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2025年CFA特许金融分析师《CFA一级》模拟试卷一

CFA一级 模拟试卷 共 180 题 5918 次浏览 更新于 2026-09-26
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一、单选题

根据题目描述选择正确答案

1
1-1 Charles Enzo, a portfolio manager of SWIFT Asset Management Ltd., invited his friend Mark for dinner. Mark complained to Enzo that he was performing due diligence on ABB Corporation, and most of his spare time was occupied by this program. He must finish the report in two weeks since his company was planning to acquire ABB. Thenext day, Enzo searched the Internet for any news of the acquisition but found nothing. He decided to allocate 10% of his portfolio to ABB’s stock. Two weeks later, Enzo realized $3 million profit when Mark’s company announced its intention to acquire ABB Corporation. Enzo has most likelyviolated the CFA Institute Standards of Professional Conduct concerning:
  • A.diligence and reasonable basis.
  • B.suitability.
  • C.material nonpublic information.
2
1-2 An asset management firm has the following policy concerning new recommendations: when a new recommendation is made, each portfolio manager estimates the likely transaction size for each of their clients. Clients are notified of the new recommendation in the order of their estimated transaction size-largest first. All clients have signed a form where they acknowledge and consent to this allocation procedure. With respect to the CFA Standards, this is:
  • A.a violation of the Standard III(B) Fair Dealing.
  • B.a violation of the Standard IV(A) Loyalty.
  • C.not a violation because the clients are aware of the policy.
3
1-3 Eden Hazard is a CFA level I candidate. Hazard meets his friends who have passed the CFA level I exam and he wants to get some information about last year's exam. Hazard asks his friends if the business cycle was tested last year or not. Some friends refused to answer, and some others answered him. Which of the following statements is most accurate?
  • A.Hazard and the friends who answered have violated the CFA Standards.
  • B.Hazard and the friends who refused to answer have violated the CFA Standards.
  • C.All his friends have violated the CFA Standards.
4
1-4 John Hank, CFA, an asset manager, applies soft dollars generated from client accounts to pay his own CFA member fee. He believes he can provide clients professional advice as a CFA Charterholder. Which of the following CFA Standards does John violate?
  • A.Loyalty
  • B.Loyalty, Prudence, and Care
  • C.John does not violate any CFA Standard.
5
1-5 Frank Murray, CFA, a consultant of ABB asset management firm signed a contract with his employer that he couldnot solicit former clients for at least one year after his leaving. After he left the company, he consulted with a lawyer about whether the agreement was legally enforceable. The lawyer advised him that it was doubtful that the agreement could be enforced, so Murray sent a marketing brochure about his new firm to his former clients. According to the Standards of Practice Handbook, which of the following standards does Murray most likely violate?
  • A.Disclosure of Conflicts
  • B.Loyalty
  • C.Preservation of Confidentiality
6
1-6 Bobby Neil has recently passed all three levels of the CFA Program and would be eligible for the CFA charter upon completion of the required work experience. Bobby, on his CV, stated “CFA (Passed Finalist)” under Qualifications while applying for the job of an analyst at a leading investment bank in the country. Did Bobby violate any of the CFA Institute Standards of Professional Conduct?
  • A.No, he only stated facts.
  • B.Yes, related to reference to the CFA designation.
  • C.Yes, related to loyalty, prudence, and care.
7
1-7 Diane Chuck, CFA, manages equity accounts for government entities whose portfolios are conservative and risk-averse. Since the objective of her clients is to maximize returns with the lowest possible risk, Chuck considers adding short positions of futures which she believes could hedge the high volatility of the small-cap stocks in the portfolios. Does Chuck violate any of the CFA Institute Standards of Professional Conduct?
  • A.Yes, regard to suitability.
  • B.Yes, regard to loyalty, prudence, and care.
  • C.No.
8
1-8 David Bleu, CFA, is an office manager in an emerging country of Newland. He corporates with many clients from a developed country Oldland. In Oldland, the security law allows traders to trade before their clients while in Newland the law does not say anything about this action. The law in Newland states that the law of the client’s home country should govern. In trading actions, Bleu should comply with:
  • A.the law of Newland.
  • B.the law of Oldland.
  • C.the Code and Standards.
9
1-9 Pellow, CFA, works for Barclays Investment Bank as a business analyst. Recently he is invited by Westland Tech, a company which he is covering, to visit Westland’s headquarters. Pellow realizes that the location is remote. Thomas, the chief financial officer of Westland, offers company aircraft for Pellow. If Pellow accepts the offer after he obtains the written consent from his employer, does he violate any CFA Institute Standards of Professional Conduct?
  • A.No.
  • B.Yes, concerning independence and objectivity.
  • C.Yes, concerning misconduct.
10
1-10 Carl Victor, CFA, is bearish on H&H Company and takes a short position in the stock. Carl then posts negative claims about the company’s management team, which are untrue, to several popular investment forums on the web. According to the CFA Institute Standards of Professional Conduct, Carl has violated the CFA Standard concerning:
  • A.fair dealing.
  • B.communication with clients.
  • C.market manipulation.
11
1-11 Which of the following statements isleastaccurate?
  • A.Situational influence includes the bystander effect.
  • B.Situational influences can stimulate individuals to behave in their short-term interests and ignore the longer-term risks to themselves or related stakeholders.
  • C.Strong compliance culture is not a situational influence.
12
1-12 James Blind, CFA, holds a significant personal investment in Union Credit, and he just informs his clients who have positions in Union Credit to sell because of the market conditions. Tenminutesafter that, he decides to sell his personal investments in Union Credit. Blind has:
  • A.violated Standard VI(B) Priority of Transactions.
  • B.not violated Standard VI(B) Priority of Transactions.
  • C.violated Standard III(B) Fair Dealing.
13
1-13 BrandonTaylor, CFA,actively managesa portfolio of stockswitha quantitative modelin order to obtaina higher return than the market. The portfolio’sreturnsearnedusing the model have been higherthanthe returns ofthe S&P Index by 3% to 5%over the last four years.In publicity materials, Taylorstates, “We choosea portfolio that willachieve a return higher than the overallmarket by 3% to 5%, but witha similar riskthrough our complex quantitativeanalysis.” This statement is:
  • A.permitted because the portfolio’s prior performances have proved the portfolio can obtain a higher return.
  • B.permitted because the statement gives a general description of the basic characteristics of the fund’s risk and return goals.
  • C.prohibited because Taylor is misrepresenting the investment return that his firm can generate.
14
1-14 Alan Smith, CFA, is an independent director for Dimu Furniture. One day, Smithcomes across that Dimu Corp. hasmade somecontributions to severalpoliticians whichis suspected to beillegal. Afterconsultingwitha third-party legal counsel, Smithconfirms that the contributions are indeed illegal. Smithinsists to make a disclosure of the issue at the next board meeting. However, for the reputation of a company, theboardvotes not to disclose the contributions. Smith’s bestcourse of action is to:
  • A.offer his resignation to the board and seek after legal counsel for the next move.
  • B.write to the executive officer of Dimu to bitterly oppose the board’s actions.
  • C.stop attending board meetings until the the contributions are disclosed.
15
1-15 Glen Robinson, CFA, works for Golden Asset Management as an analyst. Recently, Robinson is informed that he is about to be promoted to be a supervisor, but the firm’s inadequate compliance procedures attractedRobinson’sattention that they are notbeing monitored or enforced. Which of the following actions is correct?
  • A.Decline in writing to accept supervisory responsibility until the firm establishes the appropriate compliance procedures.
  • B.Quit from the firm unless the procedures are monitored and enforced.
  • C.Report to the management and clearly state the problem.
16
1-16 To construct a composite in compliance with GIPS, the composite must include:
  • A.only the best-performing portfolios which have been managed, according to a similar strategy, mandate, or investment objective.
