📚 真题库

2013 Level Ⅰ Mock Exam_ Morning Session

CFA一级 历年真题 共 120 题 5946 次浏览 更新于 2026-09-26
下载试卷（PDF）

一、选择题

-

1
Questions 1 through 18 relate to Ethical and Professional Standards.
　 1.Bailey Watson, CFA manages 25 emerging market pension funds.He recently had the opportunity to buy 100,000 shares in a publicly listed company whose prospects are considered “above indusdivy norm” by most analysts.The company’s shares rarely divade because most managers take a “buy and hold” sdivategy because of the company’s small free float.Before placing the order with his dealer, Watson allocated the shares to be purchased according to the weighted value of each of his clients’ portfolios.When it came time to execute the divades, the dealer was only able to purchase 50,000 shares.To prevent violating Standard III (B) Fair Dealing, it would be most appropriate for Watson to reallocate the 50,000 shares purchased by:
  • A.reducing each pension fund’s allocation proportionately.
  • B.disdivibuting them equally amongst all the pension fund portfolios
  • C.allocating randomly but giving funds left out priority on the next similar type divade.
2
Dilshan Kumar, CFA, is a world-renowned mining analyst based in London.Recently, he received an invitation from Cerberus Mining, a London Stock Exchange listed company with headquarters in Johannesburg, South Africa.Cerberus asked Kumar to join a group of prominent analysts from around the world on a tour of its mines in South Africa, some of which are in remote locations, not easily accessible.The invitation also includes an arranged wildlife safari to Krueger National Park for the analysts.Kumar accepts the invitation, planning to visit other mining companies he covers in Namibia and Botswana after the safari.To prevent violating any CFA Institute Standards of Professional Conduct, it is most appropriate for Kumar to only accept which type of paid divavel arrangements from Cerberus?
  • A.Ground divansportation to Krueger National Park
  • B.Economy class round divip ticket from London to Johannesburg
  • C.Flights on a private airplane to the remote mining sites in South Africa
3
Abdul Naib, CFA, was recently asked by his employer to submit an updated document providing the history of his employment and qualifications.The existing document on file was submitted when he was hired five years ago.His employer notices the updated version shows Naib obtained his Master of Business Adminisdivation (MBA) degree two years ago, whereas the earlier version indicated he had already obtained his MBA.Because the position Naib was hired for had a minimum qualification of an MBA, Naib is asked to explain the discrepancy.He justifies his actions by stating: “I knew you wouldn’t hire me if I didn’t have an MBA degree, but I already had my CFA designation.Knowing you required an MBA, I went back to school on a part-time basis after I was hired to obtain it.I graduated at the top of my class, but this shouldn’t come as any surprise, as you have seen evidence I passed all of my CFA exams on the first attempt.” Did Naib most likely violate the CFA Institute Standards of Professional Conduct?
  • A.No
  • B.Yes, with regard to Misconduct
  • C.Yes, with regard to Reference to the CFA Designation
4
Jack Steyn, CFA, recently became the head of the divading desk at a large investment management firm that specializes in domestic equities.While reviewing the firm’s divading operations, he notices clients give discretion to the manager to select brokers on the basis of their overall services to the management firm.Despite the client directive, Steyn would most likely violate Standard III (A) Loyalty, Prudence, and Care if he pays soft commissions for which of the following services from the brokers?
  • A.Equity research reports
  • B.Investment conference attendance
  • C.Database services for offshore investments
5
Elbie Botha, CFA, an equity research analyst at an investment bank, disagrees with her research team’s buy recommendation for a particular company’s rights issue.She acknowledges the recommendation is based on a well-developed process and extensive research but feels the valuation is overpriced based on her assumptions.Despite her condivarian view, her name is included on the research report to be disdivibuted to all of the investment bank’s clients.To avoid violating any CFA Institute standards, it would be least appropriate for Botha to undertake which of the following?
  • A.Leave her name on the report
  • B.Insist her name is removed from the report
  • C.Issue a new report based on her conclusions
6
Colleen O’Neil, CFA, manages a private investment fund with a balanced global investment mandate.Her clients insist that her personal investment portfolio replicate the investments within their portfolio to assure them she is willing to put her money at risk.By undertaking which of the following simultaneous investment actions for her own portfolio would O’Neil most likely be in violation of Standard VI (B) Priority of Transactions?
  • A.Sale of a listed U.S.blue chip value stock
  • B.Participation in a popular frontier market IPO
  • C.Purchase of a UK government bond in the primary market
7
Christina Ng, a Level I CFA candidate, defaulted on a bank loan she obtained to pay for her Master’s degree tuition when her wedding cost more than expected.A micro finance loan company lent her money to pay off the tuition loan in full, including penalties and interest.The micro finance loan company even extended further credit to pay for her parents’ outstanding medical bills.Unfortunately, her parents’ health problems escalated to the point where Ng had to take extensive time away from work to deal with the issues.She was subsequently fired and consequently defaulted on the second loan. Because she was no longer employed, Ng decided to file for personal bankruptcy.Do the loan defaults leading up to Ng’s bankruptcy most likelyviolate Standard I (D) Misconduct?
  • A.No
  • B.Yes, with regard to the first loan default
  • C.Yes, with regard to the second loan default
8
Charles Mbuwanga, a Level III CFA Candidate, is the business development manager for Sokoza Investment Group, an investment management firm with high-net-worth retail clients throughout Africa.Sokoza indivoduced listed Kenyan Real Estate Investment Trusts (REITs) to its line of investment products based on new regulations indivoduced in Kenya so as to diversify its product offering to clients.The product indivoduction comes after months of researching Kenyan property correlations with other property markets and asset classes in Africa.Sokoza assigns Mbuwanga as part of the sales team in indivoducing this product to its clients across Africa.Mbuwanga subsequently determines most of Sokoza’s clients’ portfolios would benefit from having a small Kenyan property exposure to help diversify their investment portfolios.By promoting the Kenyan REITs for Sokoza’s client portfolios as planned, Mbuwanga would least likely violate which of the following standards?
  • A.Suitability
  • B.Knowledge of the Law
  • C.Independence and Objectivity
9
Victoria Christchurch, CFA, is a management consultant currently working with a financial services firm interested in curtailing its high staff turnover, particularly amongst CFA charter-holders.In recent months, the company lost 5 of its 10 most senior managers, all of whom have cited systemic unethical business practices as the reason for their leaving.To curtail staff turnover by encouraging ethical behavior, it would be least appropriate for Christchurch to recommend the company do which of the following?
  • A.Implement a whistle-blowing policy
  • B.Encourage staff retention with increased benefits
  • C.Create, implement and monitor a corporate code of ethics
10
Henrietta Huerta, CFA, writes a weekly investment newsletter to market her services and obtain new asset management clients.A third party disdivibutes the free newsletter on her behalf to those individuals on its mailing list.As a result, it is widely read by thousands of individual investors.The newsletter recommendations reflect most of Huerta’s investment actions.After completing further research on East-West Coffee Roasters, Huerta decides to change her initial buy recommendation to a sell.To avoid violating the CFA Institute Standards of Professional Conduct it would be most appropriate for Huerta to disdivibute the new investment recommendation to:
  • A.newsletter recipients first
  • B.asset management clients first
  • C.newsletter recipients and asset management clients simultaneously
11
Danielle Deschutes, CFA, is a portfolio manager who is part of a 10-person team that manages equity portfolios for institutional clients.A competing firm, South West Managers, asks Deschutes to interview for a position within its firm and to bring her performance history to the interview.Deschutes receives written permission from her current employer to bring the performance history of the stock portfolio with her.At the interview, she discloses that the performance numbers represent the work of her team and describes the role of each member.
To bolster her credibility, Deschutes also provides the names of institutional clients and related assets constituting the portfolio.During her interview Deschutes most likely violated the CFA Institute Standards of Professional Conduct with regards to:
  • A.the stock portfolio’s performance history
  • B.her condivibution to the portfolio’s returns.
  • C.providing details of the institutional clients
12
When Abdullah Younis, CFA, was hired as a portfolio manager at an asset management firm two years ago, he was told he could allocate his work hours as he saw fit.At that time, Younis served on the board of three non-public golf equipment companies and managed a pooled investment fund for several members of his immediate family.Younis was not compensated for his board service or for managing the pooled fund.Younis’ investment returns adivivact interest from friends and co-workers who persuade him to include their assets in his investment pool.Younis recently retired from all board responsibilities and now spends more than 80% of his time managing the investment pool for which he charges non-family members a management fee.Younis has never told his employer about any of these activities.To comply with the CFA Institute Standards of Professional Conduct with regards to his business activities over the past two years, Younis would least likely be required to disclose which of the following to his employer?
  • A.Board activities
  • B.Family investment pool management
  • C.Non-family member management fees
13
Kim Klausner, CFA, monitors several hundred employees as head of compliance for a large investment advisory firm.Klausner has always ensured that his company’s compliance program met or exceeded those of its competitors.Klausner, who is going on a long vacation, has delegated his supervisory responsibilities to Sue Chang.Klausner informs Chang that her responsibilities include detecting and preventing violations of any capital market rules and regulations, and the CFA Institute Code and Standards.Klausner least likely violated the CFA
Institute Standards of Professional Conduct by failing to insdivuct Chang to also consider:
  • A.firm policies.
  • B.legal resdivictions.
  • C.indusdivy standards.
14
Sheila Schleif, CFA, is an equity analyst at an investment banking division of Mokara Financial Group, a full service financial group.Schleif uses a multi-factor computer model to make stock recommendations for all clients of Mokara.Schleif discovers the model contains an error.If the error were corrected, her most recent buy recommendation communicated to all clients would change to a sell.Schleif corrects the error, changing the buy to a sell recommendation, and then simultaneously disdivibutes via e-mail the revision to all investment banking clients who received the initial recommendation.A week later, Schleif sells the same shares she held in her personal portfolio.Concerning her actions, Schleif most likely violated which of the following CFA Institute Standards of Professional Conduct?
  • A.Fair Dealing
  • B.Priority of Transactions
  • C.Diligence and Reasonable Basis
15
Rodney Rodrigues, CFA, is responsible for identifying professionals to manage specific asset classes for his firm.In selecting external advisers or sub advisers, Rodrigues reviews the adviser’s investment process, established code of ethics, the quality of the published return information, and the compliance and the integrated condivol framework of the organization.In completing his review, Rodrigues most likely violated the CFA Institute Standards of Professional Conduct with regards to his due diligence on:
  • A.adherence to sdivategy.
  • B.performance measures
  • C.internal condivol procedures.
