Cisco
CompTIA
ISC
EC-Council
EXIN
Fortinet
ITIL
Juniper
Microsoft
VMware
Avaya
SAP
Google
NVIDIA
Salesforce
Amazon
Palo Alto Networks
ISC2
Splunk
ServiceNow
All Vendors
  2. Home
  3. Exams
  4. CFA
  5. CFA I

CFA CFA I Exam
CFA Level I Chartered Financial Analyst (Page 118 )

Updated On: 26-Jan-2026
Page 118 of 793
PDF with 3960 Questions

An investor purchased a stock for $60 a share using margin from his broken If the initial margin requirement is 40%, and the maintenance margin requirement is 20%, which of the following best describes the price at which a margin call will initially be triggered?

  1. Below $30.
  2. Below $45.
  3. Below $48.

Answer(s): B



In a rebuttal to comments made by Dilbertico's fundamental analyst, Keith Howard states that future changes in stock prices cannot be predicted based on a company's institutional ownership. State which form of the efficient market hypothesis (EMH) Howard's statement supports and also state a type of empirical study which tests that form of the EMH.

  1. Weak form of the EMH and trading rulestest.
  2. Semistrong form of the EMH and trading rules test.
  3. Semistrong form of the EMH and event study.

Answer(s): C



Bart Wiggum believes the current level of the S&P 500 index reflects all public information. To convince his supervisor of his hypothesis, Wiggum has downloaded a daily price series for the S&P 500 index for the period 1950 to 2007. Which of the following tests can be used to test Wiggum's belief about public information?

  1. Runs test.
  2. Autocorrelation test.
  3. Earnings surprise test.

Answer(s): C



The constant-growth dividend discount valuation model states that the fair price of a share of common equity is determined by dividing next period's forecasted dividend by the difference between the cost of equity capital and the firm's long-term sustainable growth rate. Using this relationship, the cost of equity capital can alternatively be stated as:

  1. D/V + g.
  2. RFR-(+ RFR).
  3. expected growth rate of dividends minus required rate of return.

Answer(s): A



Six-month LIBOR is an interest rate which:

  1. represents the interest rate paid on a CD that matures in 6 months
  2. is the return available on the shortest term euro-denominated securities.
  3. is determined by adding a small spread to the yield available on a UK government bond maturing in 6 months.

Answer(s): A



Viewing page 118 of 793
Viewing questions 586 - 590 out of 3960 questions



Post your Comments and Discuss CFA CFA I exam prep with other Community members:

Join the CFA I Discussion