Hi CFA Aspirants, welcome to AKVTutorials. Are you preparing for CFA Level 1, 2, 3 exams for making a career in CFA (Charted Financial Analyst). According to CFA Wikipedia, CFA The Chartered Financial Analyst (CFA) program is a postgraduate professional certification offered internationally by the American-based CFA Institute. A candidate who successfully completes the program and meets other professional requirements is awarded the “CFA charter” and becomes a “CFA charter holder”. Therefore, you need CFA Study Notes and CFA Level 1 Exam 47 Questions Bank Answer Keys AMBIPi
In this article, you will get Free CFA Level 1 Mock Exam Practice Questions.
Free CFA Level 1 Mock Practice Exam Questions Bank
Free CFA Level 1 Practice Question No: 461:
James is planning to start college after 3 years and plans to create fund for his college education. He will start investing required amount beginning at the end of year 1. He estimates that his college fees would be $10000 which is to be paid at the beginning of every year for 4 years. If the expected rate of interest is 8% before start of college and 5% during the college period, calculate the required amount that James should start saving.
Option A : $11,121.23
Option B : $9,984.68
Option C : $11,468.85
Show/Hide Answer
Option C : $11,468.85
CFA Level 1 Exam Question No: 462:
Given below is the risk-return of three different managers:
Calculate Sharpe ratio for manager A and Jensen’s alpha for manager C.
Option A : Sharpe Ratio: 0.83 Jensen’s Alpha 2.4%
Option B : Sharpe Ratio: 0.83 Jensen’s Alpha 0.9%
Option C : Sharpe Ratio: 0.92 Jensen’s Alpha 0.9%
Show/Hide Answer
Option B : 0.83 , 0.9%
Free CFA Level 1 Mock Exam Question No: 463:
Jerome Bergeron, CFA is subject to investigation conducted by CFA institute. The investigation is with regards to Jerome not conducting required due diligence. As part of investigation, PCP has requested detailed information with regards to clients IPS and asset allocation. Jerome will
Option A: Not violate the code & standards by revealing his clients IPS but he should not share asset allocation details.
Option B: Violate the code & standards by cooperating with CFA Institute PCP as the requested information is confidential and should not be shared with anyone except with explicit permission of client.
Option C: Not violate the code & standards by revealing both his clients IPS and asset allocation details.
Show/Hide Answer
Option C: Not violate the code & standards by revealing both his clients IPS and asset allocation details.
CFA Level 1 Free Practice Question No: 464:
Jacob is analyzing an automobile company demand of which is heavily dependent on state of economy. Given below economic scenarios, calculate expected demand for the Company.
Option A : Expected Units: 16238.5
Option B : Expected Units: 15437.5
Option C : Expected Units: 12488.5
Show/Hide Answer
Option B : 15,437.5
Free CFA Practice Question No: 465:
Based on below account details of a client, identify which of the following statement is correct?
0th day: Purchased 1 share for $50
1st year: Purchased 1 share for $54 and received dividend of $1.
2nd year: Sold both the shares @$65 per share.
Option A: MWROR will be greater than TWROR since maximum return is generated in year 2, during which highest amount was invested and since MWROR uses money as weights and it is effected by timing and amount of cashflows.
Option B: If this account is under control of client i.e. he can withdraw/introduce funds to account at his discretion, then MWROR is the apt measure to judge performance of portfolio manager.
Option C: MWROR will be lower than TWROR since maximum return is generated in year 2, during which highest amount was invested and since TWROR uses money as weights and it is effected by timing and amount of cashflow.
Show/Hide Answer
Option A : MWROR will be greater than TWROR since maximum return is generated in year 2, during which highest amount was invested and since MWROR uses money as weights and it is effected by timing and amount of cashflows.
CFA Level 1 Sample Question No: 466:
Fritz Yellow, CFA is working for Kroach Investments Inc. He finds his income from employment insufficient to meet his family expenses and hence is considering starting independent work on free time at weekends. The job is non-competing in nature and is not related to investment profession. Yellow starts the job without giving any notice to his employer. Yellow is.
Option A: In violation of standard IV(A) as even if the job is not competing in nature, he needs to inform and take prior consent from employer.
Option B: In violation of standard IV(A) because he is only allowed to do preparation for such service and cannot render such service while in employment.
Option C:Not in violation of standard IV(A) as the nature of service is non- competing and hence he is not required to take explicit permission from employer.
Show/Hide Answer
Option A : In violation of standard IV(A) as even if the job is not competing in nature, he needs to inform and take prior consent from employer.
Free CFA Level 1 Quiz Question NO: 467:
Below is the holding period return of three mutual funds:
Which fund has the highest annualized return?
Option A: X
Option B: Y
Option C: Z
Show/Hide Answer
Option B : Y
Free CFA Level 1 Quiz Question NO: 468:
Find the mean, range and mean absolute deviation for the following stock price data:
Option A: Mean = 25.95 Range = 4.8 MAD = 5.6
Option B: Mean = 25.95 Range = 4.8 MAD = 1.4
Option C: Mean = 34.6 Range = 3.1 MAD = 1.4
Show/Hide Answer
Option B : Mean = 25.95 Range = 4.8 MAD = 1.4
Free CFA Practice Question No: 469:
Determine which of the following statement is least accurate:
Option A: A Company reports increase in its debt-equity ratio from 0.4 to 0.5. All else remaining unchanged, this increase will result in increase in equity beta with asset beta remaining unchanged.
Option B: Management identifies a project which has IRR equal to its existing WACC. Company has strong access to equity market and plans to raise entire fund the new project by issuing equity. Hence, management is most likely to accept the project as project returns its cost of capital.
Option C: If risk-free rate in economy increases it will result in cost of both equity and debt capital to rise.
Show/Hide Answer
Option B : Management identifies a project which has IRR equal to its existing WACC. Company has strong access to equity market and plans to raise entire fund the new project by issuing equity. Hence, management is most likely to accept the project as project returns its cost of capital.
CFA Mock Exam Free Question No: 470:
Feb Lambert, CFA is an investment manager in a well known investment management firm. In one of the meetings with his clients, his client told him “if for any year, return on my portfolio exceed 20%, then you can use travel with your family to Switzerland at my cost”. Feb never intended to travel to Switzerland and hence he did not informed his employer.
Moore Saul, CFA is also investment manager in same firm. Her grandfather is a doctor and as a birthday gift, her grandfather offers her free medical check-up. Recently her grandfather’s investment account has been onboarded in her firm. Moore is considering to report her employer of the annual birthday gift.
As per Standard IV(B),
Option A: Feb is required to make disclosure and Moore is not.
Option B: Both Feb and Moore is required to make written disclosure to employer.
Option C: Neither Feb nor Moore is required to make disclosure to their employer.
Show/Hide Answer
Option A : Feb is required to make disclosure and Moore is not.