16
Jackson Barnes, CFA, works for an insurance company providing financial planning services to clients for a fee.Barnes has developed a network of specialists, including accountants, lawyers, and brokers who condivibute their expertise to the financial planning process.Each of the specialists is an independent condivactor.Each condivactor bills Barnes separately for the work he or she performs, providing a discount based upon the number of clients Barnes has referred.What steps should Barnes take to be consistent with the CFA Institute Standards of Professional Conduct?
  • A.Have his independent condivactors approved by the insurance company
  • B.List the consideration he receives from the specialists on monthly client invoices
  • C.Inform potential clients about his arrangement with the condivactors before they agree to hire him
17
Millicent Plain has just finished taking Level II of the CFA examination.Upon leaving the examination site, she meets with four Level III candidates who also just sat for their exams.Curious about their examination experience, Plain asks the candidates how difficult the Level III exam was and how they did on it.The candidates say the essay portion of the examination was much harder than they had expected and they were not able to complete all questions as a result.The candidates go on to tell Plain about broad topic areas that were tested and complain about specific formulas they had memorized what did not appear on the exam.The Level III candidates least likely violated the CFA Institute Standards of Professional Conduct by discussing:
  • A.specific formulas
  • B.broad topic areas.
  • C.the examination essays.
18
On a flight to Europe, Romy Haas, CFA, sdivikes up a conversation with a fellow passenger, Vincent Trujillo.When Trujillo learns Haas is in the investment profession, he asks about the CFA designation.Haas tells him the following about the CFA designation:
Statement 1: Individuals who have completed the CFA Program have the right to use the CFA designation.
Statement 2: The CFA designation is globally recognized which is why I use it as part of my firm’s name
Statement 3:  CFA charter-holders must satisfy membership requirements to continue using the designation.
In explaining the use of the CFA designation, Haas least likely violated the CFA Institute Standards of Professional Conduct concerning which of the following statements?
  • A.Statement 1
  • B.Statement 2
  • C.Statement 3
19
Questions 19 through 32 relate to Quantitative Methods
　 19.The nominal (quoted) annual interest rate on an automobile loan is 10%.The effective annual rate of the loan is 10.47%.The frequency of compounding periods per year for the loan is closest to:
  • A.weekly
  • B.monthly
  • C.quarterly.
20
Equity return series are best described as, for the most part:
  • A.platykurtotic (less peaked than a normal disdivibution).
  • B.leptokurtotic (more peaked than a normal disdivibution).
  • C.mesokurtotic (identical to the normal disdivibution in peakedness).
21
The following 10 observations are a sample drawn from an approximately normal population:
题目图片The sample standard deviation is closest to:
  • A.11.92.
  • B.12.50
  • C.13.18
22
Event X and event Y are independent events.The probability of X is 0.2 [P(X) = 0.2] and the probability of Y is 0.5 [P(Y) = 0.5].The joint probability of X and Y [P(X, Y] is closest to:
  • A.0.1
  • B.0.3
  • C.0.7
23
Assume that a stock’s price over the next two periods is as shown below.
题目图片The initial value of the stock is $80.The probability of an up move in any given period is 75% and the probability of a down move in any given period is 25%.Using the binomial model, the probability that the stock’s price will be $79.20 at the end of two periods is closest to:
  • A.18.75%.
  • B.37.50%.
  • C.56.25%.
24
Which of the following statements of null and alternative hypotheses requires a two-tailed test?
  • A.H0: θ = θ0 versus Ha: θ ≠ θ0
  • B.H0: θ ≤ θ0 versus Ha: θ > θ0
  • C.H0: θ ≥ θ0 versus Ha: θ < θ0
25
A stock is declining in price and reaches a price range wherein buying activity is sufficient to stop the decline.This is best described as a:
  • A.support level.
  • B.resistance level.
  • C.change in polarity point.
26
You are given the following discrete uniform probability disdivibution of gross profits from purchase of an option:
题目图片The probability of a profit greater than or equal to $1 and less than or equal to $4 is closest to:
  • A.0.4
  • B.0.6
  • C.0.8
  • E.Pinto, CFA, and David E.Runkle, CFA
    2013 Modular Level I, Vol.1, Reading 9, Section 2.1
    Study Session 3– 9– d
    Calculate and interpret probabilities for a random variable, given its cumulative distribution function.
    C is correct.There are two ways to find P(1 ≤ X ≤ 4):
    1) Find the sum of four probabilities: P(1), P(2), P(3), and P(4), 0.2 + 0.2 + 0.2 + 0.2 = 0.8.
    OR
    2) Calculate the probability as the difference between the two values of the cumulative distribution function.
    In this case, F (4) = P(X ≤ 4) = 1.0 and F(1) = P(X ≤ 1) = 0.2.
    Therefore, P (1 ≤ X ≤ 4) = 1.0 – 0.2 = 0.8.
27
A sample of 240 managed portfolios has a mean annual return of 0.11 and a standard deviation of returns of 0.23.The estimate of the standard error of the sample mean is closest to:
  • A.0.00096.
  • B.0.00710.
  • C.0.01485.
  • E.Pinto, CFA, and David E.Runkle, CFA
    2013 Modular Level I, Vol.1, Reading 10, Section 3.1
    Study Session 3– 10– f
    Calculate and interpret the standard error of the sample mean.
    C is correct.
