CFA Level 1 Exam 57 Questions Bank Answer Keys AMBIPi

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 57 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: 561:

Which of the following is most likely considered an example of matrix pricing when determining the cost of debt?

Option A : Debt-rating approach only

Option B : Yield-to-maturity approach only

Option C : Both the yield-to-maturity and the debt-rating approaches

Option B : Yield-to-maturity approach only

CFA Level 1 Exam Question No: 562:

A company’s data are provided in the following table:
Cost of debt                       10%
Cost of equity                    16%
Debt-to-equity ratio (D/E)   50%
Tax rate                             30%
The weighted average cost of capital (WACC) is closest to:

Option A: 13%

Option B: 11.5%

Option C: 14.0%

Option A : 13%

Free CFA Level 1 Mock Exam Question No: 563:

Which action is most likely considered a secondary source of liquidity?

Option A: Renegotiating current debt contracts to lower interest payments

Option B: Increasing the efficiency of cash flow management

Option C: Increasing the availability of bank lines of credit

Option A : Renegotiating current debt contracts to lower interest payments

CFA Level 1 Free Practice Question No: 564:

The following information is available for a firm:
Revenue              \$800,000
Variable cost        400,000
Fixed cost            200,000
Operating income 200,000
Interest               60,000
Net income          140,000
The firm’s degree of total leverage (DTL) is closest to:

Option A: 1.43

Option B: 2.86

Option C: 2.00

Option B : 2.86

Free CFA Practice Question No: 565:

Business risk most likely incorporates operating risk and:

Option A: Interest rate risk

Option B: Sales risk

Option C: Financial risk

Option B : Sales risk

CFA Level 1 Sample Question No: 566:

A trader who owns shares of a stock currently trading at \$100 per share places a “GTC, stop \$90, limit \$85 sell” order (GTC means good till cancelled). Assuming the specified stop condition is satisfied and the order becomes executed, which of the following statements is most accurate?

Option A: The trader faces a maximum realized loss of \$15

Option B: The order becomes a market order when the price falls below \$85 and remains valid for execution

Option C: The order will be executed at either \$90 or \$85

Option A : The trader faces a maximum realized loss of \$15

Free CFA Level 1 Quiz Question NO: 567:

A Japanese exporter will sell US dollars for Japanese Yen in the quote- driven currency markets. Which of the following statements best describes her currency exchange transactions?

Option A: Her counterparties are dealers

Option B: This currency exchange transaction takes place in organized exchanges

Option C: She will pay commissions for exchange services

Option A : Her counterparties are dealers

Free CFA Level 1 Quiz Question NO: 568:

A market index contains the following two securities:

The total return on an equal-weighted basis is closest to:

Option A: -1.75%

Option B: 2.78%

Option C: 2.25%

Option C : 2.25%

Free CFA Practice Question No: 569:

The advantages to an investor owning convertible preference shares of a company most likely include:

Option A: an opportunity to receive additional dividends if the company’s profits exceed a pre-specified level

Option B: preference dividends that are fixed contractual obligations of the company

Option C: less price volatility than the underlying common shares

Option C : less price volatility than the underlying common shares

CFA Mock Exam Free Question No: 570:

The index weighting that results in portfolio weights shifting away from securities that have increased in relative value toward securities that have fallen in relative value whenever the portfolio is rebalanced is most accurately described as: