Test Prep CFA-Level-I Exam Prep
CFA® Level I Chartered Financial Analyst (Page 323 )

• Matching hashes suggest the file has not changed.
• Different hashes indicate that the file was modified, whether authorized or unauthorized.

• Backup: Helps recover the previous version but does not identify or stop unauthorized changes.
• File labels: Classify or mark files; they do not verify integrity.
• Security audit: May discover weaknesses or improper changes, but is periodic and not a direct technical integrity control.

• The selling division receives a credit based on a favourable transfer price, often market price or full cost plus a profit margin.
• The receiving division is charged a lower amount, such as marginal cost or another agreed price.
• The difference is accounted for centrally by head office or a corporate adjustment.

sql 
CREATE PROCEDURE dbo.usp_CreateOrder 
AS 
BEGIN 
    SET NOCOUNT ON; 
    SET XACT_ABORT ON; 


    BEGIN TRY 
        BEGIN TRANSACTION; 


        INSERT INTO dbo.Orders (/ columns /) 
        VALUES (/ values /); 


        SET @OrderID = SCOPE_IDENTITY(); 


        COMMIT TRANSACTION; 
    END TRY 
    BEGIN CATCH 
        IF @@TRANCOUNT > 0 
            ROLLBACK TRANSACTION; 


        THROW; 
    END CATCH; 
END;

• BEGIN TRY contains the transactional work.
• SCOPE_IDENTITY() retrieves the identity generated by the INSERT; it belongs after the insert, not as the error-handling logic.
• COMMIT runs only if all statements succeed.
• BEGIN CATCH handles failures.
• IF @@TRANCOUNT > 0 prevents attempting a rollback when no transaction is active.
• ROLLBACK undoes partial changes.
• THROW re-raises the original error with consistent details for the application.
• SET XACT_ABORT ON ensures many run-time errors automatically terminate and roll back the transaction.

• Transfer — przeniesienie skutków lub kosztów ryzyka na inna organizacje, np. przez ubezpieczenie lub umowe.
• Akceptacja — firma swiadomie przyjmuje ryzyko bez dodatkowych dzialan.
• Mitigacja — zmniejszenie prawdopodobienstwa wystapienia ryzyka lub jego wplywu, np. przez wdrozenie kontroli bezpieczenstwa.
• Unikanie — calkowite wyeliminowanie ryzykownej dzialalnosci.

• Verifies the sender’s identity using their private key.
• Confirms the transaction was not altered after signing.
• Provides evidence that the signer approved or originated the transaction.

• Digital certificates: Bind an identity to a public key, but do not themselves prove that a specific transaction was signed.
• Encrypted passwords: Protect confidentiality or authentication, but generally do not provide transaction-level nonrepudiation.
• One-time passwords: Authenticate a user for a session or transaction, but usually do not provide durable proof of who authorized the electronic record.

• Minimum
• Maximum
• Average
• Count
• Null/empty values
• Distinct values

• Enable column profile
• Enable details pane
• Show column profile in details pane

• Due diligence: Investigating and evaluating a third party before entering into or continuing a business relationship.
• Attestation: An independent party provides assurance about an organization’s claims or controls. A SOC 2 examination is an example of an attestation engagement, but the analyst requesting and reviewing the report is performing due diligence.
• Internal audit: Reviews the organization’s own internal controls.
• Penetration testing: Actively tests systems for exploitable vulnerabilities.

• Namespace: The namespace associated with the code where the checkpoint was set.
• Time: When the checkpoint was captured or executed.

• Exception: Exceptions are viewed through debug logs or execution results, not as the primary Checkpoints tab information.
• Debug Statement: System.debug() output belongs in the Logs tab. A checkpoint captures program state, such as variables and their values, at a specific point in execution.

• CSIRT: A Computer Security Incident Response Team that handles and coordinates incident response.
• CVSS: A scoring system used to rate the severity of vulnerabilities.
• SOAR: Security Orchestration, Automation, and Response technology used to automate security workflows.

• B. Deploy to a SageMaker endpoint: This is needed for SageMaker-hosted models, not for a model intended to be used directly in Amazon Bedrock.
• C. Register with SageMaker Model Registry: SageMaker Model Registry is unrelated to invoking custom models in Bedrock.
• D. Grant access in Bedrock: Access permissions may be necessary, but they do not replace the required provisioned capacity.

• Periodic vulnerability assessments: Identify technical weaknesses but do not establish governance or ensure risks are managed.
• Established information security metrics: Help measure performance and report status, but measurement alone does not make governance effective.
• Advanced security technologies: Support security operations, but governance is primarily about direction, accountability, decision-making, and alignment with business objectives.

• Code suggestions: Inline completions as you write code, such as lines, functions, or blocks.
• Chat: An interactive interface for asking questions, explaining code, generating code, and helping with debugging.

