This website uses cookies to ensure you have the best experience. Learn more

Cfa Test 2010 Essay

1746 words - 7 pages

CFA Level I June 2010 - Mock Exam Questions
1. Which of the following least likely violates Standard VII (B): Reference to CFA Institute, the CFA Designation and the CFA Program? A. Joe Smith, C.F.A. B. Joe Smith, CFA C. Joe Smith, Chartered Financial Analyst

Answer: C   According to Standard VII (B), an analyst must not exaggerate the meaning or implications of membership of CFA Institute, holding the CFA designation, or candidacy in the CFA Program. A member cannot use a bold or larger font for the letters CFA.

2. Which of the following is least likely a characteristic of GIPS? A. The investment management firm must define the entity that claims compliance. B. All fee-paying ...view middle of the document...

Rejected B. Not rejected C. Accepted. Answer: A.  The p-value is the lowest level of significance at which the null hypothesis can be rejected. At the 5% significance level the null hypothesis will be rejected as the significance level of the test is greater than the p-value (4%). We can only reject or fail to reject the null hypothesis in a hypothesis test. The null is never ‘accepted’.

6. Consider the following statements: Statement 1: The MRP of labor for a firm that is a price taker remains constant at all output levels. Statement 2: The MRP of labor for a firm that is a price searcher rises as it expands output. Which of the following is most likely? A. Both statements are correct B. Both statements are incorrect C. Only Statement 1 is correct. Answer: C

© Élan Guides 2010

 

A firm that is a price-taker faces a perfectly elastic demand curve. Since the price of its output remains constant, MRP remains constant as well. A firm that is a price-searcher faces a downward-sloping demand curve for its output. Since MR is less than price, the MRP of each additional unit of labor falls as output expands.

7. The imposition of which of the following by the government is least likely to result in a deadweight loss from underproduction? A. Taxes B. Quotas C. Subsidies Answer: C   Taxes and production quotas result in deadweight losses from underproduction. Subsidies result in deadweight losses from overproduction.

8. Consider the following two statements: Statement 1: The more effectively a monopoly can price discriminate the greater the deadweight loss to society. Statement 2: Perfect competition results in an efficient allocation of resources and an efficient scale of production. Which of the following is most likely? A. Both statements are incorrect B. Only Statement 1 is correct C. Only Statement 2 is correct. Answer: C   Statement 2 is correct. The more perfectly a monopoly can price discriminate, the lower the deadweight loss to society. Under perfect price discrimination, the monopoly’s MR curve equals its demand curve, and there is no deadweight loss to society. Bear in mind however, that in this scenario the entire consumer surplus is taken up by the monopoly.

© Élan Guides 2010

9. An analyst obtains the following financial ratios for a company: Net profit margin Return on assets Asset turnover Financial leverage ratio 15% 20% 1.33 1.5

The return on equity for this company is closest to: A. 30% B. 40% C. 20% Answer: A ROE = NP margin * Asset TO * Financial leverage ratio 0.15 * 1.33 * 1.5 = 0.2993 = 30%

10. In the year of lease inception, recognition of a lease as an operating lease as opposed to a direct-financing lease by the lessor will most likely result in a higher: A. Net income B. Total debt C. CFO Answer: C In the year of inception, a lessor who recognizes an operating lease as opposed to a direct-financing lease will report:    Lower net income Higher CFO Lower CFI

11. Which of the...

Other assignments on Cfa- Test 2010

Hospitals Paper

6014 words - 25 pages I hope to provide in this paper a comprehensive understanding for what the term “hospital” has become. Hospitals are an extremely complex system that man has created and shaped and reshaped throughout history. My goal in writing and researching this paper will be to provide those who read it a clear understanding on how the hospital system got to where it is today, and to shed some light on the many organizations that affiliate with and

Course Syllabus Essay

2610 words - 11 pages . | |Course Prerequisites |COMPASS Placement Test or grade of “C” or better in Math 98 or equivalent. | |Course is Expected to |This course is intended for students who lack credit in one year of high school algebra or desire a review of the subject | |Serve |matter


1477 words - 6 pages on the plane and is provided to people in need (The Boeing Company: Environment, 1999-2010). Factors that Influence Boeing’s Planning There are different types of planning involved when an organization is being established. The types of planning are strategic, tactical, operational, and contingency. Strategic planning provides a time frame of numerous years because a backlog can take a large amount of time. Tactical planning is more cautious

Assisted Suicide

1015 words - 5 pages Should physician-assisted suicide be legal? While I believe if one chooses to end his or own life through physician assistance for reasons that they chose, the choice should be up to the individual. Physician-assisted suicide should be at one's discretion. “Assisted Suicide, also called Voluntary Euthanasia, is currently a contentious issue in many countries. Because Euthanasia is legal in a few modern democracies: the Netherlands, Belgium

