CFA Institute CFA Level I Chartered Financial Analyst Exam Questions

Which of the following are considered basic characteristics of a security and must be included in research reports?

Ted McGovern works in the economics branch of a government bank regulator. When he arrives at work this morning and checks his voicemail, he has a message from the Regional Director asking him to calculate the expected rate of return for a stock market series. More detailed information will be forthcoming in an e-mail. Fortunately, McGovern still has his CFA Program study guides in his office and finds the correct formulas. McGovern logs on to the computer network and downloads an attachment that contains the following estimates:

Overall Assumptions:

Index Estimates – Bull Market:

Index Estimates – Bear Market:

The expected return on the index is closest to:

Daniel Tipton and Jesse Torrez are first-year MBA students at the Haas School of Business. Torrez has an economics background, but Tipton’s background is in music. To help Tipton study one of the main tenets of competition theory, Torrez creates the following question and asks Tipton to identify the statement that is most inconsistent with Porter’s five forces. Which statement should Tipton select?

Consider the following information for Magical Interactions, Inc.

Based on the assumptions above, which of the following statements is TRUE?

Assume an investor makes the following investments:

During year one, the stock paid a $5.00 per share dividend. In year 2, the stock paid a $7.50 per share dividend. The investor’s required return is 35.0 percent.

The dollar-weighted return is: