Financial Institute CFA Level I Chartered Analyst® CFA Level 1 Exam Questions in PDF

Free Financial CFA Level 1 Dumps Questions (page: 143)

Kevin wants to retire a millionaire. If he is 45 years old today and already has $80,000 in the bank, what monthly deposit would he need to make beginning one month from today and continuing until he retires on his 65th birthday, if the money will earn 8% per year, compounded monthly?

  1. $1,028.58
  2. $1,760.14
  3. $407.81
  4. $1,138.45
  5. $2,119.81

Answer(s): A

Explanation:

The total number of deposits will be 240 (20 years x 12 months/year). On the BAII Plus, press 240 N, 8 divide 12 = I/Y, 80000 PV, 1000000 +/- FV, CPT PMT. On the HP12C, press 240 n, 8 ENTER 12 divide i, 80000 PV, 1000000 CHS FV, PMT. Note that the answer will be displayed as a negative number. Make sure the BAII Plus has the P/Y value set to 1.



The employees of Cartwright Manufacturing are awarded efficiency ratings. The distribution of the ratings approximates a normal distribution. The mean is 400, the standard deviation 50. What is the area under the normal curve between 400 and 482?

  1. 0.4750
  2. 0.3413
  3. 0.5000
  4. 0.4495
  5. None of these answers

Answer(s): D

Explanation:

z = (x-u)/sigma. z1 = 400 - 400/50 = 0 and z2 = 482 - 400/50 = 1.64. Therefore for z = 1.64, the area under the curve is 0.4495.



Which of the following is/are true about a standard normal distribution?

  1. It has zero skewness.
    II. It is characterized completely by exactly one parameter.
    III. It ranges from negative infinity to positive infinity.
    IV. It has a non-zero mean and variance.
  2. I, II, III and IV
  3. I & III
  4. II only
  5. III only
  6. I only
  7. IV only
  8. II and III
  9. III and IV

Answer(s): B

Explanation:

A normal distribution is characterized by two parameters, the mean and the variance. The standard normal distribution, though, has a zero mean and a variance of 1 and hence, has no free parameters.



What annual interest rate, compounded annually, is equivalent to 7% per year, compounded quarterly?

  1. 6.88%
  2. 7.19%
  3. 7%
  4. 7.03%
  5. 7.09%

Answer(s): B

Explanation:

Questions of this type are illustrating the concept of an Effective Interest Rate, which is a rate compounded annually that has the same effect as a rate compounded more often than one time a year. As such, a depositor or a creditor is indifferent between them, since they have the same effect. To solve this question, make any deposit and see how much is in the account after one year. The ratio of the ending FV to the beginning PV will indicate the annual rate earned. On the BAII Plus, press 4 N, 7 divide 4 = I/Y, 100 PV, 0 PMT, CPT FV. On the HP12C, press 4 n, 7 ENTER 4 divide i, 100 PV, 0 PMT, FV. The number displayed will be 107.19. In other words, after one year, $100 has become $107.19. An interest rate of 7.19%, compounded annually, would cause a $100 deposit to become $107.19 in one year. Choosing an initial deposit of $100 helps a great deal in these situations. Make sure the BAII Plus has the value of P/Y set to 1.



The following stock market return data were observed last year:

Returns# of stocks
less than -5% 129
between -5% and 0% 301
between 0% and 10% 636
between 10% and 20% 274
more than 20% 173

The probability that a randomly selected stock had either a negative return or a return more than 20% equals ________.

  1. 0.27
  2. 0.53
  3. 0.60
  4. 0.40

Answer(s): D

Explanation:

For a frequency distribution, the estimated probability of a particular class/event occurring equals the relative frequency of that class. Now, the number of stocks that had either a negative return or a return more than 20% equals 129 + 301 + 173 = 603. The total number of stocks equals 129 + 301 + 636 + 274 + 173 = 1513.
Therefore, the estimated probability of a randomly selected stock having either a negative return or a return more than 20% equals 603/1513 = 0.40.