  • B.all actual, fee-paying, non-discretionary portfolios.
  • C.all actual, fee-paying, discretionary portfolios that are managed in accordance with a similar strategy, mandate, or investment objective.
17
1-17 VernonScott, CFA, a research analyst at an investment bank, doesnotagree with theresearch team's sellrecommendation fora specific company's stocks. In spite of the contrarian view, heagrees thattheteammaketherecommendation based on extensive research.He leaves his nameon the research report and distributes thereportto all the investment bank's clients. To comply withthe CFA Institute Standards of Professional Conduct, which of the followingwould be leastappropriate for Scott to undertake?
  • A.Issue a new report to support his opinion.
  • B.Insist his name be removed from the report.
  • C.Leave his name on the report.
18
1-18 ESIH Investment Co. receives securities brokerage business from Golden Asset Management. Inreturn, Golden obtainshight net worth clients referral from ESIH. Golden alwaysinformsclients oftheagreement withESIH in written form beforethe relationship is established. Regardingto this practice, Golden has:
  • A.not violated with the Code and Standards.
  • B.violated the Code and Standards by failing to ensure the confidentiality of the agreement with ESIH.
  • C.violated the Code and Standards by creating a conflict of interest due to the inappropriate agreement.
19
1-19 Aaron Hathaway is a client of Golden Investments, a full-service brokerage firm that provides its own investment research service. One of Golden’s analysts has just changed her recommendation from "Buy" to "Sell" on one of the stocks that Hathaway holds in his portfolio and sends an e-mail to all firm clients, including Hathaway, informing them about the change of the investment recommendation. Hathaway phones Angela Swift, CFA, his broker at Golden Investments, and asks her to purchase more stocks that Hathaway holds in his account with the firm. Swift executes the orders immediately. With respect to fair dealing, Swift:
  • A.is not in violation of the CFA Standards because her firm has already sent Hathaway an e-mail regarding the change of recommendation and the order is unsolicited.
  • B.is not in violation of the CFA Standards because Swift is not the analyst who changed the recommendations so she just needs to follow her clients’ instructions.
  • C.is in violation of the CFA Standards because Swift should have informed Hathaway about the change of investment recommendation from buy to sell prior to accepting the order.
20
1-20 Miranda Grafton, CFA, purchased a large block of stock on behalf of specific accounts she manages at varying prices during the trading session. The stock realized a significant gain in value before the close of the trading day, Grafton reviewed her purchase prices to determine what prices should be assigned to each specific account. According to the Standards of Practice Handbook, Grafton’smost appropriate action is to allocate the execution prices:
  • A.by giving longer-term clients more favorable prices.
  • B.to all clients within the block trade at the same execution price.
  • C.on a weighted basis according to the size of the clients’ accounts.
21
1-21 Ali Ahmed, CFA, works for an international investment fund. He works on research reports and analyses about public companies. In his firm, employers are required to use the company’s data and programs to set the models. In his last report, Ahmed can not get access to his firm’s account and has to use an external program instead to conduct his research. Without validating the soundness of the external program, Ahmed wouldleast likely violate:
  • A.Standard V (B) Communication with Clients and Prospective Clients.
  • B.Standard I (D) Misconduct.
  • C.Standard IV (A) Loyalty.
22
1-22 Sara Brecker is an analyst working for Jas investment Company. Jas investment has required Brecker’s team to write a research report predicting the expected interest rate for commercial mortgages over the next three months. Sara submits her report to the other 7 team members for review according to the company procedures. However, only 2 team members support her, the other 5 disagree with her conclusion. Ultimately the report is changed significantly and the interest rate expectation is lower than Sara’s prediction. After reviewing the changed report, Sara is confident that this process has a reasonable and adequate basis. Which of the following statements ismost likelytrue?
  • A.The firm cannot issue a report that is different from Sara’s original report.
  • B.Sara must ask to take off her name from the report because it does not reflect her opinion.
  • C.Sara does not need to dissociate from the report.
23
1-23 Collin Fan, CFA, builds financial models based on historical data. He tracks and keeps data for a few years to build his models. His supervisor requires him to keep the data used for his analyses at least 5 years and the financial regulators require that information and data should be maintained for at least 6 years. How long must Fan keep the data used in his models?
  • A.At least 5 years
  • B.At least 6 years
  • C.At least 7 years
24
1-24 Hugh Anderson, CFA, works for Golden Finance, an investment advisory firm. Angela Jackman, a new client of Golden, is meeting with Anderson for the first time. Anderson spends a few minutes for getting acquainted and expounding the principles and fundamentals of the various service modes that Golden can provide. After getting an affirmative response from Jackman, Anderson recommends one of his recent research findings regarding a highly undervalued stock which has significant potential gains but relatively low risk, and he can provide further details according to Jackman’s requirements. Anderson most likely:
  • A.violates the CFA Standards regrading II (A) Marterial Nonpulic Information.
  • B.does not violate the CFA Standards.
  • C.violates the CFA Standards reagarding III (C) Suitability.
25
1-25 Diana Fairbanks, CFA, is married to an auditor who is employed at a large accounting firm. When her husband mentions a high-tech firm he audits that will receive a qualified opinion, she thinks nothing of it. Later that week when she reviews a new client account, she notices there are substantial holdings of this high-tech firm. When she does a thorough Internet search for news on the company, she does not find anything about its most recent audit or any other adverse information. Which of the following actions concerning the high-tech firm should Fairbanksmost likely take to avoid violating the CFA Institute Standards of Professional Conduct?
  • A.Take no investment action.
  • B.Complete a thorough and diligent analysis of the company and then sell the stock.
  • C.Sell the stock immediately as she has a reasonable basis for taking this investment action.
26
1-26 Bob Douglas, CFA Institute member, sends a preliminary research report on a company to his supervisor. The supervisor approves the report, but later Douglas finds one of the assumptions in his model is not realistic and he should revise downward the earnings estimate of the company. Douglas resubmits a new version to the supervisor with the earnings estimate being adjusted. The analyst soon finds out that the supervisor plans to release the first version of the report without a reasonable and adequate basis. In response to this situation, the analyst must:
  • A.insist the supervisor changing the earnings forecast or removing his (the analyst's) name from the report.
  • B.both insist that a follow-up report be issued and take up the issue with regulatory authorities.
  • C.only insist that the first report be followed up by a revision.
27
1-27 Aaron Hathaway, CFA, is a famous analyst working for a large asset management firm. One of his friends, Jason Carl, CFA, is a self-employed financial analyst. A week ago, they met in a marketing event, and Jason discussed with Aaron about the details of a valuation model he was working on. Aaron was so interested in the validity of the model that he used directly in his research report. Aaron has:
  • A.violated the CFA Standards regarding misrepresentation.
  • B.violated the CFA Standards regarding conflicts of interests.
  • C.not violated the CFA Institute Standards of Professional Conduct.
28
1-28 Patric Bateman, CFA, is an analyst at Gronke Investment. Bateman works on a report about Trust Bank (TB), an investment bank, in the morning. During his lunch break, Bateman goes out with Eva Lynn, his colleague at the investment banking department in Gronke Investment.He tells her about his final results and promises her to send her the report before publication. If Bateman sends the report to Lynn as promised, he wouldleast likelyviolate the CFA Institute Standard relatedto:
  • A.loyalty.
  • B.conflict of interests.
  • C.independence and objectivity.
29
1-29 The following tableindicates the production possibilities of corn and rice per day in China and Japan.题目图片Which of the following statements about the table is most accurate?
  • A.Mutual gains could be realized from trade if Japan specialized in rice production and China specialized in corn production.
  • B.Mutual gains could be realized from trade if Japan specialized in corn production and China specialized in rice production.
  • C.Since Chinese workers can produce more corn and rice than Japanese workers, no gains from trade are possible.
