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 Level 1 Mock Exam 46 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: 451:**

A fund reports net return of 10.6% for a particular period. The portfolio value at beginning of the period was $50 million and below are other details:

- Trading expense = $0.6 million;
- Administrative expense = $0.2 million;
- Tax rate = 25%;
- Expected inflation = 4%.

Calculate gross return and real return for investor.

**Option A** : 11% ,3.8%

**Option B** : 11% ,7.95%

**Option C** : 11.8% ,3.8%

**Show/Hide Answer**

**Option A : 11% ,3.8%**

**CFA Level 1 Exam Question No: 452:**

Given below is the data of two portfolios being managed by Kasey portfolio managers along with expected return based on economic scenarios and associated probabilities.

You are required to compute expected return for portfolio A and variance for portfolio В

**Option A**: 8.55 ,88.69

**Option B**: 6.55 ,88.69

**Option C**: 8.55 ,76.89

**Show/Hide Answer**

**Option A : 8.55 ,88.69**

**Free CFA Level 1 Mock Exam Question No: 453:**

Given below cash flow stream and information on NPV (calculated @10%) and IRR, determine which project(s) will be selected when:

1. Projects are mutually exclusive.

2. Projects are independent.

**Option A**: Mutually Exclusive: Accept project A because of higher NPV

Independent: Accept both the projects as both has positive NPV and IRR > Discounted rate

**Option B**: Mutually Exclusive: Accept project B as it has higher IRR

Independent: Accept both the projects as both has positive NPV and IRR > Discounted rate

**Option C**: Mutually Exclusive: Accept project A as it has higher IRR

Independent: Accept the project A as capital would be scarce with the firm.

**Show/Hide Answer**

**Option A : Mutually Exclusive: Accept project A because of higher NPV **

**Independent: Accept both the projects as both has positive NPV and IRR > Discounted rate**

**CFA Level 1 Free Practice Question No: 454:**

Qing Хао has been hired as an analyst at large investment management firm. She has been assigned with task of calculating standard deviation for a fund, return data of which is lost due to system failure. Only data available to her is working of her previous co-worker in which she computed variance of the fund, using past 5 years return, to be 18.9%. Co- worker assumed that 5 years represent the entire population but after inquiring, Qing comes to know that fund had a history of 10 years and hence, the data was sample. Qing is computing the sample standard deviation of the fund. She is most likely to conclude it to be:

**Option A**: 4.86%

**Option B**: 3.89%

**Option C**: 94.5%

**Show/Hide Answer**

**Option A : 4.86%**

**Free CFA Practice Question No: 455:**

Below is the amount of investment and beta of three securities that form part of portfolio:

Given expected market return is 10.5% and risk free rate is 4.4%, calculated expected return of portfolio.

**Option A**: 16.1%

**Option B**: 12.8%

**Option C**: 14.16%

**Show/Hide Answer**

**Option C : 14.16%**

**CFA Level 1 Sample Question No: 456:**

You are informed that a Company has a target debt-equity ratio of 1.5 and has below Marginal cost of capital (MCC) schedule:

Company is planning to raise an additional capital of $160 million to set up a new project. You are required to calculate WACC of the project assuming marginal tax rate to be 25%.

**Option A**: 6.2%

**Option B**: 5.4%

**Option C**: 4.95%

**Show/Hide Answer**

**Option B : 5.4%**

**Free CFA Level 1 Quiz Question NO: 457:**

Renato Liu, CFA has been researching on Aircrafts Ltd, an aircraft manufacturing company. He personally knows the CEO of Aircrafts Ltd and recently when he went to a coffee shop, he saw CEO of Aircrafts sitting with CEO of Fly high. From public sources, he knows that Fly high is thinking of modernizing its fleets and will be buying a good number of fleets. He concludes that most likely this order will be given to Aircrafts as they are industry leader. He places buy order for his clients based on his prior research and this development. Which of the following is accurate?

**Option A**: Renato violated the standard in MNPI by trading on such information.

**Option B**: Renato cannot place trade till he has approached management of Aircraft and requested them to disseminate this information at marketplace.

**Option C**: Renato did not violate the standard on MNPI.

**Show/Hide Answer**

**Option D : Renato did not violate the standard on MNPI.**

**Free CFA Level 1 Quiz Question NO: 458:**

X Ltd is planning to undertake a project which will have following cashflows: (Fig in million)

Year 0: -500, Year 1: 200; Year 2: 400; Year 3: 250.

If the rate of return is 10%, calculate NPV of project.

Joseph has started investment scheme in which he pays $200 every month at the beginning of each month for period of 30 months. If scheme pays in semi-annual compounding, what is the semi-annual compounding rate if maturity value is $6750.

**Option A**: X Ltd 200 , Joseph 9.16%

**Option B**: X Ltd 200 , Joseph 8.99%

**Option C**: X Ltd 238 , Joseph 8.99%

**Show/Hide Answer**

**Option A : X Ltd 200 , Joseph 9.16%**

**Free CFA Practice Question No: 459:**

A Company reports following forecasted data during life of project it is considering to execute:

- Average annual net income: $16000
- Opening book value of investment: $60000
- Closing book value of investment: Nil
- Average market value of investment:

Management uses accounting rate of return and follows benchmarking approach to decide whether to accept/reject the project. They expect a minimum ARR of 40%. You are required to calculate ARR and decide whether Company should accept or reject the project.

**Option A**:53.3%; Accept

**Option B**: 35.6%; Reject

**Option C**: 35.6%; Accept

**Show/Hide Answer**

**Option A: 53.3%; Accept**

**CFA Mock Exam Free Question No: 460:**

Gillian Hurwich, CFA is a mutual fund manager managing equity growth fund, The mandate of mutual fund says that manager should invest in equities with aggressive growth. Gillian allocates 50% of the fund assets to technology stocks, 40% to US treasury bonds and balance 10% as cash.

Gillian is most likely in violation of code and standards with regards to:

**Option A**: Her allocation in technology stocks.

**Option B**: Her allocation in treasury bonds

**Option C**: Keeping 10% of funds as cash give she should invest 100% of asset under management to generate maximum return.

**Show/Hide Answer**

**Option B : Her allocation in treasury bonds**