Level 1EXAM 1 Afternoon

窗体顶部Schweser Printable Tests - Level 1 - EXAM 1 Afternoon - 180 minutes - Level 1 - EXAM 1 AfternoonYou can print this page by going to file - print in your internet browser. Ethics - 18 Questions - 27 minutesQuestion: 1 - 23386 Which of the following are appropriate uses of the CFA mark?I. The CFA designation put after your name cannot exceed the size print used for your name. II. Any description of the CFA designation should be limited to a concise description of the requirements and/or organization conferring the designation. III. CFA candidates must indicate their level by putting the highest level of the exam they have passed along with the CFA designation after their name, such as CFA II. A)I only.B)I and II only.C)I and III only.D)I, II, and III.Question: 2 - 28434 According to AIMRs Standards of Professional Conduct Standard which of the following activities violates Standard IV(B.4), Priority of Transactions?I. Trading for the firms account before handling the clients trades. II. An analyst makes trades for his sons account before he trades his institutional accounts. III. An analyst buys stock for his own account on an inside tip while not doing so for his clients. IV. An analyst buying shares for his personal account after all the firms clients have been informed and their trades completed. A)I and II.B)I and IV.C)I and III.D)All of these choices are correct.Question: 3 - 28435 Julie Hoffman, a trainee and CFA candidate, is in her first week with BUK Management Corp., a local brokerage house. Hoffman was given a phone list and told to make a few cold calls to round up some clients. To generate business she has made the following statements: I. I personally guarantee this investment its a sure winner. II. Sure, we can perform all the financial and investment services you need. III. Weve consistently outperformed the market indexes and will continue to do so. IV. Believe me, Ive been at this game long enough to know what Im talking about. In which of the following statements has Hoffman made a material misrepresentation?A)I only.B)I and III.C)I, II, III, and IV.D)II and IV.Question: 4 - 28436 Which of the following statements is FALSE? A)The investment manager must inform the client that the manager may engage in soft dollar arrangements before doing so.B)The investment manager cannot allocate a clients brokerage to a broker based on the amount of referrals the manager receives from the broker.C)The broker can use brokerage from another clients account to pay for research under the client-directed brokerage arrangement.D)To use client brokerage to buy research the manager should determine that the research meets the definition of research and that it directly benefits the client.Question: 5 - 28437 A compliance system that seeks to control the flow of information between departments in a firm by supervising interdepartmental communications, reviewing employee and proprietary trading, especially when the firm is in possession of material nonpublic information and memorializing the firms documents and procedures is called the: A)Insider Trading Sanctions Act.B)SEC Enforcement Program.C)Misappropriation Theory of compliance.D)Fire Wall compliance system.Question: 6 - 28438 Which of the following statements about AIMRs Performance Presentation Standards for use by investment managers in calculating and presenting their investment returns is FALSE? A)Investment income should be included on a full accrual basis.B)Cash and cash equivalents must be included in composite returns.C)Accounts no longer under management may be excluded from historical composite performance results.D)Performance returns should combine both income and capital appreciation.Question: 7 - 29231 An AIMR member, undertaking independent practice that could result in compensation or other benefit, must: A)obtain written consent from the employer.B)obtain written consent from the persons or entities for whom they undertake independent practice.C)obtain written consent from both their employer and the persons or entities for whom they undertake independent practice.D)inform both the employer and the persons or entities for whom they undertake independent practice.Question: 8 - 29232 Which of the following would be permissible under Standard II(C), Prohibition against Plagiarism? A)Using excerpts from a report prepared by a well known outside research firm without acknowledgement.B)Reporting statistics prepared by an outside firm, identifying the source but omitting caveats and qualifying statements.C)Attributing research to investment experts.D)Including a graph showing the Feds discount rates over the previous 12 months in