30
1-30 An analyst lists the most recent 100 daily returns of a stock in ascending order. The 73rd to 77th data points are: 9.08%, 9.11%, 10.01%, 10.19% and 11.08%, respectively. The value of the third quartile of the 100 data points is closestto:
  • A.10.01%.
  • B.10.15%.
  • C.10.10%.
31
1-31 Under IFRS and US GAAP, which of the following statements about operating lease for lessor is leastaccurate?
  • A.The lessor retains the assets on the balance sheet.
  • B.The lessor recognizes lease receipts as income and the depreciation expense on the income statement.
  • C.The cash receipts are reported under CFF.
32
1-32 Which of the following is not a reason that the aggregate demand curve isdownward sloping?
  • A.For a fixed quantity of nominal wealth when there is an increase in the price level, the number of goods and services that could be purchased will be decreased.
  • B.When interest rates increase, most firms will invest less due to higher financial costs.
  • C.Non-domestic consumers will increase their demand for domestic products when there is an appreciation of the real exchange rate.
33
1-33 An analyst is doing a research on the domestic stock market. If an agreement with adjacent countries is reached, the probability that the stock index rises above 4000 is 60%. While the probability for the stock index rising above 4000 is only 25% given the agreement is not reached. Suppose the probability of reaching the agreement is 46%, what’s the probability that the agreement is reached given the stock index rises above 4000?
  • A.27.6%
  • B.41.1%
  • C.67.15%
34
1-34 According to IFRS, how do cash dividends received from FVPL (financial assets measured at fair value through profit or loss) and FVOCI (financial assets measured at fair value through other comprehensive income) affect other comprehensive income?
  • A.FVPL: No effect ; FVOCI: No effect ;
  • B.FVPL: Increase ; FVOCI: No effect ;
  • C.FVPL: Increase ; FVOCI: Increase ;
35
1-35 Alice Finance Co. prepared its financial statement under US GAAP. An analyst gathered the following information on Alice:题目图片What is the free cash flow to firm (FCFF) and free cash flow to equity (FCFE) respectively if Alice’s tax rate is 30%?
  • A.FCFF: $3,140 ; FCFE: $3,200 ;
  • B.FCFF: $3,200 ; FCFE: $2,800 ;
  • C.FCFF: $3,140 ; FCFE: $2,800 ;
36
1-36 Golden Corporation reported the following shareholders’ equity data as of December 31, 2018:题目图片During 2019, Golden:Purchased trading securities for $110,000. The securities have a fair value of $130,000 at year-end.Purchased available-for-sale securities for $270,000. The securities have a fair value of $250,000 at year-end.Translated the financial statements of a foreign subsidiary and calculated a $30,000 unrealized gain.Realized $70,000 gain from the disposal of a property.Calculate Golden’s accumulated other comprehensive income as of December 31, 2019.
  • A.$500,000
  • B.$510,000
  • C.$520,000
37
1-37 Golden Co. had 1,000,000 shares outstanding at the beginning of last year. During the year, Golden Co. had net income $3,000,000 and incurred the following equity related activities:题目图片Based only on the information above, basic EPS is closest to:
  • A.$1.46.
  • B.$1.48.
  • C.$1.50.
38
1-38 Orange Company issued a 5-year bond with annual coupon rate of 5% and 1 million face value on Jan. 1, 2018. The bond was priced at 90% of its face value at issuance and the coupons are paid at year end. Regarding the relevant cash flow and book value of the bond:
  • A.the interest expense during 2019 is $67,230.
  • B.the discount amortized till Dec. 31 2019 is close to $35,732.
  • C.the book value of the bond payable on Dec. 31 2019 is $917,230.
39
1-39 JZ CO’s partial financial information is presented below:题目图片What is the operating cash flow of JZ.CO?
  • A.$1,900
  • B.$2,500
  • C.$2,300
40
1-40 Red Corporation incurred an expenditure of 10 million which qualifies for capitalization. Had this amount been expensed, the company would least likely have presented:
  • A.lower CFO but higher CFI.
  • B.lower EBIT.
  • C.lower debt-to-asset ratio.
41
1-41 During the purchase of new equipment for manufacturing plant,which of the following costs is leastlikely to be capitalized?
  • A.Testing
  • B.Staff training
  • C.Asset enhancement costs
42
1-42 There are three statements regarding the treatment of outliers as follows:Statement IIf the outliers are correct observations which carry meaningful and useful information, they may be kept without any adjustment for analysis.Statement IIData may be trimmed by excluding some of the lowest and highest values.Statement IIIOutliers may be substituted by some specific values.How many statements are correct?
  • A.1
  • B.2
  • C.3
43
1-43 The ANOVA table of a simple linear regression is given as follows:题目图片Based on the regression output, which of the following statements is least accurate?
  • A.The regression model, as a whole, approximately explains 15% of the variation in the dependent variable.
  • B.The correlation between the independent and dependent variables is about 0.92 if the slope coefficient of the independent variable is 1.20.
  • C.Higher indicates more explaining power of the independent variable.
44
1-44 Taken from a population with an unknown distribution and an unknown but finite variance, a sample of 100 observations has a mean of 20 and a variance of 6. The 95% confidence interval for the population mean is closest to:
  • A.19.52 to 20.48.
  • B.18.82 to 21.18.
  • C.17.55 to 22.45.
45
1-45Which of the following is not a feature of the common market?
  • A.Free flow of labor and capital goods among member countries
  • B.Common institutions and economic policy
  • C.Common trade policy against non-members
46
1-46 Given the following covariance matrix for two random variables X and Y, the correlation between them is closest to:题目图片
  • A.0.55.
  • B.0.66.
  • C.0.23.
47
1-47 Golden, Inc.’s net income for the year was $1,090,000 with 520,000 common shares outstanding. Golden has 2,000 shares of 6%, $1,000 par value convertible preferred stock that were outstanding the entire year and has 3,000 shares of 5%, $1,000 par value non-convertible preferred stock. Each preferred share is convertible into 50 common shares. Based only on the above information, Golden's diluted earnings per share is closest to:
  • A.$1.52.
  • B.$1.55.
  • C.$1.58.
48
1-48 The stated annual interest rates of fund Alpha and fund Beta are 4.73% and 5.22%, respectively. Fund Alpha is continuously compounded. If the effective annual rate of fund Alpha is lower than that of fund Beta by 0.5031%, fund Beta is compounding interest:
  • A.continuously.
  • B.monthly.
  • C.quarterly.
49
1-49 An economist is noticing the following:A narrowing spread between 10-year US Treasury yields and the federal funds rateA stable level of the prime rateBased on this information, the economist should most likelyforecast:
  • A.a fall in economic activity.
  • B.a stable economy.
  • C.a growth in economic activity.
50
1-50 An economist observed that the inventory-sales ratio has been rising and the industrial production index has decreased, it is most likely that a peak phase:
  • A.is just about to happen.
  • B.will happen in the near future.
  • C.has already occurred.
51
1-51 In international trade, a large importing country can:
  • A.benefit from applying tariffs on imports.
  • B.benefit from applying export subsidies.
  • C.not benefit from any trade restriction.
52
1-52 An analyst is wondering how to narrow the confidence interval for a population mean. Holding other factors constant, which of the following methods is least appropriate?
  • A.Using a t-distribution rather than a z-distribution.
  • B.Using a 95% confidence level rather than a 99% confidence interval.
  • C.Using a sample with smaller standard deviation.
53
1-53 According to the Fisher effect, which of the following statements is most likely accurate?
  • A.The nominal interest rate is stable over time.
  • B.The nominal interest rate is influenced by the expected rate of inflation.
  • C.The nominal interest rate is equal to the real risk-free rate minus the expected rate of inflation.
54
1-54 An analyst gathered the following data for a company:题目图片Total revenue during 2019 is closestto:
  • A.$18,000.
  • B.$30,000.
  • C.$32,000.
