborforceisyoungandhasinvestmenttimehorizonof25toyears.Kimisakibeenaskedsuggestwaysincreaseinvestmentreturnoftheoverallportfolio.Aftercarefulassessmentofthefund'spreviousinvestmenthistory,andavailableassetclasses,sheconsidersinvestmentprivateequity.WhatKimisaki'slowestpriorityavoidCodeandStandardsviolationspriormakingthisinvestmentrecommendation?A.Assessrisktoleranceofthefund.B.Analyzetheexpectedreturnsofprivateequityinthemarket.C.Determinewhethertheinvestmentstatementallowsforalternativeinvestments.Answer=BPriorundertakingwithregardexpectedreturns,anadvisermustdeterminethesuitabilityofaninvestmentclass,includingwhetherfitswithintheclient'srisktoleranceandwhetheritisanallowableassetclassasperclient'sinvestmentpolicystatement.Onlyafterthesefactorshavebeendeterminedshouldproceed,ifappropriate,toanalyzeexpectedreturnstodetermineaparticularinvestmentrecommendation.CFALevelI"GuidanceforStandardsI-VII,"CFAInstituteStandardIII(C)12.RebeccaWongisenrolledtaketheLevelICFAexam.HerfriendWilliamLeungpurchasedLevelIstudymaterialsfromawell-knownCFAreviewprogrampreviousyear.Leungmadeaphotocopyofthepreviousyear'scopyrightedmaterialsandsoldWongherstudy.WhomostlikelyviolatedInstituteCodeofEthicsanyStandardsofProfessionalConduct?A.Neitherviolated.B.Bothviolated.C.OnlyLeungviolated.Answer=BofisCFAexamforpreparationareinorbythantoanyand/orfor©CopyrightedbyInstitute.Allrightsreserved.Photocopyingcopyrightedmaterial,regardlessofyearofpublication,isaviolationofStandardI(A)becausecopyrightedmaterialsprotectedlaw.Candidatesandmembersmustcomplywithallapplicablelaws,rules,andregulationsandmustnotknowinglyparticipateorassistinaviolationoflaws.CFALevelI"GuidanceforStandardsI-VII,"CFAInstituteStandardI(A)13.AccordingGlobalInvestmentPerformanceStandards(GIPS),firmsmustallofthefollowingexcept:A.provideinvestorswithacomprehensiveviewoftheirperformanceonlyintermsofreturns.B.adherecertaincalculationmethodologiesandmakespecificdisclosuresalongwiththeirperformance.C.complywithallrequirementsoftheGIPSstandards,asupdates,guidancestatements,andclarifications.Answer=AFirmsmustprovideinvestorswithacomprehensiveviewoftheirperformanceintermsofriskandreturns,justreturns.CFALevelI“TheGIPSStandards,”CFAInstituteSection:Overview14.ForfirmsclaimcompliancewiththeGIPSstandardstheymostlikelymust:A.increasetheconsistencyqualityofthefirm'scompliantpresentations.B.takeresponsibilityfortheirclaimofcomplianceandmaintainingthatcompliance.C.hireanindependentthirdpartytestasampleoftheircomposites.Answer=BFirmsclaimingcompliancewiththeGIPSstandardsresponsiblefortheirclaimofcomplianceandformaintainingthatcompliance.Thatfirmsself-regulatetheirclaimofcompliance.CFALevelI"IntroductionGlobalInvestmentPerformanceStandards(GIPS),"CFAInstituteSection:V.VerificationofisCFAexamforpreparationareinorbythantoanyand/orfor©CopyrightedbyInstitute.Allrightsreserved.15.Whilewaitinginthebusinessclassloungebeforeboardinganairplane,BeccaMsafari,CFA,anequityanalyst,overhearsaconversationbyagroupofseniormanagers,includingmembersoftheboard,fromalargepubliclylistedbank.Themanagersdiscussstaffchangesnecessaryaccommodatetheirregionalexpansionplans.Msafarihearsseveralstaffnamesmentioned.UnderwhatcircumstancescouldMsafarimostlikelythisinformationwhenmakinganinvestmentrecommendationclients?cantheinformation:A.undernocircumstances.B.ifshedoesbreachtheconfidentialityofofthestaff.C.ifthediscussedchangesunlikelyaffectinvestorperceptionofthebank.Answer=CTocomplywiththeCodeStandards,amemberorcandidatecannotmaterialnonpublicinformationwhenmakinginvestmentrecommendations.Theinformationoverheardwouldconsideredmaterialonlyifanypublicannouncementofthestaffremovalwouldbeunlikelytomovethesharepriceofthenorwouldtheregionalexpansionsubstantiallythevalueofthebank.CFALevelI"GuidanceforStandardsI-VII,"CFAInstituteStandardII(A)16.FundamentalAssetManagersclaimscompliancewiththeCFAInstituteGlobalInvestmentPerformanceStandards(GIPS)andmanagesbothdiscretionaryandnon-discretionaryaccounts.WhenconstructingasinglecompositeforFundamental,JumaDzuyaincludesalldiscretionary,fee-payingaccountswithbothvalueandgrowthstrategies.DoesthecompositeconstructedDzuyamostlikelymeetcriteriaoftheGIPSstandards?A.No,becauseofnon-similarinvestmentstrategiesB.No,becausenon-discretionaryaccountsareincludedC.YesAnswer=AAcompositemustincludeallactualfee-paying,discretionaryportfoliosmanagedinaccordancewiththesameinvestmentmandate,objective,orstrategy(StandardIV–Composites).Byincludingboththevalueandgrowthportfolios,thecompositeismadeupofportfolioswithdifferentinvestmentmandatesorstrategies.ofisCFAexamforpreparationareinorbythantoanyand/orfor©CopyrightedbyInstitute.Allrightsreserved.CFALevelI"IntroductionGlobalInvestmentPerformanceStandards(GIPS)"Composites17.CharlieMancini,CFA,istheManagingDirectorforBusinessDevelopmentatSVFinancial,(SVF),alargeU.S.-basedmutualorganization.Mancinibeenunderpressurerecentlytoincreaserevenues.InorderbusinessafundmanagerbasedinAsia,Mancinirecentlyapprovedflexibletermsforthefund'sclientagreement.allowforzonedifferences,theagreementpermitsthehedgefundtradeinallofSVF'smutualfundssixhoursaftercloseofU.S.markets,whichisprohibitedbyU.S.regulators.DidManciniviolateanyCFAInstituteStandardsofProfessionalConduct?A.NoB.Yes,withregardFairDealingandMaterialNonpublicInformationC.Yes,withregardFairDealingAnswer=BClientsshouldbetreatedfairlyandimpartiallyaccordingtoStandardIII(B).Inaddition,theflexibletradingtermsallowthefundmanagertoenrichitselfandaviolationofStandardII(A),whichconcernstradingonmaterialnonpublicinformation.Thissituationisaconflictofinterest,andthusaviolationofStandardVI(A)-DisclosureofConflicts.CFALevelI"GuidanceforStandardsI-VII,"CFAInstituteStandardII(A),StandardIII(B),StandardVI(A)18.InordertoachievecompliancewithGIPSStandards,itisrecommendedthatA.definethefirmbyincludingallgeographicalofficesoperatingunderthesamename.B.provideexistingclientsacompliantpresentationapplicabletheirportfolio,aminimumofabi-annualbasis.C.adoptthebroadest,mostmeaningfuldefinitionoffirm.Answer=CTheFundamentalsofCompliancerecommendfirmsshouldadoptthebroadest,mostmeaningfuldefinitionofthefirm.ofisCFAexamforpreparationareinorbythantoanyand/orfor©CopyrightedbyInstitute.Allrightsreserved.CFALevelI"TheGIPSStandards,"CFAInstituteSection:FundamentalsofCompliance–Requirements&Recommendations19.Thediscrepancybetweenastatisticallysignificantresultandaneconomicallymeaningfulresultisleastlikelytheresultof:A.transactioncosts.B.samplingerrors.C.risktolerance.Answer=BSamplingerrorswillresultstatisticalerror.Astatisticallysignificantresultmightnotbeeconomicallymeaningfulafterananalystaccountsfortherisk,transactioncosts,andapplicabletaxes.CFALevelI"HypothesisTesting,"RichardA.DeFusco,DennisW.McLeavey,JeraldE.Pinto,andDavidE.RunkleSection220.Asmall-capgrowthfund'smonthlyreturnsforthemonthshavebeenconsistentlyoutperformingitsbenchmark.Ananalystisdeterminingwhetherthestandarddeviationofmonthlyreturnsisgreaterthan6%.Whichoffollowingbestdescribesthehypothesistobetested?A.B.C.Answer=CThisisaone-tailedhypothesistestingwitha"greaterthan"alternativehypothesis.Asquaredstandarddeviationisbeingusedobtainatestofvariance.Thehypothesesareversus.CFALevelI"HypothesisTesting,"RichardA.DeFusco,DennisW.McLeavey,JeraldE.Pinto,andDavidE.RunkleSection2ofisCFAexamforpreparationareinorbythantoanyand/orfor©CopyrightedbyInstitute.Allrightsreserved.21.Whentestingahypothesis,thepowerofatestdescribedasthe:A.probabilityofrejectinganullhypothesis.B.probabilityofcorrectlyrejectingthenullhypothesis.C.sameaslevelofsignificancethetest.Answer=BThepowerofatestistheprobabilityofcorrectlyrejectingthenullhypothesis—thatis,probabilityofrejectingthenullwhenitisfalse.CFALevelI"HypothesisTesting,"RichardA.DeFusco,DennisW.McLeavey,JeraldE.Pinto,andDavidE.RunkleSection222.AcompanyhasanunsecuredlineofcreditandneedstomaintainEBIT-to-interestcoverageratiogreaterthan2.0.ItsEBITisestimatedtobebetween$36millionand$48million,withallvaluesequallylikely.Iftheforecastedinterestchargeforyearis$20million,probabilitythatEBIT/interestwillmore2.0isclosestto:A.33.3%.B.66.7%.C.61.5%.Answer=BTheEBIT-to-interestratioisequalwhentheEBITis$40million.Givenvaluesbetween$36millionand$48millionareequallylikely,theprobabilityoftheratiobeingequaltoorlessthan2.0is33.3%(=[$40million–$36million]/[$48million–$36million]).Consequently,probabilityoftheratiobeinggreater2.0is66.7%(i.e.,1–Probabilityoftheratioequaltoorlessthan2.0).CFALevelI"CommonProbabilityDistributions,"RichardA.DeFusco,DennisW.McLeavey,JeraldE.Pinto,andDavidE.RunkleSection3.123.Ifthestatedannualinterestrateis9%andthefrequencyofcompoundingisdaily,theeffectiveannualrate(EAR)isclosestto:A.9.00%.B.9.86%.C.9.42%.ofisCFAexamforpreparationareinorbythantoanyand/orfor©CopyrightedbyInstitute.Allrightsreserved.Answer=CEAR=(1+periodicinterestrate)m–1=+(0.09/365)]–1=0.094162,to9.42%.CFALevelI"TheValueofMoney,"RichardA.DeFusco,DennisW.McLeavey,JeraldE.Pinto,andDavidE.RunkleSections3.2,3.324.Afinancialcontractofferspay€1,200permonthforfiveyearswiththefirstpaymentmadeimmediately.Assuminganannualdiscountrateof6.5%,compoundedmonthlypresentvaluethecontractisclosestto:A.€61,663.B.€61,330.C.€63,731.Answer=AUsingafinancialcalculator:N=60;thediscountrate,=(6.5%/12)=0.54166667;PMT=€1,200;Futurevalue=€0;Mode=Begin;Calculatepresentvalue(PV):PV=€61,662.62.Alternatively:Treattheasanordinaryannuityof59periodsandaddthecurrentvalueof€1,200thederivedanswer.Usingafinancialcalculator:N=59;thediscountrate,=(6.5%/12)=0.54166667;PMT=€1,200;value=€0;Mode=End;CalculatePV:PV=€60,462.62;TotalPV=€1,200+€60,462.62=€61,662.62.CFALevelI"TheValueofMoney,"RichardA.DeFusco,DennisW.McLeavey,JeraldE.Pinto,andDavidE.RunkleSection6.1ofisCFAexamforpreparationareinorbythantoanyand/orfor©CopyrightedbyInstitute.Allrightsreserved.25.Usefollowingvaluesfromastudent'st-distributiontoestablisha95%confidenceintervalforthepopulationmeangivenasamplesizeof10,asamplemeanof6.25,andasamplestandarddeviationof12.Assumethepopulationfromwhichthesampleisdrawnisnormallydistributedandthepopulationvarianceisknown.DegreesFreedomp=0.10p=0.05p=0.025p=0.0191.3831.3721.3631.8331.8121.7962.2622.2282.2012.8212.7642.7181011The95%confidenceintervalisclosestA.lowerboundof–2.20andanupperboundof14.70.B.lowerboundof–2.33andanupperboundof14.83.C.lowerboundof–0.71andanupperboundof13.21.Answer=BWithasamplesizeof10,thereare9degreesfreedom.Theconfidenceintervalconceptisbasedonatwo-tailedapproach.Fora95%confidenceinterval,2.5%ofdistributionwillbeineachtail.Thus,thecorrectt-statistictois2.262.Theconfidenceintervaliscalculatedwhereisthesamplemean,sisthesamplestandarddeviation,andnisthesamplesize.Inthiscase:6.25±2.262×12/√10=6.25±8.58369or–2.3314.83.CFALevelI“SamplingandEstimation,”RichardA.DeFusco,DennisW.McLeavey,JeraldE.Pinto,andDavidE.RunkleSection4.2ofisCFAexamforpreparationareinorbythantoanyand/orfor©CopyrightedbyInstitute.Allrightsreserved.26.Investorsshouldbemostattractedreturndistributionsthatare:A.normal.B.negativelyskewed.C.positivelyskewed.Answer=CInvestorsshouldbeattractedbyapositiveskew(distributionskewedtotheright)becausethemeanreturnfallsabovemedian.Relativetothemeanreturn,positiveskewtoalimited,thoughfrequent,downsidecomparedwithasomewhatunlimited,butlessfrequent,upside.CFALevelI"StatisticalConceptsandMarketReturns,"RichardA.DeFusco,DennisW.McLeavey,JeraldE.Pinto,andDavidE.RunkleSection827.Thefiguretherightshowsthehistogramfordistributionofweeklyreturnsonanindex.Themedianofthereturnsontheindex,ifcomparedthemean,mostlikelyA.smaller.B.greater.C.equal.Answer=AofisCFAexamforpreparationareinorbythantoanyand/orfor©CopyrightedbyInstitute.Allrightsreserved.Thehistogramclearlythatreturndistributionofindexpositivelyskewed(skewedtheright)andisunimodalhasonemostfrequentlyoccurringvalue).Forapositivelyskewedunimodaldistribution,themedianisalwayslessthanthemean.CFALevelI"StatisticalConceptsandMarketReturns,"RichardA.DeFusco,DennisW.McLeavey,JeraldE.Pinto,andDavidE.RunkleSections4.1,5.3,828.Adiscreteuniformdistributionconsistsofthefollowing12values:–8.80.8–4.6–Onasinglefromthedistribution,probabilityofdrawingavaluebetween–2.0and2.0fromthedistributionclosestA.16.67%.B.27.59%.C.33.33%.Answer=AFirstorderthevaluesfromsmallestlargest.ofisCFAexamforpreparationareinorbythantoanyand/orfor©CopyrightedbyInstitute.Allrightsreserved.–5.35.3–4.66.7–3.39.2Thennote2ofthevalues(i.e.,and1.4)between–2.0and2.0.Thus,theprobabilityofathedistributionbeingbetween–2.02.0is2/12=0.16667.CFALevelI"CommonProbabilityDistributions,"RichardA.DeFusco,DennisW.McLeavey,JeraldE.Pinto,andDavidE.RunkleSection2.129.Adescriptivemeasureofapopulationcharacteristicisbestdescribedasa:A.parameter.B.frequencydistribution.C.samplestatistic.Answer=AAnydescriptivemeasureofapopulationcharacteristiciscalledaparameter.CFALevelI“StatisticalConceptsandMarketReturns,”RichardA.DeFusco,DennisW.McLeavey,JeraldE.Pinto,andDavidE.RunkleSection2.230.Thearithmeticandgeometricmeanarecalculatedforthesamedata.Ifthereisvariabilityindata,comparedwiththearithmeticmean,themeanwillmostlikelyA.smaller.B.greater.C.equal.Answer=AThegeometricmeanisalwayslessthanorequalarithmeticmean.onlytimethetwomeanswillbeequaliswhenthereisnovariabilityinobservations.CFALevelI"StatisticalConceptsandMarketReturns,"RichardA.DeFusco,DennisW.McLeavey,JeraldE.Pinto,andDavidE.RunkleSection5.4.2ofisCFAexamforpreparationareinorbythantoanyand/orfor©CopyrightedbyInstitute.Allrightsreserved.31.Whichofthefollowingaccuratelydescribesadistributionthatismorepeakedthannormal?A.MesokurtoticB.PlatykurtoticC.LeptokurtoticAnswer=CAdistributionismorepeakedthannormaliscalledleptokurtotic.CFALevelI"StatisticalConceptsandMarketReturns,"RichardA.DeFusco,DennisW.McLeavey,JeraldE.Pinto,andDavidE.RunkleSection932.Thenullhypothesisismostlikelyberejectedwhenthep-valueoftheteststatistic:A.fallsbelowaspecifiedlevelofsignificance.B.exceedsaspecifiedlevelofsignificance.C.isnegative.Answer=AIfthep-valueislessthanspecifiedlevelofsignificance,thenullhypothesisisrejected.CFALevelI"HypothesisTesting,"RichardA.DeFusco,DennisW.McLeavey,JeraldE.Pinto,andDavidE.RunkleSection2ofisCFAexamforpreparationareinorbythantoanyand/orfor©CopyrightedbyInstitute.Allrightsreserved.33.Thefollowinginformationappliestoastart-upcompanysolelyownedbyanentrepreneur.ValueTotalunitsproducedAveragerevenue3,550$1,110Averagevariablecost$750Totalfixedcost$300,000$1,550,00012.5%TotalinvestmentRequiredrateofreturnOpportunitycostofowner’slaborThecompany'seconomicprofitisclosestto:$125,000A.$659,250.B.$784,250.C.$318,750.Answer=AEconomicprofit=Accountingprofit-TotalimplicitopportunitycostswhereAccountingprofit=Totalrevenue–Totalvariablecosts–TotalfixedcostsandTotalopportunitycosts=opportunitycostofcapital+opportunityoflaborTotalrevenue3,550×$1,1103,550×$750$3,940