a report that goes to clients.Question: 9 - 29233 All of the following are acceptable ways that AIMR members may notify their employer of the Code and Standards EXCEPT: A)by memo.B)by e-mail.C)verbally.D)by letter.Question: 10 - 29234 What is the rule of thumb for members, CFA charterholders and candidates in the CFA program when weighing the requirements of the AIMR Code and Standards and the requirements of local laws? If the applicable laws are: A)more strict, they must still follow the Code and Standards.B)more strict, they must adhere to the applicable laws.C)less strict, they must still follow the local country laws.D)less strict, they should make a judgment call on which to follow, the Code and Standards or the local laws and requirements.Question: 11 - 29235 Members should: A)suggest that their employers adopt the Code and Standards and disseminate them throughout the firm.B)require that their employees adopt the Code and Standards.C)inform all employees in the firm of their requirement to follow the Code and Standards.D)inform their supervisors orally that they must follow the Code and Standards.Question: 12 - 29236 John Martin, an analyst and CFA charterholder, discovers that Jurix Co. has knowingly misstated information in their prospectus. To comply with AIMRs Code of Ethics and Standards of Professional Conduct, he should: A)resign from his job in order to disassociate from the potentially illegal activity.B)call the appropriate regulatory agency and report the action.C)do nothing and see if the firm corrects the problem.D)report the finding to the appropriate supervisory person in his firm.Question: 13 - 29237 Jack Salyers, CFA, is considering starting his own firm to compete with his current employer. He takes several actions before turning in his resignation. Which of the following actions is NOT in violation of Standard III(B), Duty to Employer? A)Jack told his employer that he was considering leaving and requested that the employer write him a letter of recommendation.B)Before leaving, Jack solicits his employers current clients.C)Jack took home client lists and investment statements.D)Jack copied the employers computer models and other property.Question: 14 - 29238 Sarah Johnson, portfolio manager, is being paid a bonus directly by the client if she meets certain performance goals. She should: A)disclose to her client that it is illegal to receive a bonus outside of her compensation from her employer. B)disclose this arrangement to her employer.C)do nothing since her interests are in line with the clients interests and thus she need not make special disclosures.D)do nothing since she does not know if shell actually meet the performance goals and receive the bonus.Question: 15 - 29239 Jason Jones, a stock broker who has completed Level I of the CFA program and is registered for Level II: A)may claim to be a CFA since he has completed Level I.B)may claim the partial designation that AIMR allows for those who have partially completed the program.C)may reference his participation in the program but must clearly state that he is a candidate in the program.D)may not mention at all that he is involved in the CFA program until he has passed all three levels.Question: 16 - 29240 Brokerage is an asset of the: A)managing firm.B)manager within the managing firm.C)brokerage firm conducting the trades.D)client.Question: 17 - 29241 Ruth Mayer, CFA, recommends Monolo, Inc. to all of her clients as a strong buy. Ruth is on the board of Monolo and her firm is in talks with Monolo for the rights to lead the syndicate of investment banks in the upcoming equity issue. Monolo promises to put Ruths husband on the board of a subsidiary if she can significantly increase interest in Monolos stock. Ruth is violating which standard(s) from the Code and Standards in this scenario?I. Standard IV(B7), Disclosure of Conflicts to Clients and Prospects. II. Standard IV(B2), Portfolio Investment Recommendations and Actions. III. Standard IV(B1), Fiduciary Duties. IV. Standard III(D), Disclosure of Additional Compensation Arrangements. A)I, II, IV.B)II, III, IV.C)I, III, IV.D)I, II, III, IV.Question: 18 - 29243 Sallie Reid, CFA, is asked by her boss, also a CFA charterholder, to use a research report of a competing firm, change a few details, sign it and send it to a large client. He says their firms researchers will draw the same conclusions but havent gotten to them yet. If she complies, she is doing all of the following EXCEPT: A)violating AIMR standards dealing with plagiarism.B)complying with AIMR standards because she cannot disobey her boss.C)violating AIMR standards regarding the members obligation to inform supervisors of