• Knowledge Base: Not listed as a standard Copilot Individual IDE feature in this context.
• Pull Request Diff Analysis: More closely associated with GitHub-based code review or pull-request features, not the core Individual IDE extension capabilities.

• Constrained VMs: VMs whose workloads are experiencing resource pressure, such as insufficient CPU or memory. They may need additional resources or optimization.
• Overprovisioned VMs: VMs allocated more CPU, memory, or storage than their workloads require. Their resources may be reclaimed or reduced.

• Underprovisioned VMs: This is not the predefined view identified for this report question.
• Zombie VMs: These are typically inactive or unused VMs and are useful for cleanup, but they are not the two views specifically intended here to identify inefficient resource allocation.

• A static IP gives the surveillance system a predictable local address, so users can reliably reach it on the LAN.
• However, a static IP does not block internet-based login attempts. If the router exposes the device through port forwarding, attackers could still reach it.
• Port mapping normally exposes an internal service externally, so A is a poor choice as written.
• Subnetting alone also does not block traffic; it would require routing/firewall rules.

• A. Microsoft 365 group with Assigned membership
• C. Microsoft 365 group with Dynamic User membership

Why?

• Assigned membership: You explicitly add User1, User2, and User3.
• Dynamic User membership: Membership is automatically determined by a rule based on user attributes.

Why the other options are incorrect

• B and D: Security groups do not support the Microsoft 365 group expiration policy.
• E: Dynamic Device groups are intended for devices, not these users, and are also security groups.

• Sales process: Controls which Opportunity Stage values are available.
• Record type: Associates the appropriate sales process with a business scenario and controls available picklist values.
• Page layout: Controls which fields are displayed and whether they are required or read-only.

• Energy Market Team 1 ? Record Type 1, Sales Process 1, Page Layout 1
• Energy Market Team 2 ? Record Type 2, Sales Process 2, Page Layout 2
• Services/Installation Team ? Record Type 3, Sales Process 3, Page Layout 3

• A — Too infrequent: Formal strategies are often reviewed only every three to five years. This can make the organisation slow to respond to rapid changes in technology, competitors, regulation or customer needs.

• C — Relies on predicting the future: The approach assumes senior managers can make reasonably reliable forecasts and assumptions. In uncertain environments, these assumptions may quickly become invalid.

• E — Can restrict radical innovation: Formal planning tends to favour existing information, established objectives and incremental improvements. This may discourage experimental or highly innovative strategies that emerge from lower levels of the organisation.

• B concerns the difficulty of achieving competitive advantage through core competences when competing with focused specialists. It is not specifically a drawback of the formal top-down planning process.
• D is an activity organisations should undertake—continuous monitoring—not a drawback of the approach itself.

• The users currently have Office 365 Enterprise E3 licenses assigned directly.
• Assigning Microsoft 365 Enterprise E5 through a group does not automatically remove their directly assigned E3 licenses.
• From the Licenses blade, you can select the E3 product and remove it from all assigned users in one operation. This requires less effort than editing 2,500 users individually.

• Identity Governance manages access reviews, entitlement management, and related governance—not bulk license removal.
• Set-AzureAdUser does not remove product licenses.
• Set-WindowsProductKey applies Windows product keys and is unrelated to Microsoft 365 licensing.

• Set credit quotas for an account or individual virtual warehouses.
• Define monitoring intervals.
• Trigger actions when usage reaches thresholds, such as sending notifications or suspending a warehouse.
• Help control unexpected warehouse spending.

• Account Usage: Provides historical usage and billing data; it does not enforce credit limits.
• Warehouse Limit Parameter: Not the Snowflake object used for account-wide credit controls.
• Credit Consumption Tracker: Not a standard Snowflake object.

• CHAP: Uses a challenge-response exchange, so the password is not directly transmitted.
• IPsec: Provides authentication, integrity, and encryption for IP communications.
• EAP: An authentication framework that supports stronger methods, such as certificates or token-based authentication.

• Determining ISP-assigned address space: Usually involves public reconnaissance, such as WHOIS or regional Internet registry information.
• Bypassing DNS sinkholing: Would require evidence that malicious domains are resolving outside the organization’s sinkhole controls.
• Achieving initial access: DNS log entries alone do not demonstrate compromise or entry.
• Exfiltrating data: DNS tunneling generally involves repeated queries containing encoded or unusually long data, not merely internal host discovery.

• Portfolio definition cycle — establishes and maintains the portfolio strategy, objectives, and management framework.
• Portfolio delivery cycle — coordinates and monitors the delivery of change initiatives, ensuring the portfolio remains aligned with strategic objectives and delivers value.

