CFA Level I Chartered Financial Analyst CFA I Exam Questions in PDF

Free CFA CFA I Dumps Questions (page: 193)

Type II error refers to the event that we will:

  1. Fail to reject the null when it is false.
  2. Accept the alternative when it is false.
  3. Reject the null when it is true.
  4. Reject the alternative when it is true.

Answer(s): A

Explanation:

Remember that the null hypothesis is the one that you maintain to be true unless there is sufficient evidence to prove otherwise. Therefore, the first type of mistake that can happen is that you reject the maintained hypothesis when in fact, it is true. This error is referred to as "Type I" error. On the other hand, you may not have sufficient evidence to disprove the null when in fact, it is false. This failure to appropriately reject the null is referred to as "Type II" error.



Of 900 consumers surveyed, 414 said they were very enthusiastic about a new home decor scheme. What is the 99% confidence interval for the population proportion (in percent)?

  1. 42 and 50
  2. None of these answers
  3. 30 and 40
  4. 30 and 60
  5. 31 and 51

Answer(s): A

Explanation:

Interval estimate can be found from p +/- z[p(1-p)/n]^0.5. Here we have n = 900, p = 414/900 = 0.46 and z = 2.58 (for 99%). Therefore 0.46 +/- 2.58*0.01661 and we get 0.42 and 0.50.



What is the present value today of these annual cash flows: $300, $1,200, $2,500? Assume the first cash flow occurs 1 year from today and an interest rate of 9% per year, compounded annually.

  1. $3,215.70
  2. $2,989.06
  3. $3,244.09
  4. $3,298.82
  5. $3,308.86

Answer(s): A

Explanation:

You could solve this question using 3 different compound interest problems, but it is easier to solve them using the calculator's cash flow functions. On the BAII Plus, press CF 2nd CLRWork 0 ENTER DownArrow 300 ENTER DownArrow DownArrow 1200 ENTER DownArrow DownArrow 2500 ENTER DownArrow DownArrow 2nd Quit. Then press NPV 9 ENTER DownArrow CPT. On the HP12C, press these keys: 0 BlueShift CFo 300 BlueShift CFj 1200 BlueShift CFj 2500 BlueShift CFj. Then press 9 i, YellowShift NPV. The "DownArrow" represents the downward-pointing arrow on the top row of the BAII Plus keyboard. Make sure that the BAII Plus has the P/Y value set to 1.



A perpetual preferred stock has a face value of $1,000 and a coupon rate of 6% per year. If it is issued at $850, what's the implicit annual discount rate?

  1. 6.94%
  2. 7.00%
  3. 7.19%
  4. 7.06%

Answer(s): D

Explanation:

A preferred stock is valued like a perpetuity. The price of a preferred stock with a face value F and a coupon rate c equals F*c/r, where r is the implicit discount rate. In this case, we have 850 = 1,000*0.06/r, giving r = 7.06%.



If you deposit $2,250 today into a savings account paying 8% per year, compounded semiannually, how much is in your account in 10 years?

  1. $4,587.85
  2. $10,487.15
  3. $3,330.55
  4. $4,857.58
  5. $4,930.03

Answer(s): E

Explanation:

On the BAII Plus, press 20 N, 8 divide 2 = I/Y, 2250 PV, 0 PMT, CPT FV. On the HP12C, press 20 n, 8 ENTER 2 divide i, 2250 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.



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

S
sachin
6/27/2023 1:22:00 PM

can you share the pdf

B
Blessious Phiri
8/13/2023 10:26:00 AM

admin ii is real technical stuff

L
Luis Manuel
7/13/2023 9:30:00 PM

could you post the link

V
vijendra
8/18/2023 7:54:00 AM

hello send me dumps

S
Simeneh
7/9/2023 8:46:00 AM

it is very nice

J
john
11/16/2023 5:13:00 PM

i gave the amazon dva-c02 tests today and passed. very helpful.

T
Tao
11/20/2023 8:53:00 AM

there is an incorrect word in the problem statement. for example, in question 1, there is the word "speci c". this is "specific. in the other question, there is the word "noti cation". this is "notification. these mistakes make this site difficult for me to use.

P
patricks
10/24/2023 6:02:00 AM

passed my az-120 certification exam today with 90% marks. studied using the dumps highly recommended to all.

A
Ananya
9/14/2023 5:17:00 AM

i need it, plz make it available

J
JM
12/19/2023 2:41:00 PM

q47: intrusion prevention system is the correct answer, not patch management. by definition, there are no patches available for a zero-day vulnerability. the way to prevent an attacker from exploiting a zero-day vulnerability is to use an ips.

R
Ronke
8/18/2023 10:39:00 AM

this is simple but tiugh as well

C
CesarPA
7/12/2023 10:36:00 PM

questão 4, segundo meu compilador local e o site https://www.jdoodle.com/online-java-compiler/, a resposta correta é "c" !

J
Jeya
9/13/2023 7:50:00 AM

its very useful

T
Tracy
10/24/2023 6:28:00 AM

i mastered my skills and aced the comptia 220-1102 exam with a score of 920/1000. i give the credit to for my success.

J
James
8/17/2023 4:33:00 PM

real questions

A
Aderonke
10/23/2023 1:07:00 PM

very helpful assessments

S
Simmi
8/24/2023 7:25:00 AM

hi there, i would like to get dumps for this exam

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

AI Tutor 👋 I’m here to help!