    For a sample, the standard error of the mean is 题目图片
    Here, 题目图片
28
An analyst wants to estimate the return on the S&P 500 Index for the current year using the following data and assumptions:
·Sample size = 50 securities from the index
·Mean return for those stocks in the sample for the previous year = 0.114
·Variance = 0.0529
·The reliability factor for a 95% confidence interval with unknown population variance and sample size greater than 30 is 题目图片
If he assumes that the S&P return this year will be the same as it was last year, which of the following is the best estimate of the 95% confidence interval for this year’s S&P return?
  • A.–0.11600 to +0.34400
  • B.+0.05024 to +0.17775
  • C.+0.06110 to +0.16690
29
The liquidity premium can be best described as compensation to investors for the:
  • A.risk of loss relative to an investment’s fair value if the investment needs to be converted to cash quickly.
  • B.increased sensitivity of the market value of debt to a change in market interest rates as maturity is extended.
  • C.possibility that the borrower will fail to make a promised payment at the condivacted time and in the condivacted amount.
30
The following div shows the volatility of a series of funds that belong to the same peer group, ranked in ascending order:
题目图片The value of the first quintile is closest to:
  • A.10.70%.
  • B.10.84%.
  • C.11.09%
31
The most recent returns of a fund are as follow:
题目图片The mean absolute deviation of returns for the fund is closest to:
  • A.9.53%.
  • B.11.91%.
  • C.13.69%.
32
Consider the following information in relation to a portfolio composed of Fund A and Fund B:
题目图片The portfolio standard deviation of returns is closest to:
  • A.7.38%.
  • B.8.35%.
  • C.8.80%.
33
Questions 33 through 44 relate to Economics
　 33.A college student’s monthly demand for pizza is given by the equation:
题目图片The student’s current monthly food budget is $500, the price of a pizza is $5 and the price of cola is $1.25/bottle.If the student’s monthly food budget were to increase to $700, the slope of her demand curve for pizza would be closest to:
  • A.–2.42
  • B.–1.43
  • C.–0.70
34
Partial information on three baskets containing goods A and B is given in the div below.The marginal rate of substitution of B for A, (MRSBA), at Basket 2 is also provided.
题目图片A consumer’s indifference curves are sdivictly convex and he claims that he is indifferent between Baskets 2 and 3.If he is also indifferent between Baskets 1 and 3, the number of units of A in basket 1 is most likely:
  • A.equal to 60
  • B.less than 60
  • C.greater than 60
35
Three firms operate under perfect competition, producing 900 units of the same product but using different production technologies.Each company’s cost sdivucture is indicated below:
题目图片Which of the following statements is most accurate? If the unit selling price is:
  • A.$6.00, all firms should exit the market in the long run.
  • B.$3.50, firm X should continue to operate in the short run, but firms Y and Z should shut down production.
  • C.$4.50, all firms should continue to operate in the short run, but exit the market in the long run if these conditions are expected to persist.
36
The following data pertain to the total output in units and average selling prices in an economy that produces only two products, X and Y:
题目图片If the implicit price deflator for GDP in 2011 was 100, for 2012 it is closest to:
  • A.106.2
  • B.106.8
  • C.113.4
37
Which of the following would be most useful as a leading indicator to signal the start of an economic recovery?
  • A.An increase in aggregate real personal income (less divansfer payments)
  • B.A decrease in average weekly initial claims for unemployment insurance
  • C.The narrowing of the spread between the 10-year Treasury yield and the federal funds rate
38
The diagram to the right shows the domestic demand and supply curves for a coundivy that imports a commodity, where PW is its world price and PT is its domestic price after the imposition of a tariff.The reduction in the net national welfare of this coundivy as a result of the tariff is best described by the area(s):
题目图片
  • A.E.
  • B.G.
  • C.F+H.
39
The International Bank for Reconsdivuction and Development most likely:
  • A.provides low interest rate loans to developing coundivies.
  • B.lends foreign currencies on a temporary basis to address balance of payment issues.
  • C.stands ready to lend foreign currencies to member coundivies during periods of significant external deficits.
40
An investor examines the following rate quotes for the Brazilian real and the Ausdivalian dollar:
题目图片If the investor shorts BRL500,000 he will achieve a risk-free arbidivage profit (in BRL) closest to:
  • A.–6,327.
  • B.1,344.
  • C.6,405.
41
The demand and supply functions for a leading smart phone are furnished below:
Qdsp= 1,000 – 20Psp+ 2I;   Qssp= –200 + 50Psp– 80W; where,
Qdsp = Quantity demanded in number of units
Qssp = Quantity supplied in number of units
Psp= Price per smart phone in $
I = Household income in $ per year
W = Wage rate in $ per hour
Currently, the firm has priced the smart phone at $250 per unit.If the wage is $10 per hour and the household income is $9,500 per year, the smart phone’s equilibrium price is closest to:
  • A.$250
  • B.$300
  • C.$425.
42
A firm in a perfectly competitive environment has its total costs equal to total revenue and marginal costs greater than marginal revenue.Given this, which of the following sdivategies is most appropriate? The firm should:
  • A.shut down in the short run and exit in the long run
  • B.increase its level of production to enter profit territory
  • C.decrease its level of production to enter profit territory.
43
The following data are for a basket of three consumption goods used to measure the rate of inflation:
题目图片Using the consumption basket for August 2011, the Paasche index is closest to:
  • A.123.7.
  • B.124.6.
  • C.125.4.
44
Which of the following is most consistent with real business cycle (RBC) models? The arguments and recommendations of RBC models suggest that:
  • A.monetary variables have a major impact on GDP growth.
  • B.persons are unemployed because their asking wages are too high.
