CFA Level 1 Mock Exam 46 Practice Questions Free 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 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 BMutually Exclusive: Accept project B as it has higher IRR

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

Option CMutually 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

CFA Notes Materials and QBanks

CFA Level 1 Notes
CFA Level 1 QBank: 1 to 10CFA Level 1 QBank: 11 to 20
CFA Level 1 QBank: 21 to 30CFA Level 1 QBank: 31 to 40
CFA Level 1 QBank: 41 to 50CFA Level 1 QBank: 51 to 60
CFA Level 1 QBank: 61 to 70CFA Level 1 QBank: 71 to 80
CFA Level 1 QBank: 81 to 90CFA Level 1 QBank: 91 to 100
CFA Level 1 QBank: 101 to 110CFA Level 1 QBank: 111 to 120
CFA Level 1 QBank: 121 to 130CFA Level 1 QBank: 131 to 140
CFA Level 1 QBank: 141 to 150CFA Level 1 QBank: 151 to 160
CFA Level 1 QBank: 161 to 170CFA Level 1 QBank: 171 to 180
CFA Level 1 QBank: 181 to 190CFA Level 1 QBank: 191 to 200
CFA Level 1 QBank: 201 to 210CFA Level 1 QBank: 211 to 220
CFA Level 1 QBank: 221 to 230CFA Level 1 QBank: 231 to 240
CFA Level 1 QBank: 241 to 250CFA Level 1 QBank: 251 to 260
CFA Level 1 QBank: 261 to 270CFA Level 1 QBank: 271 to 280
CFA Level 1 QBank: 281 to 290CFA Level 1 QBank: 291 to 300
CFA Level 1 QBank: 301 to 310CFA Level 1 QBank: 311 to 320
CFA Level 1 QBank: 321 to 330CFA Level 1 QBank: 331 to 340
CFA Level 1 QBank: 341 to 350CFA Level 1 QBank: 351 to 360
CFA Level 1 QBank: 361 to 370CFA Level 1 QBank: 371 to 380
CFA Level 1 QBank: 381 to 390CFA Level 1 QBank: 391 to 400
CFA Level 1 QBank: 401 to 410CFA Level 1 QBank: 411 to 420
CFA Level 1 QBank: 421 to 430CFA Level 1 QBank: 431 to 440
CFA Level 1 QBank: 441 to 450CFA Level 1 QBank: 451 to 460
CFA Level 1 QBank: 461 to 470
CFA Level 1 QBank: 481 to 480CFA Level 1 QBank: 491 to 500
CFA Level 1 QBank: 501 to 510CFA Level 1 QBank: 511 to 520
CFA Level 1 QBank: 521 to 530CFA Level 1 QBank: 531 to 540
CFA Level 1 QBank: 541 to 550CFA Level 1 QBank: 551 to 560
CFA Level 1 QBank: 561 to 570CFA Level 1 QBank: 571 to 580
CFA Level 1 QBank: 581 to 590CFA Level 1 QBank: 591 to 600
CFA Level 1 QBank: 601 to 610CFA Level 1 QBank: 611 to 620

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