55
1-55 Under US GAAP, which of the following would most likelybe reported in the income statement, net of tax?
  • A.Costs to close plants and terminate employees
  • B.A gain from the sale of a product line
  • C.Income generated from a product line which is decided to be disposed of in the near term
56
1-56 Which of the following statements bestdescribes Giffen goods?
  • A.It has a downward sloping demand curve.
  • B.The income effect is greater than the substitution effect.
  • C.Giffen goods are not inferior goods.
57
1-57 The spot rate for the Japanese yen per CNY is 16.64. If the Chinese interest rate is 1.75% and the Japanese interest rate is 1.25%, the 6-month no-arbitrage forward rate is closestto:
  • A.16.60 JPY/CNY.
  • B.16.56 JPY/CNY.
  • C.16.72 JPY/CNY.
58
1-58 Golden Inc. chose the last-in, first-out (LIFO) method to value its inventory cost flow. Golden reported COGS of $17 million and $20 million respectively for the year 2018 and 2019. Ending balance of inventory was $6 million for the year 2018, and was $8 million for the year 2019. Golden’s accountant presented important information about LIFO reserve for 2019: If the company had used FIFO, the company would have report COGS of $16 million for the year 2019. The ending balance of LIFO reserve for the year 2018 was $2 million. Given the information, the ending balance of LIFO reserve for the year 2019 would most likelybe:
  • A.$6 million.
  • B.$4 million.
  • C.–$2 million.
59
1-59 Champagne Company uses LIFO to account for its inventories. The purchase cost of the inventories had been rising for the last decade. However, Champagne’s supplier did not raise the price due to contractual arrangements. Champagne is also thinking about gradually downsize this product line. As a result of this strategy, more inventory is sold than purchased during the year. Which impact is least likelyto occur?
  • A.Gross profit is improved compared with last year.
  • B.LIFO reserve disclosed is lower than last year.
  • C.Inventory turnover is higher than last year.
60
1-60 Green Company prepared its financial statements according to IFRS and recorded an inventory write-down of $100,000 in 2017. The net realizable value (NRV) of the inventory in question improved by $200,000 in Jan 2018. They were eventually sold during 2019. What is the impact of the change in NRV on 2018 financial statements?
  • A.COGS was $200,000 smaller than if the NRV didn’t change.
  • B.COGS was $100,000 smaller than if the NRV didn’t change.
  • C.COGS was not impacted.
61
1-61 Duringtheperiod of rising prices, compared to last-in, first out (LIFO) method, first in, first out (FIFO) method would mostlikely result in:
  • A.higher gross profit.
  • B.higher CFO.
  • C.higher inventory turnover.
62
1-62 The component most likely to be excluded in a measurement of gross domestic product (GDP) is:
  • A.the value of repairing a car by its owner.
  • B.the value of house rent occupied by its owner.
  • C.government payment to officials.
63
1-63 Grass Company has a piece of machine reported at $3 million on its balance sheet. The auditor gathered the following information: The machine can generate $1 million cash annually for the next 3 years. The market price for similar machine is $3 million, but the agent will charge 10% as commission. Which of the following statements regarding the impairment of the machine is most accurate?
  • A.No impairment loss should be recognized under US GAAP.
  • B.No impairment loss should be recognized under IFRS.
  • C.Impairment loss should be recorded under both US GAAP and IFRS.
64
1-64 Compared to a firm in a perfectly competitive market, the firm in a monopolistic competitive market has:
  • A.a more elastic demand curve.
  • B.higher economic profit in the long run.
  • C.less quantity produced in the long-run equilibrium.
65
1-65 In the long run, firms could not earn economic profits in the following market structures exceptfor:
  • A.monopoly.
  • B.perfect competition.
  • C.monopolistic competition.
66
1-66 AcompanycalledS-tripis a travellingagent and one of the S-trip’s core businesses is booking air tickets for customers. During the Christmas holiday in 2020, S-trip received $3 million from booking air tickets and then paid 85% of the receipts to airlines. Calculate S-trip’s revenue for booking tickets on its 2020 income statements.
  • A.$3 million
  • B.$0.45 million
  • C.$2.55 million
67
1-67 Company A enters into a three-year contract with company B for $50 million to build a bridge. The estimated total cost is $30 million. In the beginning of year two, both companies agree to change the bridge’s structure, so both contract price and total costs will increase. The following information is collected:题目图片The profit (in $) recognized in year 2 is closestto:
  • A.8 million.
  • B.9.5 million.
  • C.10 million.
68
1-68 A wealth manager provides financial advice for a client who requires cash for her son’s annual college tuition payment. The manager estimates the minimum required rate of return should be 6.5%. The following table shows the information of three available portfolios.题目图片Based on the Roy’s safety-first criterion, the most appropriateportfolio is:
  • A.Portfolio I.
  • B.Portfolio II.
  • C.Portfolio III.
69
1-69 Which of the following statements about the short-run supply function in a perfect competition market is correct?
  • A.Firm’s short-run supply curve is the marginal cost curve above the average total cost curve.
  • B.Firm’s short-run supply curve is the marginal cost curve above the average variable cost curve.
  • C.Firms do not have a well-defined short-run supply curve.
70
1-70 In a moderately inflationary market, compared with a periodic inventory system, a perpetual inventory system would most likely result in:
  • A.lower gross profit under FIFO.
  • B.higher gross profit under LIFO.
  • C.lower gross profit under LIFO.
71
1-71 To estimate the average salary for the graduates of Golden University, John randomly selected 10,000 graduates as a sample. The average monthly salary of those graduates is $8,000, and John concluded that the average monthly salary of all graduates is $8,000. Which property of estimators is mostrelevant to John’s conclusion?
  • A.Consistency
  • B.Unbiasedness
  • C.Efficiency
72
1-72 A bank has issued a financial instrument that promises to pay investors $1000, $2000, $3000 in the first three years, then $500 per year into perpetuity. All payments are made at the end of the year. Given a stated annual interest rate of 4.82%, the present value of this instrument is closestto:
  • A.$13,972.
  • B.$15,753.
  • C.$14,386.
73
1-73A company’s inventory turnover decreased last year. Which of the following would most likely be a possible reason for this trend?
  • A.The company didn’t keep adequate inventory.
  • B.The company wrote down the value of inventory at the beginning of the period because of obsolescence.
  • C.Customers placed smaller orders on the company’s products due to less demands.
74
1-74 Based on the following financial data, return on equity (ROE) in 2020 is closest to:题目图片
  • A.18%.
  • B.17.21%.
  • C.16.33%.
75
1-75 Solvency ratios gauge a company’s ability to pay all of the following exceptfor:
  • A.interest expenses.
  • B.long-term principal.
  • C.cash dividends.
76
1-76 An analyst gathered the following data for company A:题目图片Based on the data above, company A’s sustainable growth rate is closestto:
  • A.3.78%.
  • B.3.32%.
  • C.5.68%.
77
1-77 Which of the following statements is incorrect regarding different sampling methods?
  • A.Under cluster sampling, all the clusters are included and only certain elements within each cluster are sampled and then pooled into the whole sample.
  • B.Under judgmental sampling, an element is selected based on a sampler’s professional judgment. It is subjective, and thus the results may be skewed.
  • C.Under convenience sampling, an element is selected based on the convenience of accessibility. It is time-efficient and cost-effective but exhibits limited accuracy.
78
1-78 Under perfect competition, both firms produce 300 units of the same goods with different cost structures, the relevant data is showed as below:题目图片Which of the following statements is mostaccurate, if the unit selling price is set at:
  • A.6, both firms should stay in the market in the short run but exit in the long run if the condition does not change.
  • B.11, both firms should exit in the long run.
  • C.5, both firms should shut down in the short run.
79
1-79 Two analysts named Bob and Lily are discussing about properties of distributions after their Quantitative Methods class. They have made statements as follows:Bob: If a distribution is negatively skewed, then the mean, the median and the mode are not the same, among which the mean is the largest and the mode is the smallest amount.Lily: A distribution with kurtosis greater than 3 would generate more extreme outcomes than a normal distribution with an identical variance.Which of the following statements is correct?
  • A.Only one analyst has made a correct statement.
  • B.Both of the analysts made a correct statement.
  • C.Neither of the analysts made a correct statement.
80
1-80 Anton Elizabeth, the manager of a restaurant, wonders whether the average number of customers each day is 166. Anton collects the number of customers for the last 60 days as a sample with a mean of 150 and a standard deviation of 36. Given a 0.05 significance level, what hypotheses should she state and what's her conclusion?
  • A.H0: μ=166; Ha: μ≠166 and reject the null hypothesis.
  • B.H0: μ=166; Ha: μ≠166 and fail to reject the null hypothesis.
  • C.H0: μ≥166; Ha: μ<166 and reject the null hypothesis.
81
1-81 Lyndsay, CFA, is analyzing the properties of a sample which follows a t-distribution. As the degrees of freedom increase, which of the following statements is mostaccurate？
  • A.The standard deviation of the sample will get larger and approaches to 1 as a limit.
  • B.The standard deviation of the sample will get smaller and approaches to 1 as a limit.
  • C.The standard deviation of the sample will remain unchanged.
82
1-82 Cosmos Company is subject to 25% tax rate, and reported $100,000 for DTA and $150,000 for DTL. If the government approved of a rise in tax rate effective the next year, Cosmos would report:
  • A.only higher tax expense and higher DTA.
  • B.only higher tax expense and higher DTL.
  • C.higher DTA, DTL and tax expenses.
83
1-83 Plum Company has $5,000 income taxes payable this year and is subject to a statutory tax rate of 25%. Partial financial information of Plum is presented below:题目图片Plum’s 2019 net income isclosest to:
  • A.$5,000.
  • B.$10,000.
  • C.$15,000.
84
1-84 For the same test, the average score of class A is 80 and that of class B is 82. To test whether the difference of the average scores is significantly greater than 0 at a 0.05 significance level, an analyst can use a:
  • A.one-tailed t-test.
  • B.two-tailed chi-square test.
  • C.one-tailed z-test.
85
1-85 According to the money neutrality theory, in the long term, the money supplymost likelyaffects:
  • A.the real output.
  • B.the real rate of interest.
  • C.inflation expectations
86
1-86 Which of the following statements is most likelycorrect?Statement A: A higher probability of a Type I error will lead to a higher probability of a Type II error.Statement B: The probability of correctly accepting a true null hypothesis is called the power of a test.
  • A.Statement A
  • B.Statement B
  • C.Neither statement A nor B
87
1-87 Which type of the following cycle’s peaks and troughs are mostly recognized earlier than the others?
  • A.Growth cycle
  • B.Growth rate cycle
  • C.Classical cycle
88
1-88 Which of the following descriptions is not a feature of the growth cycle?
  • A.It breaks down the overall economic activity into different sectors driven by long-run tendency and short-run variations.
  • B.Compared to classical cycles, the troughs of the growth cycle are generally recognized earlier.
  • C.The durations below and above the trend growth are of a similar length.
89
1-89 A leading equity analyst gathers data about three stocks’ returns for four years shown below.题目图片The data in the table are best classified as:
  • A.panel data.
  • B.time-series data.
  • C.cross-sectional data.
90
1-90 Country A is experiencing an economic recession with a large number of people giving up looking for jobs. Holding the working-age population constant, what happens to the unemployment rate and participation ratio?题目图片
  • A.Choice A
  • B.Choice B
  • C.Choice C
91
2-1 Qi Zhu, CFA, an experienced credit analyst is assessing the soundness of management's current strategy and tracking management's execution of past strategies. Which one of the Four Cs is Zhu making judgement of?
  • A.Character
  • B.Collateral
  • C.Covenant
92
2-2 Whichof the following statements is most accurate regarding the asset-based valuation?
  • A.Asset-based valuation model uses estimates of the book value of the company’s assets and liabilities.
  • B.Assets values may be easier to estimate in the hyper-inflationary environment.
  • C.Asset-based valuation model is most applicable when the market value of the assets is readily determinable, and the intangible assets are a relatively small proportion of the assets.
93
2-3 A restaurant chain is considering setting up a new branch on a piece of land which it has already owned. Which of the following should be most likely considered related to incremental cash flow in the capital allocation for this restaurant?
  • A.Synergy between the new branch and the existing branch
  • B.Borrowing cost
  • C.Sunk cost of this project
94
2-4 Veronica is considering investing in alternative investments funds. She made the following statements and which statements is least accurate?
  • A.Alternative investments funds are always actively managed.
  • B.Return of alternative investments funds should be compared with the return of an appropriate market index.
  • C.Alternative investments funds managers always build concentrated portfolios.
95
2-5 Which of the following statements regarding risk measurement of an alternative investment ismostaccurate?
  • A.Standard deviation is a poor measurement of downside risk.
  • B.VaR is not an appropriate option to measure downside risk.
  • C.Past volatility is a good indicator of investment risk.
96
2-6 An analyst has collected the following information about stock X and market return:题目图片According to the capital asset pricing model (CAPM), the current stock price is:
  • A.overvalued.
  • B.undervalued
  • C.properly valued.
97
2-7 Which of the following statements regarding the assumptions of capital asset pricing model (CAPM) is least likely correct?
  • A.Investors are risk-neutral, irrational and utility-maximizing
  • B.There is no requirement of the minimal amount which investors should buy or sell in the market
  • C.Investors have to pay neither cost nor taxes for the investments.
98
2-8 Which of the following statements is most accurate about over-the-counter derivatives?
  • A.They are more transparent than exchange-traded derivatives.
  • B.Only the buyers face credit risk in the event of default.
  • C.Contract terms are customized to meet the counterparty’s needs.
99
2-9 The yield of Target Ltd.’s debt is 11%. The leverage ratio and the marginal tax rate are 3 and 30%, respectively. Comparable Inc., a firm running similar business, has a marginal tax rate of 35%, a debt-to-equity ratio of 2.0, and an equity beta of 1.3. The risk-free rate is 5% and the expected market risk premium is 10%. The cost of equity of Target Ltd. will be closestto:
  • A.12.00%.
  • B.10.61%.
  • C.18.56%.
100
2-10 In the binomial option pricing model, which of the following statements is most likelyto be correct？
  • A.The probability of the up and down moves is the actual probability.
  • B.The probability of the up and down moves is equal probability.
  • C.It is used to find a synthetic expected value, which is then discounted at the risk- free rate.
101
2-11 Theta Ltd. recently sold 10,000,000 units at $4,836 per unit. Variable operating costs are $7,570 million in total, and fixed operating costs are $30,590 million. If the costs of interest that Theta Ltd. bears are $285 million, the levels of sales at the breakeven point and operating breakeven point are, respectively:
  • A.$36,267 million and $36,605 million.
  • B.$36,605 million and $36,267 million.
  • C.$36,605 million and $37,570 million.
102
2-12 Gordon Finance has just issued a straight bond A priced at $98.5. And two more bonds B and C with embedded options will be issued priced at $97.5 and $101.2, respectively. If bond B and C have the same issuance conditions as bond A except for embedded options, which kind of bonds are most likely to be for bond B and C respectively?
  • A.Callable bond, Putable bond
  • B.Warrant, Convertible bond
  • C.Putable bond, Callable bond
103
2-13 Angel Zhou, CFA, wants to estimate the percentage price change when interest rate increases by 30 basis points. The modified duration is 5.8 and the convexity is 39. Thus, the percentage price change is closestto:
  • A.1.76%.
  • B.1.74%.
  • C.1.72%.