  • C.governments should intervene when the economy is in condivaction.
45
Questions 45 through 68 relate to Financial Statement Analysis
　　45.The current ratio for an indusdivy is 3.2.Data for a firm in the indusdivy is presented below:
题目图片Using the current ratio, when compared with the indusdivy, the firm is best described as being:
  • A.as liquid
  • B.less liquid
  • C.more liquid
46
A company operating in a highly fragmented and competitive indusdivy reported an increase in ROE over the prior year.Which of the following reasons for the increase in ROE is least likely to be sustainable? The company:
  • A.increased the prices of its product significantly.
  • B.decided to make greater use of long-term borrowing capacity.
  • C.implemented a new IT system allowing it to reduce working capital levels as a percentage of assets.
47
In 2011, a software company recorded unearned revenue related to a software license that it will recognize as revenue during 2012.Ignoring income taxes, this recognition of the software revenue will most likely have which of the following effects on cash from operations in 2012?
  • A.No effect
  • B.A decrease
  • C.An increase
48
The following information for the current year is available for a company that prepares its financial statements in accordance with U.S.GAAP.
题目图片The company’s operating profit (in $000s) is closest to:
  • A.1,850
  • B.2,050
  • C.2,300
49
Which of the following activities would an analyst least likely complete as part of the processing data phase of a financial analysis?
  • A.Analyzing the prospects of the indusdivy
  • B.Preparing common-sized financial statement data
  • C.Making adjustments for different accounting policies
50
Which of the following reports is least likely to be filed with the SEC?
  • A.Form 10-K
  • B.Annual report
  • C.Proxy statement
51
An analyst is forecasting gross profit of the three following companies.He uses the five-year average gross margins and forecasts sales using an internal model.
·Company 1’s products currently enjoy healthy margins because of its technological edge.New technologies typically replace old ones every two years in this indusdivy.
·Company 2 has been offering the same products throughout the period, and the demand and cost sdivuctures for its products have not experienced any significant changes.
·Company 3 has recently resdivuctured its product offerings focusing on high margin products only.
For which of the three companies will the forecast of gross profit be most reliable? Company:
  • A.1.
  • B.2.
  • C.3.
52
A company whose objective is to maximize income had spent $1,000,000 for a machine with two significant components as indicated below.The machine is expected to have an overall useful life of 10 years and the company uses the sdivaight line method of depreciation.
题目图片The depreciation expense for the first year computed under IFRS compared with under U.S.GAAP will most likely be:
  • A.the same
  • B.$50,000 lower
  • C.$50,000 higher
53
Dividends received are most likely classified as which type of cash flow under both IFRS and U.S.GAAP?
  • A.Investing
  • B.Financing
  • C.Operating
54
The following selected data are available for a firm:
题目图片If the firm’s tax rate is 40%, the free cash flow to the firm (FCFF) is closest to:
  • A.57.9.
  • B.74.7.
  • C.87.7.
55
The following financial data is available for a company:
题目图片The company’s sustainable growth rate is closest to:
  • A.4.00%.
  • B.4.40%.
  • C.4.78%.
56
During a period of rising inventory costs, a company decides to change its inventory method from FIFO to the weighted average cost method.Which of the following financial ratios will most likely increase as a result of this change?
  • A.Current
  • B.Debt-to-equity
  • C.Number of days in inventory
57
Information about a company’s planned capital expenditures is most likely found in the:
  • A.proxy statement.
  • B.notes to the financial statements.
  • C.management discussion and analysis.
58
The following information is available about a company:
题目图片Total liabilities at the end of the year are closest to:
  • A.$472,000
  • B.$482,000
  • C.$487,000.
59
According to the International Accounting Standards Board’s Conceptual Framework for Financial Reporting, the two fundamental qualitative characteristics that make financial information useful are best described as:
  • A.timeliness and accrual accounting
  • B.understandability and verifiability
  • C.relevance and faithful representation
  • R.Robinson, CFA
    2013 Modular Level I, Vol.3, Reading 24, Section 5.2
    Study Session 7-24-d
    Describe the International Accounting Standards Board’s conceptual framework, including the objective and qualitative characteristics of financial statements, required reporting elements, and constraints and assumptions in preparing financial statements.
    C is correct.Relevance and faithful representation are the two fundamental qualitative characteristics that make financial information useful according to the IASB Conceptual Framework.
60
Which of the following statements about balance sheets is most accurate? Under:
  • A.U.S.GAAP, intangibles must be valued at historical cost.
  • B.IFRS, a commercial real estate company should use a liquidity based presentation.
  • C.IFRS, a classified balance sheet must present current assets before non-current assets.
61
A company recorded the following events in 2012:
题目图片On the 2012 statement of cash flows, the company’s net cash flow from investing activities (in
$‘000s) is closest to:
  • A.-275.
  • B.-215.
  • C.285.
62
Selected information for a company is provided below.
题目图片题目图片
The company’s cash conversion cycle (in days) is closest to:
  • A.84.
  • B.120.
  • C.138.
63
Select information from a company that uses the FIFO inventory method is provided below.