the Code and Standards.D)obeying her boss, a CFA charterholder, but violating several of AIMRs Codes and Standards.Quantitative Analysis - 18 Questions - 27 minutesQuestion: 19 - 18886 An investor in a fund makes a 25 percent return the first year but loses 25 percent in the second year, what will be the annual geometric return on this investment? A)0.0%.B)-3.0%.C)+3.0%.D)+5.0%.Question: 20 - 18889 A distribution is normal when:I. the expected value of the distribution equals the mode and median. II. the probability distribution is symmetric around the expected value. III. the distribution can be defined completely by its expected value and standard deviation. A)I, II, and III.B)I only.C)III only.D)II and III only.Question: 21 - 18920 Given a population of 10, 5, and 15, the coefficient of variation would be: A)30%.B)40%.C)60%.D)100%.Question: 22 - 18921 If a distribution is positively skewed, then generally you could say: A)mean median median median mode.Question: 23 - 28427 Which of the following statements is FALSE? A)The relative frequency is the class frequency divided by the total frequency.B)When building a frequency distribution the classes should be mutually exclusive.C)The advantage of a frequency distribution over a stem-and-leaf display is that the frequency distribution maintains the identity of the individual observations.D)The class interval is the distance between the lower limit of a class and the upper limit of the class.Question: 24 - 28428 Which of the following statements are TRUE?I. An event is the collection of one or more actual outcomes from an experiment. II. A conditional probability is the probability that two or more events will happen concurrently. III. The revised probability that an event will happen given that you have received additional information is called the posterior probability. IV. Out of a sample of 100 widgets 10 were found to be defective, 20 were perfect, and 70 were OK. The probability of picking a perfect widget at random is 29 percent. A)IV only.B)I and IV only.C)I and III only.D)II, III, and IV only.Question: 25 - 28429 Which of the following statements is TRUE? A)A Poisson distribution counts the number of events that occur during a specific time interval.B)A cumulative probability is the sum of all the individually determined probabilities between two points.C)A binomial distribution counts the number of successes that occur in a fixed number of independent trials that have mutually exclusive (i.e. yes or no) outcomes.D)All of these choices are correct.Question: 26 - 28430 A normal distribution has a mean of 10 and a standard deviation of 4. Which of the following statements are TRUE?I. 68% of all the observations will fall between 6 and 14. II. The probability of finding an observation below 2 is 5%. III. 81.5% of all the observations will fall between 6 and 18. IV. The Z-statistic for an observation from this distribution with a value of 5 is 1.25. A)I and II only.B)II and III only.C)I, II, III, and IV.D)I and III only.Question: 27 - 28431 An analyst wants to use the continuous normal distribution to approximate a discrete binomial distribution. To do this the analyst must adjust the Z-statistic. Z = (observation + correction factor) - mean /standard deviation. What is the correction factor? A)+1.0.B)Mean /square root of n - 1.C)+0.5.D)standard deviation / square root of n. There is a parking lot with 100 red and blue cars in it. 40% of the cars are red. 70% of the red cars have radios. 80% of the blue cars have radios. Question: 28 - 28432 What is the probability of selecting a car at random and having it be red and have a radio?A)25%.B)28%.C)40%.D)48%.Question: 29 - 28432 What is the probability of selecting a car at random that is either red or has a radio?A)28%.B)88%.C)76%.D)116%.Question: 30 - 28432 What is the probability that the car is red given that you already know that it has a radio?A)28%.B)47%.C)88%.D)37%.Question: 31 - 28433 Which of the following statements is FALSE? A)A discrete random variable is a variable that can assume only certain clearly separated values resulting from a count of some set of items.B)A continuous random variable is a quantity resulting from a random experiment that by chance can assume an infinite number of different values.C)A binomial probability distribution is an example of a continuous probability distribution.D)The Poisson probability distribution is the limiting form of the binomial distribution where n is large and the probability of success (p) is small.Question: 32 - 29400 Which of the following statements is TRUE regarding the mean of a nonsymmetrical (or skewed) distribution? For a: A)positively skewed distribution, the