Tanglewood Case 1

797 words - 4 pages Tanglewood’s staffing strategy requires the organization to make key decisions about the acquisition, deployment, and retention of the organization’s workforce. In order to accomplish this, Tanglewood’s must make thirteen decisions regarding its staffing levels and its staffing quality. One of the first decisions that Tanglewood needs to choose is to acquire or develop talent. Tanglewood should try to develop their current talent because one


1391 words - 6 pages Есе по въпроса: Кои от всички „действащи” лица могат да се разглеждат като морално отговорни и в какво именно? по казуса Форд „Пинто” Корпоративните злодеяния са нанесли повече вреди на обществото от всички улични престъпления взети заедно. Според данни на ФБР сумата от уличните престъпления възлиза на $3.8 млрд. годишно, а загубите от корпоративните измами между $100 млрд. и $400 млрд. годишно

The Penis

1052 words - 5 pages The short story ”The Penis” is written by Hanif Kureishi. The short story is about a penis, which has been separated from its owner Doug, who we hear from later on. At first though we hear about a guy called Alfie who was “a cutter – a hairdresser – and had to get to work”. He is having breakfast with his wife, when she asks him what he did last night, and if he had a good time last night? Alfie can not remember what he did last night, he then

Managed Care Paper

543 words - 3 pages Managed Care and Case Management Care Marvin Lloyd BSHS/402-Case Management 27 August 2012 Virgil Miller Managed Care are techniques employed to help reduce the cost for providing health benefits and a system for improving organizations quality of care


439 words - 2 pages The life expectancy is lower; so people are not kept alive with drugs for decades in a virtual sleep state. There is less state education; so kids don't have it drilled into them that their only goal in life is to make money, at the cost of 'everything' else. The health care is less; so diseases, usually brought by Westerners, kill many more than they do in countries where drug companies can make a fortune from selling medicines that aren't

Chapter 6 International Business

7113 words - 29 pages CGGGG The Political Economy of International Trade Chapter Outline OPENING CASE: Why Are Global Food Prices Soaring? INTRODUCTION INSTRUMENTS OF TRADE POLICY Tariffs Subsides Country Focus: Subsidized Wheat Production in Japan Import Quotas and Voluntary Export Restraints Local Content Requirements Administrative Polices Antidumping Policies Management Focus: U.S. Magnesium

Scope And Goals

279 words - 2 pages Introduction: Kudler Fine Foods is a specialty food store based in San Diego, California with its three locations in La Jolla, Del Mar, and Encinitas. Kudler Fine food prides itself on offering fresh and organic products that are carefully selected from local farmers and around the world. The organization has recently taken the initiative to start a Frequent Shopper Program to market and increase sales. This program will offer the customers a

Similar Documents

Abcd Essay

4675 words - 19 pages clients. Peter Landman, an investment officer from her alma mater, was considering TAM as an investment manager for part of the college’s endowment. She wondered if this was the client she had been looking for to expand the business. Company Background With undergraduate degrees in finance and computer science, Thompson joined a quantitative asset management firm in Chicago in 2003. In her five years there, she completed her CFA

Mgt216 Essay

714 words - 3 pages released their product on the market. After G-BioSport ran test, it was determined that there were traces of a contaminant in the sample received. The quality control manager must identify a developmental solution to maintain the company’s reputation and identify the problem. G-BioSport had stumble upon a serious problem that required immediate attention. They had just discovered that there were traces of a contaminant in the sample they received

Economy Effect Of Marijuana Essay

277 words - 2 pages Modern American History by Alan Renga 2nd Mid Term! You will be given 3 Short Essay questions and 20 Multiple Choice questions deriving from this list! 80 points total! The 1920s Warren Harding then Calvin Coolidge Tea Pot Dome 1st Red Scare Immigration Restriction, Sacco and Vanzetti Langston Hughes, Marcus Garvey, KKK Prosperity, advertising Prohibition, Al Capone Flappers, Clara Bow, Rudolph Valentino Babe Ruth, Jack Dempsey

The Vc Shakeout Essay

2033 words - 9 pages liquidity. A 2010 New York Times story on lean start-ups cites experts who see a “shrinking role for venture capitalists in seeking and backing promising young entrepreneurs,” as alternatives including angel investors gain favor. Fresh research by Josh Lerner and William Kerr of Harvard Business School bolsters this argument with evidence that entrepreneurs who obtain angel investing are more likely to survive at least four years and show improved