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 Mock Exam 36 Practice Questions Free 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: 341:
What annual interest rate, compounded annually, would cause a series of 10 deposits of $500 to accumulate to $9,000, if the first deposit is made one year from today?
Option A: 12.52%.
Option B: 15.38%.
Option C: 11.12%.
Option D: 8.04%.
Option E: 10.09%.
Option A : 12.52%.
On the BAII Plus, press 10 N, 0 PV, 500 PMT, 9000 +/- FV, CPT I M. On the HP120, press 10 n, 0 PV, 500 PMT, 9000 CHS FV, i. Make sure the BAII Plus has the P/Y value set to 1.
CFA Level 1 Exam Question No: 342:
How much would you need to deposit today in order to be able to withdraw $500 in 2 years and $700 in 4 years, if the account has nothing in it today and interest is 6% per year, compounded annually?
Option A: $999.46.
Option B: $1,007.54.
Option C: $445.00.
Option D: $1,200.00.
Option E: $950.51.
Option A : $999.46.
Work this question as two compound interest problems. On the BAII Plus, press 2
N, 6 I/Y, O PMT, 500 FV, CPT PV, which yields $445.00, Then press STO 1.
Then press 4 N, 700 FV, CPT P.V, which yields $554.46. Then press + RCL 1 = to
see the answer. On the HP12C, press 2 n, 6 i, 0 PMT, 500 FV, PV. Then press STO 1. Then press 4 n, 700 FV, PV. Then press RCL 1 + to see the answer. Note that the answer will be displayed as a negative number.
Free CFA Level 1 Mock Exam Question No: 343:
You have invested in a long-term, fixed deposit account earning 4% per year for 20 years, compounded annually. Your friend has invested in a similar account but one that earns 4.25% per year, compounded semi-annually. If each of you deposited $5,000, by what amount is your friend wealthier than you due to this deposit?
Option A: $538.
Option B: $601.
Option C: $639.
Option D: $521.
Option C : $639.
The friend’s account has 5,000*(1 +0425/2)^40 = 11,595 at the end of 20 years. Your account has 5,000*(1.04^20) = 10,956. The difference is $639.
CFA Level 1 Free Practice Question No: 344:
You are examining a group of 6 companies. Their average profit margins have been 49%, 10%, 5%, 35%, 30%, and 30%. What is the range of profit margins?
Option A: 49.0%.
Option B: 30.0%.
Option C: 44.0%.
Option D: 5.0%.
Option C : 44.0%.
The range = the maximum value – the minimum value. Here, we have 49% – 5% = 44%.
Free CFA Practice Question No: 345:
If the hypothesized value of a parameter under the null hypothesis lies outside the confidence interval, the null hypothesis:
Option A: none of these answers.
Option B: cannot be rejected at the corresponding significance level.
Option C: should be rejected at the corresponding significance level.
Option D: is ill-specified.
Option C : should be rejected at the corresponding significance level.
The confidence interval specifies the range over which the true value of the estimated parameter can lie without rejecting the null hypothesis at the given level of significance.
CFA Level 1 Sample Question No: 346:
What is the area under the normal curve for z > 1.79?
Option A: None of these answers.
Option B: 0.4633.
Option C: 0.0401.
Option D: 0.9599.
Option E: 0.0367.
Option E : 0.0367.
From the z-tables, z = 1.79 is 0.4633. So 1 – 0.4633*2 = 0.0734. Since it is on each side of the curve, 0.0734/2 = 0.0367.
Free CFA Level 1 Quiz Question NO: 347:
What does it mean if r = -1.00?
Option A: High values of one variable are associated with low values of the other variable.
Option B: Dependent variable can be perfectly predicted by the independent variable.
Option C: All of the variation in the dependent variable can be accounted for by the independent variable.
Option D: Coefficient of non-determination equals zero.
Option E: All of these answers are correct.
Option E : All of these answers are correct.
All the above are properties or explanations of the coefficient of correlation being equal to -1.0.
Free CFA Level 1 Quiz Question NO: 348:
In a statistical regression estimation, the R-square is found to be 39% and the slope coefficient is -0.3. The percentage of variance of the dependent variable not explained equals
Option A: 0.30.
Option B: 0.61.
Option C: 0.09.
Option D: 0.39.
Option B : 0.61.
The R-square of the regression measures the amount of variance of the dependent variable explained by the independent variable.
This is given to be 39%. Hence, the amount not explained equals 100% – 39% = 61%.
Free CFA Practice Question No: 349:
A bell-shaped, symmetrical frequency distribution has a mean of 10. If 16% of the observations in the distribution are negative, what is the coefficient of variation of X?
Option A: 1.0.
Option B: 0.32.
Option C: 10.0.
Option D: 0.1.
Option A : 1.0.
The fraction of observations which are less than zero equals 16% i.e. the fraction of observations which are less than (mean – 10) equals 16% (given).
Since the distribution is symmetrical about the mean, this implies that the fraction of observations which are more than (mean + 10) also equals 16%.
Thus, the fraction of the observations lying between 0 and 20 equals 1-0.16-0.16 = 0.68. For a bell-shaped, symmetrical frequency distribution, 68% of the observations lie within one standard deviation of the mean. Hence, the standard deviation of the distribution equals 10. The coefficient of variation is then equal to standard deviation/mean = 10/10 = 1.
CFA Mock Exam Free Question No: 350:
A population consists of all the weights of all defensive tackles on Sociable University’s football team. They are: Johnson, 204 pounds; Patrick, 215 pounds; Junior, 207 pounds; Kendron, 212 pounds; Nicko, 214 pounds; and Cochran, 208 pounds. What is the population standard deviation (in pounds?
Option A: About 4.
Option B: None of these answers.
Option C: About 40.
Option D: About 100.
Option E: About 16.
Option A : About 4.
Population variance = (Sum of squared deviation from the mean)/N. The
mean is 210. Population variance = (36 + 25 + 9 + 4 + 16 + 4)/6 = 94/6 =
15.67. Population standard deviation is the square root of the population
variance = 3.958. xx-mean(x-mean\^2