CompTIA
Checkpoint
ISC
HP
Dell
EC-Council
EXIN
Fortinet
ITIL®
Juniper
PMI
Microsoft
VMware
Avaya
Google
Salesforce
Amazon
Palo Alto Networks
Certiport
ISC2
All Vendors
  2. Home
  3. Exams
  4. Test Prep
  5. CFA-Level-I

Free CFA-Level-I Exam Braindumps (page: 260)

Page 259 of 991
PDF with 3963 Questions

If you make 22 deposits of $33 with the first deposit occurring next month, how much do you have immediately after the last deposit, if the account earns 4.44% per year, compounded annually?

  1. $666.00
  2. $1,207.81
  3. $$457.44
  4. $1,313.51
  5. $1,189.62

Answer(s): E

Explanation:

On the BAII Plus, press 22 N, 4.44 I/Y, 0 PV, 33 PMT, CPT FV. On the HP12C, press 22 n, 4.44 i, 0 PV, 33 PMT, FV. Note that the answer will be displayed as a negative number. Make sure the BAII Plus has the P/Y value set to 1.



As the alternative mean approaches the hypothesized mean, what can we say about the risk?

  1. Smaller risk of a Type II error
  2. Greater risk of a Type II error
  3. Smaller risk of a Type I error
  4. None of these answers
  5. Greater risk of a Type I error

Answer(s): B

Explanation:

When the alternative mean approaches the hypothesized mean, there is a greater possibility of accepting the null when it is actually false since they are close together.



Chances are 50-50 that a newborn baby will be a girl. For families with five children, what is the probability that all the children are girls?

  1. 0.100
  2. None of these answers
  3. 0.250
  4. 0.001
  5. 0.031

Answer(s): E

Explanation:

This is a binomial probability. The probability of getting r successes out of n trials where the probability of success each trial is p and probability of failure each trial is q (where q = 1-p) is given by: n!(p^r)[q^(n-r)]/r!(n-r)!.
Here n = 5, r = 5,p = 0.5 and q = 0.5. Therefore we have 5!(0.5^5)(0.5^0)/5!0! = 0.03125.



You are given a risk-free rate of 5% per year, a portfolio return of 15% per year, and a standard deviation of portfolio return of 16% per year. What is the Sharpe measure of risk-adjusted performance?

  1. 0.625.
  2. 0.675.
  3. 0.500.
  4. 0.750.

Answer(s): A

Explanation:

The Sharpe measure of risk-adjusted performance is equal to (rbar_p - rbar_f)/sigma_p, where rbar_p is the mean portfolio return, rbar_f is the mean risk-free return, and sigma_p is the standard deviation of portfolio return. In our case, we have (15% - 5%) / 16% = 10/16 = 5/8 = 0.625.






Post your Comments and Discuss Test Prep CFA-Level-I exam with other Community members:

CFA-Level-I Discussions & Posts