CFA Level I Chartered Financial Analyst CFA I Dumps in PDF

Free CFA CFA I Real Questions (page: 125)

The mean amount of gasoline and services charged by Key Refining Company credit customers is $70 per month. The distribution of amounts spent is approximately normal with a standard deviation of $10. What is the probability of selecting a credit card customer at random and finding the customer charged between $70 and $83?

  1. 0.4032
  2. None of these answers
  3. 0.1962
  4. 0.3413
  5. 0.4750

Answer(s): A

Explanation:

z = (x-u)/sigma. z1 = 70 - 70/10 = 0 and z2 = 83 - 70/10 = 1.3. For z = 1.3, the area under the curve is 0.4032.



Two events, A and B, are independent if:

  1. P(A and B) = 1
  2. P(A and B) = P(A) + P(B)
  3. P(A and B) = 0
  4. P(A and B) = P(A) P(B)

Answer(s): D

Explanation:

This is the definition of independence.



If you deposit $4,250 today into a savings account paying 6% per year, compounded semiannually, how much is in your account in 4 years?

  1. $5,365.53
  2. $6,773.85
  3. $6,000.00
  4. $4,783.41
  5. $5,383.77

Answer(s): E

Explanation:

On the BAII Plus, press 8 N, 6 divide 2 = I/Y, 4250 PV, 0 PMT, CPT FV. On the HP12C, press 8 n, 6 ENTER 2 divide i, 4250 PV, 0 PMT, FV. Note that the answer will be displayed as a negative number. Make sure the BAII Plus has the P/Y value set to 1.



A stock has the following returns over 4 years: +5%, -6%, +8%, +3%. The annual arithmetic and geometric rates of return over the 4 years are:

  1. 5%; 5.57%
  2. 2.5%; 9.79%
  3. 10%; 9.79%
  4. 2.5%; 2.36%

Answer(s): D

Explanation:

The mean equals (5% + (-6%) + 8% + 3%)/4 = 2.5%
The geometric mean equals (1.05 * 0.94 * 1.08 * 1.03)^(1/4) = 2.36% Note that the geometric mean is less than the mean.



What is the annual Internal Rate of Return of this series of annual cash flows: Year 0: <$15,000>, Year 1:
$5,000, Year 2: $8,000, Year 3: $11,000? (Note that the <> are used to indicate a negative number).

  1. 27.12%
  2. 23.74%
  3. 25.55%
  4. 26.61%
  5. 24.02%

Answer(s): E

Explanation:

On the BAII Plus, press CF 2nd CLRWork 15000 +/- ENTER DownArrow 5000 ENTER DownArrow DownArrow 8000 ENTER DownArrow DownArrow 11000 ENTER DownArrow DownArrow 2nd Quit. Then press Irr CPT.
On the HP12C, press these keys: 15000 CHS BlueShift CFo 5000 BlueShift CFj 8000 BlueShift CFj 11000 BlueShift CFj Then press YellowShift Irr. The "DownArrow" represents the downward-pointing arrow on the top row of the BAII Plus keyboard. Make sure the BAII Plus has the P/Y value set to 1.



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12/20/2023 11:34:00 AM

q10 - the answer should be a. if its c, the criteria will meet if either the prospect is not part of the suppression lists or if the job title contains vice president

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david
12/12/2023 12:38:00 PM

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12/18/2023 3:12:00 PM

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4/7/2023 10:04:00 AM

on question 10 and so far 2 wrong answers as evident in the included reference link.

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12/29/2023 4:48:00 PM

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11/27/2023 6:12:00 AM

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11/22/2023 1:45:00 AM

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10/19/2023 6:32:00 PM

question: 128 d is the wrong answer...should be c

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8/12/2023 7:56:00 PM

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10/5/2023 12:16:00 PM

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11/28/2023 4:52:00 PM

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