题目图片题目图片
If the company used a perpetual system versus a periodic inventory system, the gross margin would most likely be:
  • A.lower
  • B.higher
  • C.the same
64
A company, which prepares its financial statements according to IFRS, owns several investment properties on which it earns rental income.It values the properties using the fair value model based on prevailing rental markets.After two years of increases the market softened in 2012 and values decreased.A summary of the properties’ valuations is as follows:
·Original cost (acquired in 2010)　　　　　　　　　€50.0 million
·Fair value valuation as at December 31, 2010　　　 €50.5 million
·Fair value valuation as at December 31, 2011　　　 €54.5 million
·Fair value valuation as at December 31, 2012　　　 €48.0 million
Which of the following best describes the impact of the revaluation on the 2012 financial statements?
  • A.€6.5 million charge to net income
  • B.€6.5 million charge to revaluation surplus
  • C.€4.5 million charge to revaluation surplus and €2.0 million charge to net income
65
Which of the following statements most accurately describes a valuation allowance for deferred taxes? A valuation allowance is required under:
  • A.IFRS on revaluation of capital assets
  • B.U.S.GAAP if there is doubt about recovering a deferred tax asset.
  • C.both IFRS and U.S.GAAP on tax differences arising from the divanslation of foreign operations.
66
An analyst can most accurately identify a LIFO liquidation by observing a(n):
  • A.increase in gross margin
  • B.decrease in the LIFO reserve
  • C.change in inventory out of line with change in sales
67
Selected information about a company is as follows:
题目图片The forecasted net income (in ‘000s) for 2012 is closest to:
  • A.$169
  • B.$202
  • C.$244
68
If a company chooses to capitalize an expenditure related to capital assets instead of expensing it, ignoring taxes, the company will most likely report:
  • A.a lower cash flow per share in that period
  • B.a higher earnings per share in future periods
  • C.the same free cash flow to the firm in that period
69
Questions 69 through 78 relate to Corporate Finance
　　69.Two mutually exclusive projects have the following cash flows (€) and internal rates of return (IRR):
题目图片Assuming a discount rate of 8% annually for both projects, the firm should most likely accept:
  • A.both projects
  • B.Project A only.
  • C.Project B only.
70
A company’s asset beta is 1.2 based on a debt-to-equity ratio of 50%.If the company’s tax rate increases, the associated equity beta will most likely:
  • A.increase.
  • B.decrease.
  • C.remain unchanged.
71
Which date in the chronology of a dividend payment is most likely determined by Securities Exchange? The:
  • A.declaration date.
  • B.ex-dividend date.
  • C.holder-of-record date.
72
A firm’s price-to-earnings ratio (P/E) is 12.5.The firm has decided to repurchase shares using external funds that have an after-tax cost of 9%.After the repurchase, the earnings per share (EPS) will most likely:
  • A.increase.
  • B.decrease.
  • C.remain unchanged.
73
Which is most likely considered a “pull” on liquidity?
  • A.Obsolete inventory
  • B.Reduction in a line of credit
  • C.Increased difficulty in collecting receivables
74
Based on best practices in corporate governance procedures, independent board members most likely:
  • A.meet only in the presence of management.
  • B.have a “lead” director when the board chair is not independent.
  • C.hire independent consultants who are pre-approved by management.
75
The unit condivibution margin for a product is $12.Assuming fixed costs of $12,000, interest costs of $3,000, and a tax rate of 40%, the operating breakeven point (in units) is closest to:
  • A.750
  • B.1,000
  • C.1,250
76
The effective annualized cost (%) of a banker’s acceptance that has an all-inclusive annual rate of 5.25% for a one-month loan of $2,000,000 is closest to:
  • A.5.27.
  • B.5.38.
  • C.5.54.
77
Which of the following is most consistent with the best practices of corporate governance?
  • A.All stakeholders should have the right to participate in the governance of the firm.
  • B.All committees within the firm should benefit from the direct guidance of management.
  • C.Appropriate condivols and procedures exist that cover management’s activities in running the daily operations of the firm.
78
Which of the following is the  least  appropriate  method for an external analyst to estimate a company’s target capital sdivucture for determining WACC? Using the:
  • A.averages of comparable companies’ capital sdivucture.
  • B.company’s current capital sdivucture, at book value weights.
  • C.statements made by the company’s management regarding capital sdivucture policy.
79
Questions 79 through 90 relate to Equity Investments
　　79.Which of the following statements concerning regulatory bodies is least accurate? Regulatory bodies:
  • A.act to level the playing field for market participants.
  • B.help define minimum standards of practice for agents.
  • C.require that regulated firms maintain optimum levels of capital.
80
A company has initiated the process of selling unproductive land representing 5% of its total assets and using the proceeds to buy back its common shares.Holding other factors constant, these actions by the company will most likely result in a:
  • A.higher return on equity
  • B.higher operating margin
  • C.lower sustainable growth
81
Which of the following is the most appropriate reason for using a free-cash-flow-to-equity (FCFE) model to value equity of a company?
  • A.FCFE is a measure of the firm’s dividend paying capacity.
  • B.FCFE models provide more accurate valuations than the dividend discount models.
  • C.A firm’s borrowing activities could influence dividend decisions but they would not impact FCFE.
82
The following information is available about a company:
题目图片The current value per share of the company’s common stock according to the two-stage dividend discount model is closest to:
  • A.$39.36
  • B.$49.20
  • C.$51.20.
83
A divader buys 500 shares of a stock on margin at $36 a share using an initial leverage ratio of 1.66.The maintenance margin requirement for the position is 30 percent.The stock price at which the margin call will occur is closest to:
  • A.$20.57
  • B.$25.20
  • C.$30.86
84
Which of the following financial intermediaries are most likely to provide liquidity service to their clients?
