CFA Level I Chartered Financial Analyst CFA I Dumps in PDF

Free CFA CFA I Real Questions (page: 100)

A cumulative frequency distribution on days absent during a calendar year by employees of a manufacturing company is shown below.
Days Absent Cumulative Number of Employees
0 - 260
3 - 531
6 - 814
9 - 116
12 - 142
How many employees were absent more than five days?

  1. 14
  2. 8
  3. None of these answers
  4. 22
  5. 31

Answer(s): A

Explanation:

The cumulative number for class 6-8 will give us the number of people absent more than five days; 14.



Tran Holten, a quantitative analyst with Smith, Kleen & Beetchnutty Brokerage, has just been informed of an important error in one of his recent statistical endeavors. Specifically, in one hypothesis test, Mr. Holten rejected a null hypothesis that later was proven to be true. Which of the following best describes this type of error in hypothesis testing? Further, if the confidence level of the test were increased, would the probability of this error increase, decrease, or remain unchanged?

  1. Type I error; decrease
  2. Type I error; increase
  3. Type II error; decrease
  4. Type I error; remain unchanged
  5. Type II error; remain unchanged
  6. Type II error; increase

Answer(s): A

Explanation:

In this example, Tran Holten has incorrectly rejected a null hypothesis. This type of error in hypothesis testing is called a Type I error. In hypothesis testing, the Type I error is given much more attention than the Type II error.
In most hypothesis tests, the probability of a null hypothesis is equal to the significance level of the test. A significance level of 0.01, for example, indicates that a 1% chance exists that the null hypothesis will be rejected when it is indeed true. Another way to think of the probability of a Type I error is to observe the following relationship:
{Probability of a Type I error = (1 - confidence level)}.
For example, a confidence level of 95% leaves a 5% probability of a Type I error occurring. If this confidence level were to increase to say, 98%, then the probability of a Type I error would reduce to 2%. As you can see, there is a relationship between the confidence level of a test and the probability of a Type I error. If the confidence level of the test in this example were to increase, then the probability of a Type I error would decrease.



You believe the stock of Microsquish reflects a 90% chance of a dismissal of its contractual liability suit. If the suit is dismissed, you expect the stock of Microsquish and its partner, AWOL, to rise. If the suit is not dismissed, both will fall in price. However, you think that AWOL's stock only reflects a 60% chance of dismissal of this suit. What strategy would be optimal?

  1. Sell both short
  2. Buy Microsquish
  3. Sell AWOL
  4. Buy AWOL

Answer(s): D

Explanation:

This is an example of the investment consequences of inconsistent probabilities. If the true probability of a lawsuit dismissal is only 60%, then AWOL's stock is fairly valued, and Microsquish is overvalued. If the true probability is 90%, then Microsquish is fairly valued, and AWOL is undervalued. Your can thus construct a profitable risk-free strategy. You should buy AWOL, because at worst, the stock will be fairly valued. At best, it is undervalued. You could also simultaneously short Microsquish, because at best, it is fairly valued; there is a chance that it is overvalued. Note that this example ignores all other factors other than the lawsuit.



If the correlation coefficient between two variables equals zero, what can be said of the variables X and Y?

  1. Highly correlated
  2. Not correlated
  3. Dependent on each other
  4. None of these answers are correct
  5. All of these answers are correct

Answer(s): B

Explanation:

r ranges from -1 to +1. The closer it is to -1 or +1, the stronger the relationship. Closer it is to zero, the weaker.



How much must you deposit today in order to withdraw $500 in 1 year, $700 in 3 years and $500 in 4 years,

assuming your money earns 6.5% per year, compounded annually?