Share your comments for Financial CFA Level 1 exam with other users:

Z
Zoubeyr
9/8/2023 5:56:00 AM

question 11 : d

U
User
8/29/2023 3:24:00 AM

only the free dumps will be enough for pass, or have to purchase the premium one. please suggest.

C
CW
7/6/2023 7:37:00 PM

good questions. thanks.

F
Farooqi
11/21/2023 1:37:00 AM

good for practice.

I
Isaac
10/28/2023 2:30:00 PM

great case study

M
Malviya
2/3/2023 9:10:00 AM

the questions in this exam dumps is valid. i passed my test last monday. i only whish they had their pricing in inr instead of usd. but it is still worth it.

R
rsmyth
5/18/2023 12:44:00 PM

q40 the answer is not d, why are you giving incorrect answers? snapshot consolidation is used to merge the snapshot delta disk files to the vm base disk

K
Keny
6/23/2023 9:00:00 PM

thanks, very relevant

M
Muhammad Rawish Siddiqui
11/29/2023 12:14:00 PM

wrong answer. it is true not false.

J
Josh
7/10/2023 1:54:00 PM

please i need the mo-100 questions

V
VINNY
6/2/2023 11:59:00 AM

very good use full

A
Andy
12/6/2023 5:56:00 AM

very valid questions

M
Mamo
8/12/2023 7:46:00 AM

will these question help me to clear pl-300 exam?

M
Marial Manyang
7/26/2023 10:13:00 AM

please provide me with these dumps questions. thanks

A
Amel Mhamdi
12/16/2022 10:10:00 AM

in the pdf downloaded is write google cloud database engineer i think that it isnt the correct exam

A
Angel
8/30/2023 10:58:00 PM

i think you have the answers wrong regarding question: "what are three core principles of web content accessibility guidelines (wcag)? answer: robust, operable, understandable

S
SH
5/16/2023 1:43:00 PM

these questions are not valid , they dont come for the exam now

S
sudhagar
9/6/2023 3:02:00 PM

question looks valid

V
Van
11/24/2023 4:02:00 AM

good for practice

D
Divya
8/2/2023 6:54:00 AM

need more q&a to go ahead

R
Rakesh
10/6/2023 3:06:00 AM

question 59 - a newly-created role is not assigned to any user, nor granted to any other role. answer is b https://docs.snowflake.com/en/user-guide/security-access-control-overview

N
Nik
11/10/2023 4:57:00 AM

just passed my exam today. i saw all of these questions in my text today. so i can confirm this is a valid dump.

D
Deep
6/12/2023 7:22:00 AM

needed dumps

T
tumz
1/16/2024 10:30:00 AM

very helpful

N
NRI
8/27/2023 10:05:00 AM

will post once the exam is finished

K
kent
11/3/2023 10:45:00 AM

relevant questions

Q
Qasim
6/11/2022 9:43:00 AM

just clear exam on 10/06/2202 dumps is valid all questions are came same in dumps only 2 new questions total 46 questions 1 case study with 5 question no lab/simulation in my exam please check the answers best of luck

C
Cath
10/10/2023 10:09:00 AM

q.112 - correct answer is c - the event registry is a module that provides event definitions. answer a - not correct as it is the definition of event log

S
Shiji
10/15/2023 1:31:00 PM

good and useful.

A
Ade
6/25/2023 1:14:00 PM

good questions

P
Praveen P
11/8/2023 5:18:00 AM

good content

A
Anastasiia
12/28/2023 9:06:00 AM

totally not correct answers. 21. you have one gcp account running in your default region and zone and another account running in a non-default region and zone. you want to start a new compute engine instance in these two google cloud platform accounts using the command line interface. what should you do? correct: create two configurations using gcloud config configurations create [name]. run gcloud config configurations activate [name] to switch between accounts when running the commands to start the compute engine instances.

P
Priyanka
7/24/2023 2:26:00 AM

kindly upload the dumps

N
Nabeel
7/25/2023 4:11:00 PM

still learning

AI Tutor 👋 I’m here to help!