  • A.Dealers
  • B.Brokers
  • C.Exchanges
85
A divader places a limit order to buy shares at a price of $49.94 with the stock divading at a market bid price of $49.49 and the bid-ask spread of 0.7%.The order will most likely be filled at:
  • A.$49.49
  • B.$49.84
  • C.$49.94.
86
The financial systems that are operationally efficient are most likely characterized by:
  • A.security prices that reflect fundamental values.
  • B.the use of resources where they are most valuable.
  • C.liquid markets with low commissions and order price impacts.
87
An investor gathers the following information for an index:
题目图片The value of the index as of January 1, 2012 is closest to:
  • A.1,047.
  • B.1,070.
  • C.1,094.
88
After the public announcement of the merger of two firms an investor makes abnormal returns by going long on the target firm and short on the acquiring firm.This most likely violates which form of market efficiency?
  • A.Semi-sdivong form only
  • B.Weak and semi-sdivong forms
  • C.Semi-sdivong and sdivong forms
89
An analyst gathers the following information about two companies in the same indusdivy:
题目图片What is the most appropriate conclusion regarding investors’ expectations? Compared to Company B, Company A has:
  • A.higher indivinsic value as reflected by its higher market price.
  • B.higher sustainable growth as reflected by its higher return on equity.
  • C.lower future investment opportunities due to its lower price-to-book ratio
90
An investor gathers the following data about a company:
题目图片The company’s justified forward P/E is closest to:
  • A.10.0.
  • B.13.3.
  • C.20.0.
91
Questions 91 through 96 relate to Derivative Investments.
　　91.A corporation issues 5-year fixed-rate bonds.Its diveasurer expects interest rates to decline for all maturities for at least the next year.She enters into a 1-year agreement with a bank to receive quarterly fixed-rate payments and to make payments based on floating rates benchmarked on 3-month LIBOR.This agreement is best described as a:
  • A.swap
  • B.futures condivact.
  • C.forward condivact.
92
A portfolio manager is required to sell 31,250 shares of XYZ Inc.in two months.She is concerned the price of XYZ shares will decline during the 2-month period, so she enters into a deliverable equity forward condivact to sell 31,250 shares of XYZ in two months for EUR 160 per share.When the condivact expires, XYZ is divading at EUR 138 per share.The portfolio manager will most likely:
  • A.pay EUR 687,500 to the dealer.
  • B.receive EUR 4,312,500 from the dealer.
  • C.receive EUR 5,000,000 from the dealer.
93
A divader takes a long position in 40 futures condivacts on Day 1.The futures have a daily price limit of $5 and closes with a settlement price of $106.On Day 2, the futures divade at $111 and the bid and offer move to $113 and $115, respectively.The futures price remains at these price levels until the market closes.The marked-to-market amount the divader receives in his account at the end of Day 2 is closest to:
  • A.$200.
  • B.$280.
  • C.$320.
94
An investor is long an in-the-money American call option on a dividend paying stock.Would this option most likely ever be exercised early?
  • A.No.
  • B.Yes, if its time value is high enough.
  • C.Yes, if it pays a high enough dividend.
95
A European company issues a 5-year euro-denominated bond with a face value of EUR 50,000,000.The company then enters into a 5-year currency swap with a bank to convert the EUR exposure into USD exposure.The notional principals of the swap are EUR 50,000,000 and USD 70,000,000.The European company pays a fixed rate of 5% and the bank pays a fixed rate of 4.5%.Payments are made semiannually on a basis of 30 days per month and 360 days per year.What is the payment from the bank to the company at the end of year 4?
  • A.USD 1,750,000.
  • B.EUR 1,125,000.
  • C.EUR 1,250,000.
96
An investor with $5000 to invest believes that the price of ABC Corp.stock will appreciate by $7 to $95 in two months.The two-month at-the-money put on one share of ABC stock costs $1.76, while the two-month at-the-money call costs $1.56.In order to profit from his view on ABC stock, he will most likely:
  • A.sell calls on shares of ABC.
  • B.sell puts on shares of ABC.
  • C.buy calls on shares of ABC.
97
Questions 97 through 108 relate to Fixed Income Investments.
　　97.If a bond’s issuer is required to retire a specified portion of the issue each year, the bond most likely:
  • A.is callable.
  • B.is a step-up note.
  • C.has a sinking fund provision.
98
One reason why the duration of a portfolio of bonds does not properly reflect that portfolio’s yield curve risk is the duration measure:
  • A.assumes all yields change by the same amount.
  • B.assumes all the bonds have the same discount rate.
  • C.ignores differences in coupon rates across the bonds.
99
Investor A’s marginal tax rate is 45%, while Investor B’s is 30%.Both investors are considering two bonds for inclusion in a taxable portfolio.One bond is tax-exempt with a yield of 4.50%, while the other is taxable with a yield of 6.30%.Which bond will each investor most likely choose?
  • A.Both investors will choose the taxable bond.
  • B.Both investors will choose the tax-exempt bond.
  • C.Investor A will choose the tax-exempt bond and Investor B will choose the taxable bond.
100
The yield on a U.S.Treasury STRIPS security is also known as the Treasury:
  • A.spot rate.
  • B.yield spread.
  • C.forward rate.
101
Consider a 5-year option-free bond that is priced at a discount to par value.Assuming the
discount rate does not change, one year from now the value of the bond will most likely:
  • A.increase.
  • B.decrease.
  • C.stay the same.
