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%.

**Show/Hide Answer**

**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.

**Show/Hide Answer**

**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.

**Show/Hide Answer**

**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%.

**Show/Hide Answer**

**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.

**Show/Hide Answer**

**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.

**Show/Hide Answer**

**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.

**Show/Hide Answer**

**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.

**Show/Hide Answer**

**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.

**Show/Hide Answer**

**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.

**Show/Hide Answer**

**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

204-636

215525

207-39

21224

214416

208-24