104
2-14 Which of the following statements is least likely to be a result of an effective corporate governance system?
  • A.Improved operating performance
  • B.Lower cost of debt
  • C.Less internal control in operating activities
105
2-15 Alice, an analyst, is exploring the reasons that cause the principal-agent problem between shareholders and creditors. Which of the following factors is most accurate?
  • A.Voting patterns
  • B.Risk tolerance
  • C.Dual-class
106
2-16 Which of the following statements is least accurate?
  • A.Business risk consists of operating risk and sales risk.
  • B.Degree of operating leverage is best described as a measure of the sensitivity of net income to changes in the number of units produced and sold.
  • C.If interest expense is greater than 0, degree of financial leverage is greater than 1
107
2-17 John, an analyst, wants to calculate a company’s degree of operating leverage (DOL) and degree of total leverage (DTL). He finds that if the company’s sales decrease by 15%, the earnings before interest and tax (EBIT) decreases by 30%. If EBIT decreases by 15%, the net income (NI) decreases by 20%. This company’s DOL and DTL will be closest to:
  • A.DOL: 2DTL: 2.67
  • B.DOL: 2DTL: 1.33
  • C.DOL: 1.33DTL: 2.67
108
2-18 The Apple Corporation has just paid a dividend of $2 per share. Its dividend is expected to grow indefinitely at a fixed rate of 4.5% per year. The dividend payout ratio is 40% per year and the required rate of return is 8% per year. What is the intrinsic value of the Apple Corporation?
  • A.$58.71
  • B.$59.71
  • C.$60.71
109
2-19 A listed Chinese company issued 6,000 non-callable, non-convertible perpetual preferred shares with $18 par value and 5.5% dividend of par value. Market participants requires minimum 4.5% rate of return while the observed market price of the stock is $23.7. This preferred stock is most likely:
  • A.overvalued.
  • B.undervalued.
  • C.fairly valued.
110
2-20 With regard to the equal weighting indexes, which of the following is mostaccurate?
  • A.The index is matched by investing equal dollar amount in each stock.
  • B.The index is matched by buying an equal number of shares of each security in the index.
  • C.The index value is the arithmetic average of security prices.
111
2-21 John, an analyst, is reviewing the investment strategy regarding ESG implementation approaches of Alfa Inc., and he found that Alfa Inc. actively invests in themes such as clean energy and green technology. This ESG implementation approach is most associated with:
  • A.thematic investing.
  • B.best-in-class.
  • C.negative screening.
112
2-22 Restaurant industry is most likely characterized by:
  • A.high barriers to entry and exit.
  • B.weak pricing power.
  • C.strong ability to quickly increase its capacity.
113
2-23 Which of the following descriptions is mostlycorrectregarding the relationship between a European option value and its value factors?
  • A.The higher the exercise price, the higher a call option value.
  • B.Put option with the longer time to expiration always have higher value.
  • C.The higher the cost on holding the underlying asset, the higher the value on call option.
114
2-24 Which of the following statements regarding the execution mechanism is most accurate?
  • A.Dealers trade by buying for or selling from their own inventory, providing liquidity for market.
  • B.Custodians buy assets, place them in a pool, and sell securities that represent ownership of the pool.
  • C.Securitizers buy and sell identical or similar instruments at different prices in different markets
115
2-25 Lorraine Liu, CFA, collects the spot rates except for the 2.5-year data. Her supervisor tells her the 6-month forward rate two years from now is 5.22%. What is the 2.5-year spot rate would she come up with?题目图片
  • A.6.00%
  • B.4.00%
  • C.3.00%
116
2-26 Suppose a five-year floating-rate note (FRN) pays three-month market reference rate (MRR) plus 2.5%. The current three-month MRR is 1.5%. Investors require 4.5% over the MRR because the issuer has been downgraded recently. The bond will be priced at:
  • A.premium.
  • B.par.
  • C.discount.
117
2-27 Which of the following statements is most accurateon the characteristicsof futures?
  • A.If a buyer gets a margin call, he\/she needs to deposit additional funds to bring his\/her balance up to the maintenance margin.
  • B.The clearinghouse engages in the mark-to-market process on a daily basis.
  • C.Settlement price is determined by the last futures trade of the day.
118
2-28 The minimum period before investors are allowed to redeem their shares from a hedge fund is called:
  • A.lockup period.
  • B.notice period.
  • C.open period.
119
2-29 A hedge fund manager longs a convertible bond and shorts its related stockto gain returns. Which strategy does the manager use?
  • A.Event-driven strategy
  • B.Marco strategy
  • C.Relative value strategy
120
2-30 Company X is a hedge fund with $200 million of initial capital. The company has a “2 and 20” fee structure and the incentive fee is based on returns greater than 8% hurdle rate. In its first year, Company X appreciates 16%. Suppose the management fee is calculated using end-of-period valuation. If the performance fee is calculated net of the management fee, the investor’s net return is closest to:
  • A.11.78%.
  • B.12.55%.
  • C.12.82%.
121
2-31 Which of the following statements is least likelycorrect, with regard of index return?
  • A.Price return measures only price appreciation or percentage change in price.
  • B.Total return measures price appreciation plus interest, dividends, and other distributions.
  • C.Total return is higher than price return at any time because it also reflects reinvestment of other income.
122
2-32 Which of the following is a characteristic of fixed-income indexes compared with equity indexes?
  • A.Broad universe
  • B.Low turnover
  • C.Broker market and illiquidity
123
2-33 Which of the following about peer groups is least accurate?
  • A.Building peer groups commonly starts from commercial classification system.
  • B.Comparison among companies experiencing difference stages of life cycle are challenging and lessmeaningful.
  • C.The higher percentage of revenue and operating profit derived from business activities similar to those of the subject company, the less meaningful the comparison is.
124
2-34 Anna Gu is a bond investment fund manager. Her fund is mainly composed of high-yield corporate bonds, including straight bonds, callable bonds, and convertible bonds. Which kind of measures is more suitable for estimating the interest rate risk of her bond portfolio under a stressed market?
  • A.Analytical duration
  • B.Effective duration
  • C.Empirical duration
125
2-35 Cedric Liu, CFA, tries to balance between different risks, regarding his bond portfolio. Which of the following statements is correct about Cedric’s consideration?
  • A.If Cedric’s duration gap is smaller than zero, he would mainly consider reinvestment risk.
  • B.If Cedric’s investment horizon is equal to modified duration, neither reinvestment risk nor market price risk needs to be considered.
  • C.If Cedric’s duration gap is larger than zero, an increasing interest rate would benefit him.
126
2-36 John is analyzing a profitable project with a conventional cash flow pattern. The cash flows are shown below:题目图片The opportunity cost of capital is 10 percent for this project. If the cash flows throughout the project life all double, John would most likely anticipate that:
  • A.the IRR would stay the same and the NPV would increase.
  • B.both the IRR and the NPV would increase.
  • C.both the IRR and the NPV would stay the same
127
2-37 Compared to the NPV approach, which of the following is least likely a disadvantage of the IRR approach?
  • A.The IRR approach assumes that all in-term cash flows can be reinvested at the IRR.
  • B.The IRR approach may have multiple IRR solutions.
  • C.The IRR provides insight about the expected return on the capital project.
128
2-38 Which of the following statements is most accurate?
  • A.A project with a higher NPV will always have a larger IRR.
  • B.If the return on invested capital (ROIC) is higher than the cost of capital (COC) of the upcoming project, the firm’s value for shareholders will increase.
  • C.Positive-NPV projects will not necessarily add value to the company.
129
2-39 Golden is investing $700 million in a new manufacturing plant. The present value of future after-tax cash flows of the project is estimated at $1,000 million. Currently, Golden has 100 million outstanding shares with a market price of $20.00 per share. Other factors unconsidered, the change of the stock price triggered by the announcement of the investment is closestto:
  • A.23.
  • B.30.
  • C.3.
130
2-40 Danika Chan is an industry analyst who is evaluating a new energy company. The company recently announced that it plans to initiate a hydrogen energy project. As a result of the announcement, the stock price rose by 15%. After detailed analysis, Ms. Danika concluded that the NPV of the project is indeed positive, though slightly lower than that expected by the market. Which of the following statements is most likelycorrect?
  • A.If Danika’s conclusion is justified by the market, the stock price should remain where it is.
  • B.Because the NPV is positive, the stock price should rise further.
  • C.If Danika’s conclusion is justified by the market, the stock price should move lower.
131
2-41 Alice is considering capital budget issues about two mutually exclusive projects, project 1 and project 2. The cash flows are shown below:题目图片For both projects, the required rate of return is 8 percent. Which of the following is most likely the final investment decision?
  • A.Invest in project 2 because of its higher NPV
  • B.Invest in project 1 because of its higher NPV
  • C.Invest in project 2 because of its higher IRR
132
2-42 Which of the following statements is most likelycorrect, with regard of information types?13Which of the following statements is most likelycorrect, with regard of information types?
  • A.Past market information includes only historical price information.
  • B.Public information includes financial statement date and financial market data.
  • C.Information could be categorized as past market information, public information and future information.
133
2-43 Fang learns about classification of market and writes down the following notes:·Investors could trade debt instruments maturing over 1 year in money market.·Alternative markets do not include any kind of investment ofpublic debts or equities.·Spot markets are the markets where investors could only invest in newly issued securities.How many notes are correct?
  • A.0
  • B.1
  • C.2
134
2-44 Which ofthe following isnot the main functions of the financial system?
  • A.Determining equilibrium rates of return.
  • B.Promoting capital allocation efficiency.
  • C.Eliminating transaction fees.
135
2-45 The data for three stocks in an index are shown below:题目图片Assuming the beginning value of the float-adjusted market-capitalization-weighted equity index is 100, the ending value is closestto:
  • A.105
  • B.110
  • C.118
136
2-46 Mary invested $10,000 in Garb Fund on 1 May 2017. On 30 April 2018, the one-year holding period return on her investment is 3.1% and she decided to invest $20,000 more. On 30 April 2019, the one-year holding period return is 2.9%. Comparing the time-weighted return (TWR) with the money-weighted return (MWR), which one is greater for the two-year holding period?
  • A.TWR is greater.
  • B.MWR is greater.
  • C.TWR and MWR are equal.
137
2-47 Anna, an equity analyst, is valuing Golden Corporation. She gathered the following financial information about Golden：题目图片Two days earlier,the management of Golden announced that they will change the capital structureto increase the debt-to-asset ratio to atarget ratio of 65%, and the before-tax cost of debt will rise to 8.7%.The cost of equity for Golden after the change of the capital structure under Modigliani-Miller Propositions with taxes will be closestto:
  • A.12.65%.
  • B.16.31%.
  • C.15.17%.
138
2-48 An investor considering the enterprise value approach to value a company gathers the following information:题目图片The enterprise value of the company is closestto:
  • A.$125 million.
  • B.$140 million.
  • C.$150 million.
139
2-49 An investor focuses on diversification of his portfolio and seeks to gain income streams at the same time. Which of the following investments is leastsuitable for him to add into the portfolio?
  • A.Timberland
  • B.Commodities
  • C.Farmland
140
2-50 According to the static trade-off theory of capital structure,which of the following is least likely correct?
  • A.At the optimal target capital structure, the tax shield benefit is exactly offset by the costs of financial distress.
  • B.A company has an optimal level of debt-to-equity ratio.
  • C.To find the optimal capital structure, a company balances the value of the tax benefit from deductibility of interests with the present value of the costs of financial distress.
141
2-51 Compared with the less risk-averse investor, a more risk-averse investor will choose an investment portfolio:
  • A.towards the upper right of the capital allocation line.
  • B.towards the bottom left of the capital allocation line.
  • C.to the left of the optimal risky portfolio.
142
2-52 If the optimal investor portfolio lies to the right of the optimal risky portfolio on the capital allocation line, the investor should:
  • A.invest all investable funds in the risk-free asset.
  • B.borrow money and construct a borrowing portfolio.
  • C.lend money and construct a lending portfolio.
143
2-53 Which of the following statements about option payoff and profit is most likely correct?
  • A.The potential profit of the short put is unlimited.
  • B.The potential payoff to a call buyer is limited.
  • C.The put buyer has a limited potential loss.
144
2-54 Which of the following options can be considered as out-of-the-money given that the underlying asset is currently trading at $45?
  • A.An American call option with strike price of $43 and option premium of $3.
  • B.A European put option with strike price of $42 and option premium of $4.
  • C.An American put option with strike price of $48 and option premium of $5.
145
2-55 A market has the following limit orders standing on its book for a particular stock:题目图片If a trader submits an immediate-or-cancel limit sell order for 500 shares at a price of $30, the most likely average price the trader would pay is:
  • A.$30.
  • B.$30.45.
  • C.$30.34.
146
2-56 Sagmeister, a bond portfolio manager of Kontrolliert Fund, is considering two bonds for his portfolio. Some information about these two bonds islisted in the following table. If Sagmeister wants to pick a bond with a higher annual yield-to-maturity stated on the same compounding frequency, which one would he choose?题目图片
  • A.Bond A
  • B.Bond B
  • C.The two options are equivalent.
147
2-57 Which five forces are identified by Porter as determinants of the intensity of competition in an industry?1. the threat of entry;2. the barriers to entry;3. the bargaining power of suppliers;4. the bargaining power of buyers;5. the threat of substitutes;6. the threat of complements;7. the rivalry among existing competitors.
  • A.1, 3, 4, 5, 7
  • B.2, 3, 4, 5, 7
  • C.2, 3, 4, 5, 6
148
2-58 Anna’s bond portfolio consists of the following two semi-annual fixed-rate bonds. Bond A, a three-year bond, has a Macaulay duration of 2.91. Bond B, a five-year bond, has a Macaulay duration of 4.51. Assuming no accrued interest, the portfolio’s modified duration isclosestto:题目图片
  • A.3.60.
  • B.3.67.
  • C.3.75.
149
2-59 In which step of the portfolio management process, does the portfolio manager need to develop the investment policy statement?
  • A.Planning
  • B.Execution
  • C.Feedback
150
2-60 With respect to the portfolio management, which of the following descriptions is least accurate?
  • A.The paired correlations of assets within a specific asset class should be high.
  • B.Strategic asset allocation adjusts the short time deviation from tactical asset allocation.
  • C.The review of IPS is conducted in the planning step of portfolio management process.
151
2-61 Lei purchased 1,000 shares of Shampo, Inc. at a price of $50 per share. The purchase was made on margin with an initial margin requirement of 40%. Assuming the maintenance margin is 20%, what will be the stock price when Lei receives a margin call?
  • A.$40.25
  • B.$37.5
  • C.$35
152
2-62 An investor is interested in taking a long position on a 60-day FRA on 90-day Libor. If he cannot find a financial instrument in the market to meet his need, which of the following strategies should he take?
  • A.He can long a 150-day Eurodollar time deposit and short a 60-day Eurodollar time deposit.
  • B.He can short a 150-day Eurodollar time deposit and long a 90-day Eurodollar time deposit.
  • C.He can long a 90-day Eurodollar time deposit and short a 60-day Eurodollar time deposit.
153
2-63 Assume that at time 0 Angel enters into a three-month forward contract. The current underlying price is $20, the three-month T-bill rate is 3% compounded annually, and the net cost of carry is $2. The three-month forward price will beclosestto:
  • A.$18.13.
  • B.$20.15.
  • C.$22.16.
154
2-64 In a best effort offering, the risk that the issue is undersubscribed is borne by the:
  • A.issuer.