  1. $1,200.00
  2. $1,503.27
  3. $1,240.80
  4. $1,421.95
  5. $1,437.64

Answer(s): E

Explanation:

Solve this question by working 3 compound interest problems. On the BAII Plus, press 1 N, 6.5 I/Y, 0 PMT, 500 FV, CPT PV, which yields $469.48. Then press STO 1. Then press 3 N, 700 FV, CPT PV, which yields $579.49. Then press + RCL 1 = STO 1. Then press 4 N, 500 FV, CPT PV, which yields $388.66. Then press + RCL 1 = to see the answer. On the HP12C, press 1 n, 6.5 i, 0 PMT, 500 FV, PV. Then press STO 1. Then press 3 N, 700 FV, PV. Then press RCL 1 + STO 1. Then press 4 n, 500 FV, PV. Then press RCL 1 + to see the answer. Note that the answer will be displayed as a negative number. Make sure the BAII Plus has the P/Y value set to 1.



Share your comments for CFA CFA I exam with other users:

J
johnson
10/24/2023 5:47:00 AM

i studied for the microsoft azure az-204 exam through it has 100% real questions available for practice along with various mock tests. i scored 900/1000.

M
Manas
9/9/2023 1:48:00 AM

please upload 1z0-1072-23 exam dups

S
SB
9/12/2023 5:15:00 AM

i was hoping if you could please share the pdf as i’m currently preparing to give the exam.

J
Jagjit
8/26/2023 5:01:00 PM

i am looking for oracle 1z0-116 exam

S
S Mallik
11/27/2023 12:32:00 AM

where we can get the answer to the questions

P
PiPi Li
12/12/2023 8:32:00 PM

nice questions

D
Dan
8/10/2023 4:19:00 PM

question 129 is completely wrong.

G
gayathiri
7/6/2023 12:10:00 AM

i need dump

D
Deb
8/15/2023 8:28:00 PM

love the site.

M
Michelle
6/23/2023 4:08:00 AM

can you please upload it back?

A
Ajay
10/3/2023 12:17:00 PM

could you please re-upload this exam? thanks a lot!

H
him
9/30/2023 2:38:00 AM

great about shared quiz

S
San
11/14/2023 12:46:00 AM

goood helping

W
Wang
6/9/2022 10:05:00 PM

pay attention to questions. they are very tricky. i waould say about 80 to 85% of the questions are in this exam dump.

M
Mary
5/16/2023 4:50:00 AM

wish you would allow more free questions

T
thomas
9/12/2023 4:28:00 AM

great simulation

S
Sandhya
12/9/2023 12:57:00 AM

very g inood

A
Agathenta
12/16/2023 1:36:00 PM

q35 should be a

M
MD. SAIFUL ISLAM
6/22/2023 5:21:00 AM

sap c_ts450_2021

S
Satya
7/24/2023 3:18:00 AM

nice questions

S
sk
5/13/2023 2:10:00 AM

ecellent materil for unserstanding

G
Gerard
6/29/2023 11:14:00 AM

good so far

L
Limbo
10/9/2023 3:08:00 AM

this is way too informative

T
Tejasree
8/26/2023 1:46:00 AM

very helpfull

Y
Yolostar Again
10/12/2023 3:02:00 PM

q.189 - answers are incorrect.

S
Shikha Bakra
9/10/2023 5:16:00 PM

awesome job in getting these questions

K
Kevin
10/20/2023 2:01:00 AM

i cant find aws certified practitioner clf-c01 exam in aws website but i found aws certified practitioner clf-c02 exam. can everyone please verify the difference between the two clf-c01 and clf-c02? thank you

D
D Mario
6/19/2023 10:38:00 PM

grazie mille. i got a satisfactory mark in my exam test today because of this exam dumps. sorry for my english.

B
Bharat Kumar Saraf
10/31/2023 4:36:00 AM

some of the answers are incorrect. need to be reviewed.

J
JP
7/13/2023 12:21:00 PM

so far so good

K
Kiky V
8/8/2023 6:32:00 PM

i am really liking it

T
trying
7/28/2023 12:37:00 PM

thanks good stuff

E
exampei
10/4/2023 2:40:00 PM

need dump c_tadm_23

E
Eman Sawalha
6/10/2023 6:18:00 AM

next time i will write a full review

AI Tutor 👋 I’m here to help!