• Practice — a structured area of portfolio management activity, such as risk management or resource management.
• Technique — a method used to perform an activity; it is not the term for portfolio delivery itself.
• Principle — a guiding rule for effective portfolio management.

• A — Technical review by business owner: A business owner may approve the business impact, but a technical review is normally performed by technical personnel.
• C — Cost-benefit analysis after implementation: Cost-benefit analysis should occur before implementation to support the approval decision.
• D — Business continuity testing: This can be appropriate for major changes, but it is primarily part of business continuity and disaster recovery planning—not a universal change-management activity.

• Operating profit is affected because transfer price determines internal sales revenue.
• Return on investment (ROI) is affected because ROI depends partly on operating profit.
• Sales revenue is affected because the division records revenue from transferring its output.
• Cost of components purchased is not affected by the transfer price. These are input costs paid to external suppliers and are based on the supplier’s price.

• 50% memory utilization baseline: The environment can be provisioned with excess capacity, leaving room for growth and workload spikes.
• Storage scalability: Cloud storage can generally be expanded as needed without redesigning the physical platform.
• Single circuit failure resilience: A properly designed IaaS provider uses redundant power circuits and infrastructure, so failure of one circuit should not take the platform offline.

• A — Dual PDUs: Helps with power redundancy but does not provide storage scalability.
• C — Network load balancing: Provides network-path resilience, not memory or storage scalability, and does not address a power-circuit failure.
• D — Multiple NAS devices: May improve storage capacity, but does not inherently provide power resilience or the required compute-capacity baseline.

• Scheduling overlapping working hours for critical collaboration
• Assigning independent tasks that can proceed asynchronously
• Adding clear handoffs between offices
• Documenting decisions, questions, and required inputs
• Building appropriate time into the schedule for responses

• A — Securing information assets: This is the responsibility of management and operational/security teams.
• B — Validating protection: Correct. The auditor checks whether controls—such as access restrictions, encryption, retention, and handling procedures—match the asset’s classification.
• C — Ensuring alignment with regulations: Management and legal/compliance functions typically establish classification requirements; the auditor may assess compliance but does not primarily define alignment.
• D — Defining classification levels: This is a management responsibility based on business needs, risk, and regulatory obligations.

• Documented and evaluated
• Assessed for security, cost, and operational impact
• Reviewed and approved by the appropriate personnel
• Tested before implementation
• Tracked with version history and rollback procedures

• Risk management process: May help assess the issues, but it does not authorize and manage design changes.
• Product design process: Applies primarily while creating a new design.
• Design review process: Normally evaluates a design before release; this design is already released.

1. Clear principles and boundaries — Employees have freedom, but decisions must remain within clear organizational values, policies and limits.
2. High degree of freedom — Managers are trusted to make decisions rather than seeking continual approval from senior management.
3. Frontline customer responsibility — Customer-facing managers should be empowered to manage customer relationships and respond quickly to needs.
4. Transparent and ethical information — Information should be openly available and used honestly, supporting trust and informed decision-making.

• Tracking who accessed or changed customer information
• Detecting unauthorized activity
• Supporting accountability and investigations
• Providing evidence for compliance and incident response

• Single sign-on not enabled: SSO improves convenience and centralized authentication, but it is not essential for access control.
• Complex passwords not required: This weakens authentication, but other controls may reduce the risk.
• Security baseline not consistently applied: A concern, but it is less specific and less immediately damaging than having no activity records at all.

1. Find the subnet-mask increment in the octet where the prefix ends.
2. Identify the network address by finding the subnet boundary at or below the given IP.
3. The first usable address is network address + 1.
4. The broadcast address is one address before the next subnet.
5. The last usable address is broadcast - 1.

• 172.28.228.144/18

• 172.28.228.144/23

• Share of overall contribution: part of the organization’s total contribution is allocated to the supplying division.
• Dual pricing: the supplying division may record a higher transfer price while the receiving division records a lower price, with central accounts absorbing the difference.
• A centrally imposed price range: this may allow the transfer price to be set above variable cost, helping the supplying division recover fixed costs.

• Maintain head office control: Transfer pricing generally supports decentralisation rather than direct head-office control.
• Establish centralised decision making: This conflicts with divisional autonomy.
• Develop a top-down culture: Transfer pricing is intended to support empowered divisions and goal congruence, not impose purely top-down management.

• The vulnerability scan identifies a vulnerability.
• The administrator verifies that the vulnerability is not present.
• Therefore, the scan produced a false positive.

• True positive: A vulnerability is reported and genuinely exists.
• False negative: A vulnerability exists, but the scan fails to detect it.
• True negative: No vulnerability exists, and the scan correctly reports no issue.

Why this is correct

• Each user authenticates with their own Google account.
• Google manages the user’s SSH key association.
• IAM controls who can access instances.
• Access can be audited by user identity, so security can determine who accessed a VM.
• Granting the role to a Google group avoids managing permissions individually.