mode is less than the mean, which is less than the median. B)negatively skewed distribution, the mode is less than the median, which is less than the mean. C)positively skewed distribution, the mode is less than the median, which is less than the mean. D)negatively skewed distribution, the mode is less than the mean, which is less than the median. Question: 33 - 29401 If an investor puts $5724/year starting at the end of the first year in an account earning 8 percent and ends up accumulating $500,000, how many years did it take the investor? A)87 years.B)26 years.C)32 years.D)27 years.Question: 34 - 28251 Given: n = 12, XY = 75, X = 20, Y = 10, X2 = 150, Y2 = 75, r = .66.What is the coefficient of determination?A)0.34.B)0.76.C)0.44.D)0.81.Question: 35 - 28425 Which one of the following statements is TRUE? A)The linear trend equation is y = a + b(t).B)The curvilinear trend equation is log (y) = a + log (b)*(t).C)A linear series increases by a constant percentage over time.D)A curvilinear series increases by a constant amount over time.Question: 36 - 28426 Which of the following statements are TRUE?I. Given: n = 5, X = 20 and Y = 30, if beta = 1 alpha is 2. II. The bigger the standard error of estimate the bigger the R2. III. If alpha is 2 and beta is 1, if Y is given to be 3 then X would be 5. IV. Regression analysis assumes there is a linear relation ship between the X and Y variables. A)I and IV only.B)I and II only.C)I and III only.D)I, III, and IV only.Economics - 14 Questions - 21 minutesQuestion: 37 - 12356 Initially, the risk free nominal interest rate is 10 percent and the expected rate of inflation is 8 percent. One year later, the nominal risk free interest rates fall to 8 percent and expected inflation rate falls to 5 percent. It follows that the real rate of interest: A)has risen.B)has fallen.C)has remained the same.D)insufficient information given.Question: 38 - 28205 If the Fed wanted to expand the money supply they would probably: A)reduce taxes.B)raise the discount rate.C)purchase T-bills on the open market.D)increase government expenditures.Question: 39 - 28208 If the money supply increases and the price level declines, according to the quantity theory of money: A)velocity declined and output rose; velocity remained constant and the growth rate in output rose more than enough to compensate for the decline in prices.B)velocity declined and output rose.C)velocity remained constant and the growth rate in output rose more than enough to compensate for the decline in prices.D)velocity and output declined.Question: 40 - 29292 Which of the following is the correct definition of the labor force? A)All people of working age (18+).B)Those people of working age (16+) who are either employed or seeking employment.C)Those people of working age (18+) who are either employed or seeking employment.D)All people of working age (16+) who are working.Question: 41 - 29294 In the basic Keynesian Aggregate Expenditure Model, given that C = personal consumption, I = private investment, G = government spending, and NX = net exports (exports imports), which of the following relationships is TRUE?Real gross domestic product (GDP) = A)planned C+I+G+NX.B)planned C+I-G-NX.C)planned C+I+G-NX.D)planned C-I-G-NX.Question: 42 - 29295 In the Keynesian Model, equilibrium occurs when expenditures are equal to output. If total output is greater than planned aggregate expenditures, then the tendency is for the economy to: A)expand.B)contract.C)create a new equilibrium at a higher level.D)rapidly expand.Question: 43 - 29296 Which of the following is NOT one of the three basic functions of money? A)Medium of exchange.B)Store of value.C)Tangible asset.D)Unit of account.Question: 44 - 29297 Which of the following statements regarding the money supply is FALSE? A)M1 is the narrowest definition of money.B)M1 is the most common measure used for analysts trying to compare the money supply across periods.C)M2 is relied on more heavily when comparing the money supply across periods.D)Credit cards do not provide purchasing power, but merely are a facilitator of purchasing power.Question: 45 - 29298 Which of the following statements is FALSE regarding the demand and supply of money? A)As nominal GDP increases as the result of inflation and/or increased output, the demand for money increases.B)The supply of money is determined by the monetary authority and is not affected by changes in interest rates.C)The supply of money curve is vertical.D)As the Fed reduces the money supply, interest rates fall.Question: 46 - 29299 The Phillips curve indicates a trade-off between: A)inflation and output.B)inflation and the unemployment rate.C)unemployment and