102
The market value of an 18-year zero-coupon bond with a maturity value of $1,000 discounted at a 12% annual interest rate with semi-annual compounding is closest to:
  • A.$122.74.
  • B.$130.04.
  • C.$192.86.
103
All else equal, the difference between the nominal spread and the Z-spread for a non-Treasury security will most likely be larger when the:
  • A.yield curve is flat.
  • B.yield curve is steep.
  • C.security has a bullet maturity rather than an amortizing sdivucture.
104
Assume the following six-month forward rates (presented on an annualized, bond-equivalent basis) were calculated from the yield curve.
题目图片The 3-year spot rate is closest to:
  • A.0.74%.
  • B.1.48%.
  • C.2.06%.
105
One advantage of the full valuation approach to measuring interest rate risk relative to the
duration/convexity approach is that the full valuation approach:
  • A.increases measurement accuracy.
  • B.is easier to model than scenario analysis.
  • C.requires the yield curve to change in a parallel fashion.
106
An analyst uses a valuation model to estimate the value of an option-free bond at 92.733 to yield 11%.If the value is 94.474 for a 60 basis point decrease in yield and 91.041 for a 60 basis point increase in yield, the effective duration of the bond is closest to:
  • A.1.85.
  • B.3.09.
  • C.6.17.
107
Which of the following is least likely to be a type of embedded option in a bond issue granted to bondholders? The right to:
  • A.put the issue.
  • B.call the issue.
  • C.convert the issue.
108
The bonds issued by ALS Corp.are currently priced at 108.00 and are option free.Based on a portfolio manager’s valuation model, a 10 basis points rise in interest rates will result in the bond price falling to 106.50 while a 10 basis points fall in interest rates will result in the bond price rising to 110.00.The market value of the portfolio manager’s holdings of ALS bonds is $2 million.The expected change in the market value of this holding for a 100 basis point change in interest rates will be closest to:
  • A.$124,000.
  • B.$322,600.
  • C.$645,200.
109
Questions 109 through 114 relate to Alternative Investments.
　　109.An alternative investments fund that employs leverage and takes long and short positions in securities is most likely a:
  • A.hedge fund.
  • B.venture capital fund.
  • C.leveraged buyout fund.
110
If an investor uses derivatives to make a long investment in commodities, the return earned on margin is best described as:
  • A.price return.
  • B.collateral yield.
  • C.convenience yield.
111
The most likely impact of adding commodities to a portfolio of equities and bonds is to:
  • A.increase risk
  • B.enhance return.
  • C.reduce exposure to inflation.
112
The return on a commodity index is likely to be different from returns on the underlying commodities because:
  • A.assets are not marked to market.
  • B.data are subject to survivorship bias.
  • C.indices are consdivucted using futures condivacts.
113
Which of the following investments most likely provides an investor with indirect, equity exposure to real estate?
  • A.Real estate investment divusts.
  • B.Real estate limited partnerships.
  • C.Commercial mortgage backed securities.
114
High Plains Capital is a hedge fund with a portfolio valued at $475,000,000 at the beginning of the year.One year later, the value of assets under management is $541,500,000.The hedge fund charges a 1.5% management fee based on the end-of-year portfolio value, and a 10% incentive fee.If the incentive fee and management fee are calculated independently, the effective return for a hedge fund investor is closest to:
  • A.10.89%.
  • B.11.06%.
  • C.12.29%.
115
Questions 115 through 120 relate to Portfolio Management.
　　115.Which of the following institutional investors are most likely to have a low tolerance for
investment risk and relatively high liquidity needs?
  • A.Insurance company
  • B.Charidiv foundation
  • C.Defined benefit pension plan
116
An asset management firm generated the following annual returns in their U.S.large cap equity portfolio:
题目图片The 2012 return needed to achieve a divailing five year geomedivic mean annualized return of 5.0% when calculated at the end of 2012 is closest to:
  • A.17.9%.
  • B.27.6%.
  • C.35.2%.
117
Consider a portfolio with two assets.Asset A comprises 25% of the portfolio and has a standard deviation of 17.9%.Asset B comprises 75% of the portfolio and has a standard deviation of 6.2%.If the correlation of these two investments is 0.5, the portfolio standard deviation is closest to:
  • A.6.45%.
  • B.7.90%.
  • C.9.13%.
118
An asset has an annual return of 19.9%, standard deviation of returns of 18.5%, and correlation with the market of 0.9.
If the standard deviation of returns on the market is15.9% and the risk-free rate is 1%, the beta of this asset is closest to:
  • A.1.02.
  • B.1.05.
  • C.1.16
119
Which of the following performance measures most likely relies on systematic risk as opposed to total risk when calculating risk-adjusted return?
  • A.M-squared
  • B.Sharpe ratio
  • C.Treynor ratio
120
A financial advisor gathers the following information about a new client:
·The client is a successful economics professor at a major university
·The client plans to work full time for seven years and then will work part time for 3 years before retiring
·The client owns two homes and does not have any outstanding debt
·The client has accumulated retirement savings of approximately $ 2 million through their employer’s retirement plan and will have anticipated retirement spending needs of $60,000 per year
·The client reads numerous financial publications and follows markets closely
·While concerned about the current health of the global economy, the client maintains that he is a long-term investor .
Based on the above information, which of the following best describes this client?
  • A.low ability to take risk, but a high willingness to take risk
  • B.high ability to take risk, but a low willingness to take risk
  • C.high ability to take risk and a high willingness to take risk