Why the others don’t apply

• A: A shared private key is difficult to distribute securely and cannot reliably identify which employee used it.
• B: Manually collecting and deploying keys on every instance is operationally inefficient and complicates auditing.
• D: A project-wide shared key has the same identity and key-management problems as option A. It also does not provide per-user accountability.

• \Pipeline1
• \Folder1\Lakehouse1

• Pipeline1 remains at the workspace root in Workspace1, so it is deployed to the root of Workspace2.
• Lakehouse1 was moved into Folder1, so its full path is preserved as \Folder1\Lakehouse1.
• Fabric deployment pipelines preserve folder paths because an item’s full path is treated as part of its name.

• Ramen is a Linux worm associated with Red Hat Linux 6.2 and 7.0 systems.
• It spreads by scanning randomly generated IP addresses using tools such as synscan.
• It exploits vulnerable network services, including web-related services, and may leave malicious files or altered web content.
• The tar.gz file is also a clue because it is a common Linux archive/package format.

• Code Red: Primarily targeted Microsoft IIS servers running Windows.
• LoveLetter: Spread mainly through email attachments.
• Nimda: A Windows-based worm that spread through email, web servers, and network shares.

• Espionage: Stealing information for intelligence or competitive purposes.
• Data exfiltration: Unauthorized removal or transfer of data.
• Nation-state attack: A sophisticated attack sponsored by a government.
• Shadow IT: Unapproved technology or access methods used by employees.

• Existing expected ROI: 15%
• New project ROI: 14%
• Cost of capital: 12%

• Project return = 14%
• Cost of capital = 12%
• It earns 2% more than the cost of capital, so it should increase shareholder value.

• Economy: Obtaining inputs at the lowest appropriate cost.
• Efficiency: Making the best use of resources, such as staff, money, and equipment.
• Effectiveness: Achieving the intended objectives or outcomes.

• Espionage: Stealing information for intelligence or competitive purposes.
• Data exfiltration: Unauthorized removal or transfer of data.
• Nation-state attack: An attack sponsored or conducted by a government.
• Shadow IT: Unapproved technology or methods used to access organizational resources.

1. Yes — Microsoft Foundry provides a secure, governed environment for building and managing generative AI applications and agents. It brings together models, data, tools, evaluation, deployment, and monitoring.

1. Yes — Foundry is designed for enterprise workloads and supports scaling AI applications as usage grows. Scalability comes from the underlying Azure services and managed infrastructure.

1. Yes — Foundry can be used in solutions involving image recognition and computer vision. Applications can use vision-capable models and Azure AI vision capabilities for tasks such as image analysis, object detection, and OCR.

• Label applied does not automatically exclude a file from Copilot.
• Encryption/usage rights determine whether Copilot can access the file’s content.
• If the user has no permission under Label2, File3 should be unavailable to Copilot for that user.
• File3’s label might be inherited by derived content only if File3 was actually processed and contributed by an authorized user; it should not be treated as contributing merely because it exists in the source set.

• Deploy five individual VMs: This does not create a VM scale set.
• Modify Availability Zones or Size settings: These actions do not create the required scale set and add unnecessary steps.
• VM orchestration mode: This is Flexible orchestration, intended for more individually managed VMs and mixed configurations. It is not the best choice for a straightforward group of identical instances.

• The type of change: standard, normal, or emergency
• The risk, impact, and complexity
• The change model being used

• A standard change may be pre-authorized through its change model.
• A normal change may require assessment and approval by an appropriate change authority.
• An emergency change may be authorized by an emergency change authority, often using an expedited process.

• Change authorities are not only needed for emergency changes.
• They are not assigned only when a change is deployed.
• They are not only required for normal changes.

• s3:GetObject for the relevant objects
• s3:ListBucket if listing is required
• Appropriate bucket and object resource permissions

• B: Making the bucket public is insecure and unnecessary.
• C: Prompt engineering cannot override AWS IAM or encryption permissions.
• D: Data sensitivity does not determine whether the role can access it.

• Lower order numbers appear first.
• For example, a variable with order 100 appears before one with order 200.
• The Sequence field is not the control used for catalog variable display order.
• The Default Value sets a value, not placement.
• The Choice field defines selectable options, not the variable’s position.

• True positive: The scan reports a vulnerability that really exists.
• False positive: The scan reports a vulnerability that does not exist.
• True negative: The scan correctly reports no vulnerability.
• False negative: The scan fails to detect a vulnerability that is actually present.

• Espionage: Stealing information for intelligence or competitive purposes.
• Data exfiltration: Unauthorized removal or transfer of data.
• Nation-state attack: An attack sponsored or conducted by a government.
• Shadow IT: Technology or access methods used outside approved IT processes.