  • B.investment bank.
  • C.buyers of new shares.
155
2-65 Regarding fixed-income markets, which of the following statements is correct?
  • A.A credit-linked note is an example of yield enhancement instruments.
  • B.The maturity of the medium-term notes is 5-10 years.
  • C.Under a shelf registration, an issuing company is obligated to offer the total authorized amount of bonds to the general public at once.
156
2-66 Until the committed capital is fully drawn down, a PE manager gets his management fee based on:
  • A.invested capital.
  • B.asset under management.
  • C.committed capital.
157
2-67 The provision that forces general partners to return back the incentive fees unless the limit partners have received a certain percentage of the total profit could be defined as:
  • A.claw back provision.
  • B.hurdle rate.
  • C.high water mark.
158
2-68 If a company seeks fund for the purpose of preparing initial public offering, which stage of financing the venture capital will the company most likely to invest?
  • A.Formative stage
  • B.Later stage
  • C.Mezzanine-stage
159
2-69 Richard, CFA, makes three statements regarding duration and convexity:Statement 1: Holding other factors equal and constant, bond B has a lower coupon rate than bond A, so the price of bond B will change less than the price of bond A when interest rate fluctuates.Statement 2: Jason allocates his money into bond A which offers cash flow more dispersed than bond B with the same duration does. Then Jason can benefit from bond A’s higher convexity.Statement 3: The price of a bond with a greater convexity will decrease more if the interest rate increases.How many of the statements are correct?
  • A.1
  • B.2
  • C.3
160
2-70 Which of the following statements is most correctregarding the put-call parity?
  • A.All things being equal, the difference between spot price of the underlying asset and the present value of the risk-free bond is the same as the difference between call value and put value.
  • B.A long of an underlying asset can be synthetically created by combining a long put, a short call, and a long bond.
  • C.A long call and a risk-free bond construct a synthetic call.
161
2-71 Which of the following real estate index is most reliable to measure real estate return?
  • A.REITs index is constructed using frequently traded REITs.
  • B.Appraisal index is assessed every month.
  • C.Transaction-based index is constructed on thinly traded properties.
162
2-72 Holding other factors constant, repo margin is higher when:
  • A.there is a higher demand for the collateral.
  • B.the borrower’s credit rating upgrades.
  • C.the repurchase agreement has a longer term.
163
2-73 The possibility of extreme events occurring may be underestimated using probability models. This risk is best defined as:
  • A.operational risk
  • B.tail risk.
  • C.market risk
164
2-74 According to the recent series of interest rate announcements by the Fed, Lily, a fund manager, believes that interest rate volatility will become greater in the future. Therefore, she is worried that mortgage pass-through securities (MPS) positions in her portfolio will be subject to more prepayment risks. If she wants to reduce the impact of prepayment risks as much as possible, it is best to adjust the MPS positions in her portfolio to:
  • A.the support tranches in a collateralized mortgage obligation structure.
  • B.the planned amortization class in a collateralized mortgage obligation structure.
  • C.the first tranche in a sequential-pay collateralized mortgage obligation structure.
165
2-75 Which of the following statements regarding the execution mechanism is most accurate?
  • A.Brokers provide liquidity in quote-driven markets.
  • B.Brokered markets are called over-the-counter markets.
  • C.Order-driven markets match buyers and sellers using order matching rules.
166
2-76 The benefits of securitization do not include:
  • A.lowering the funding costs for the borrowers.
  • B.offering more favorable risk-adjusted returns to the investors.
  • C.assuring the senior creditors of full payments under any circumstances.
167
2-77 A group of investors bought Bubble Co.’s bonds. Now they suffer from the company’s default. Which type of investors will have the highestrecovery rate?
  • A.Senior subordinated debt investors
  • B.Senior secured debt investors
  • C.Subordinated debt investors
168
2-78 Which of the following statements about accounts payable management isleastaccurate?
  • A.A new payment term which requires net payment within 30 days rather than 15 days provided by suppliers is a negative signal for the company.
  • B.An increase from 30 days in 2020 to 266 days in 2021 to pay trade creditors is most likely to be a negative signal.
  • C.If the number of days of accounts payables outstanding increases, the net operating cycle of the firm will decline.
169
2-79 SukeyHu, CFA, wants to buy a three-year bond to balance her portfolio. The bond offers a 4% coupon rate and pays interest annually. Given the following spot rates, the price of this bond is closest to:题目图片
  • A.102.59.
  • B.98.94.
  • C.105.53.
170
2-80 To hedge the interest rate risk, Company A enters into a plain vanilla interest rate swap with a fixed rate of 5% as a fixed-rate payer. At each settlement date:
  • A.if the floating rate is 5%, Company A suffers a loss.
  • B.if the floating rate is greater than 5%, Company A makes a payment to the counterparty.
  • C.if the floating rate is greater than 5%, Company A has a gain.
171
2-81 If the stock price of a Japanese company increases slowly after the public release of its better-than-expected earnings in the first quarter of 2020, itmost likelyindicates that the market where the company trades is:
  • A.weak form efficient.
  • B.semi-strong form efficient.
  • C.strong form efficient.
172
2-82 Which of the following is least accurate concerning characteristics of convertible preference shares?
  • A.Investors are not allowed to share the profits of the company.
  • B.Investors can benefit from a rise in the price of the stocks through the conversion option.
  • C.The price of convertible preference shares is less volatile than the underlying common shares because the dividend payments are known and more stable.
173
2-83 Consideringa defined benefit plan whichhasmanyemployers about to retire,which of the following situation is most likely to happen？
  • A.The plan has a high need for income and a high need for liquidity.
  • B.The plan has a high need for income and a low need for liquidity.
  • C.The plan has a low need for income and a low need for liquidity.
174
2-84 Alice, an analyst, wants to calculate the Target Ltd.’s weighted average cost of capital. Related information is shown below:题目图片Target Ltd. intends to maintain the current capital structure, its weighted average cost of capital will be closest to:
  • A.13.6%
  • B.10.13%
  • C.12%
175
2-85 A 10-year bond with a price of 85.279826 makes annual coupon payments at a coupon rate of 4%. The yield-to-maturity of the bond is 6%. The price value of a basis point of the bond is closestto:
  • A.0.0368.
  • B.0.0666.
  • C.0.0923.
176
2-86 A bond offers a coupon rate of 6% with interest paid on June 6th and December 6th. There are 183 days between the two dates. The modified duration of this bond is 7.6, and the flat price is 95. Today is August 8th, 63 days after the last coupon paying date, what is today’s money duration?
  • A.722
  • B.730
  • C.760
177
2-87 Which of the following situations will most likelylead to a wider credit yield spread?
  • A.Decreasing amount of newly-issued bonds and relatively unchanged market demand.
  • B.An unfavorable performance of the bond issuer’s financial report.
  • C.A strengthening economic cycle from the bottom.
178
2-88 Jada and Jason are choosing benchmarks for their yield spread related projects. Jada chooses a government spot curve while Jason focuses on the standard swap rate. Which spread will they most likelyuse in their projects respectively?
  • A.Jada uses Z-spread while Jason uses I-spread.
  • B.Jada uses G-spread while Jason uses OAS.
  • C.Jada uses G-spread while Jason uses I-spread.
179
2-89 An 8-year maturity bond with a price of 101 makes semiannual coupon payments at a coupon rate of 10%. According to the following table, the callable bond’s yield-to-worst is closest to:题目图片
  • A.9.44%.
  • B.9.82%.
  • C.13.73%.
180
2-90 Whichofthe following would least likely be classified as an emotional bias?
  • A.Lucy selects securities based on what she could call on in her memory.
  • B.Cathy values more of the securities in her portfolio than the securities she has not invested.
  • C.Jerry is too conservative in his investment choices as a result of poor outcomes in the past.