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 **Free CFA Level 1 Practice Test 4 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: 381:**

If the level of confidence is lowered from 95% to 90%, but the allowable error and the standard deviation remain the same, what happens to the required sample size?

**Option A**: None of these answers.

**Option B**: Decreases.

**Option C**: Increases.

**Option D**: Remain unchanged.

**Show/Hide Answer**

**Option B : Decreases.**

This is related to the degree or confidence and the maximum error allowed. If you want to have a lower degree of confidence, you can have a smaller sample size (given that the standard deviation is constant). If you want 100% confidence, you want to use the whole population as your sample.

**CFA Level 1 Exam Question No: 382:**

Affirmative action commitments by industrial organizations have led to an increase in the number of women in executive positions. Satellite Office Systems has vacancies for two executives, which it will fill from among four women and six men. What is the probability that no woman is selected?

**Option A**: None of these answers.

**Option B**: 2/15.

**Option C**: 1/3.

**Option D**: 8/15.

**Option E**: 1/5.

**Show/Hide Answer**

**Option C : 1/3.**

Probability of both positions being filled by men = 6/10*5/9 = 1/3.

**Free CFA Level 1 Mock Exam Question No: 383:**

Which measure of central tendency is found by arranging the data from low to high and selecting the middle value?

**Option A**: Geometric mean.

**Option B**: Median.

**Option C**: None of these answers.

**Option D**: Mean.

**Option E**: Mode.

**Show/Hide Answer**

**Option B : Median.**

This is exactly how the median is found. Make sure you know how to find the median in a frequency distribution also.

**CFA Level 1 Free Practice Question No: 384:**

How much would an original deposit of $500 grow to be after 8 and a half years, if the deposit earns interest at 6.5% per year, compounded quarterly?

**Option A**: $853.97.

**Option B**: $573.42.

**Option C**: $4,254.58.

**Option D**: $837.51.

**Option E**: $864.95.

**Show/Hide Answer**

**Option A : $853.97.**

The Correct Answer is E. On the BAll Plus, press 500 PV, 0 PMT, 34 N, 6.5 divide 4 = I/Y, then press CPT FV. On the HP12C, press 500 PV, 0 PMT, 34 n, 6.5 ENTER 4 divide i, then press FV. Note that N = 34 quarters and the answer is displayed as a negative number. Make sure that the BAll Plus has the P/Y value set to 1.

**Free CFA Practice Question No: 385:**

You are examining a special group of 5 stock market indices. Of these 5, the returns were 4%, 8%, 12%, 16%, and 10%. What is the population standard deviation of this group of stock market indices?

**Option A**: 10%.

**Option B**: 4%.

**Option C**: 0%.

**Option D**: 16%.

**Show/Hide Answer**

**Option B : 4%.**

The population standard deviation is the positive square root of the population variance. The population variance is equal to the sum of the squared differences between each population member and the population mean, divided by the number of items in the population. In this case, we have a mean of 10%. The first squared difference will be (4% – 10%)^2 =

0.0036. The others will be 0.0004, 0.0004, 0.0036, and 0. The sum of these squared differences is 0.008, and divided by 5, we get 0.0016 = 16%%. The square root of this gives us our population standard deviation of 4%.

**CFA Level 1 Sample Question No: 386:**

What quarterly payment is required beginning one period from today to pay off a $3,000 debt, if interest accrues at 6% per year, compounded quarterly, and the debt is to be retired in 10 years?

**Option A**: $107.41.

**Option B**: $88.63.

**Option C**: $114.29.

**Option D**: $87.83.

**Option E**: $100.28.

**Show/Hide Answer**

**Option E: $100.28.**

On the BAII Plus, press 40 N, 6 divide 4 = 1/Y, 3000 PV, 0 FV, CPT

PMT. On the HP12C, press 40 n, 6 ENTER 4 divide i, 3000 PV, 0

FV, PMT. Note that the answer will be displayed as a negative number. Make sure the BAll Plus has the P/ value set to 1.

**Free CFA Level 1 Quiz Question NO: 387:**

You wish to count the number of ways in which n objects can be assigned to k different categories, with n_I members in the *i*th category. The counting method you should use is:

**Option A**: The permutation rule.

**Option B**: The binomial formula.

**Option C**: None of these answers is correct.

**Option D**: The multinomial formula.

**Show/Hide Answer**

**Option D : The multinomial formula.**

The number of ways that you can arrange n objects so that there are n_1 of one kind, n_2 of another kind, and so on, up to n_k of a kth kind, is found by using the multinomial formula: n! / [(n_1)! * (n 2)! * …. * (n _k)!].

**Free CFA Level 1 Quiz Question NO: 388:**

If you owe 3 debts ($800 due 3 months from now, $900 due 7 months from now, and $1,200 due 11 months from now), what single payment can you make today to settle them, if interest is assessed at 10% per year, compounded monthly?

**Option A**: $2,387.29.

**Option B**: $2,600.00.

**Option C**: $3,552.39.

**Option D**: $2,724.84.

**Option E**: $2,504.88.

**Show/Hide Answer**

**Option D : $2,724.84.**

Find the answer to this question by solving 3 compound interest problems. On the BAIl Plus, press 3 N, 10 divide 12 = I/M, 0 PMT, 800 FV, CPT PV which yields B$849.21. Then press STO 1. Then press 7 N, 900 FV, CPT PV, which yields $780.33. Then press + RCL 1 = STO 1. Then press 11 N, 1200 FV, CPT PV, which yields $1,095.31. Press + RCL 1 = to see the answer. On the HP12C, press 3 n, 10 ENTER 12 divide I, O PMT, 800 FV, PV. Then press STO 1. Then press 7 n, 900 FV, PV. Then press RCL 1 + STO 1. Then press 11 n, 1200 FV, PV. Press RCL 1 + to see the answer. Make sure the BAll Plus has the P/Y value set to 1.

**Free CFA Practice Question No: 389:**

If an investor who has a required rate of return of 7% per year pays $1,000 for a five-year ordinary annuity, the annuity pays per year.

**Option A**: $244.

**Option B**: $256.

**Option C**: $271.

**Option D**: $263.

**Show/Hide Answer**

**Option A : $244.**

If the annuity pays C per year, we have 1,000 = C/0.07*(1-1 /(1.07^5)) => C = 1,000*0.07/0.287 = 244.

**CFA Mock Exam Free Question No: 390:**

For a standard normal distribution what is the probability that z is greater than 1.75?

**Option A**: 0.4599.

**Option B**: 0.0401.

**Option C**: None of these answers.

**Option D**: 0.9599.

**Option D**: 0.0459.

**Show/Hide Answer**

**Option B : 0.0401.**

The area under the curve for z = 1.75 is 0.4599. Therefore, 0.4599*2 = 0.9198. We want z >1.75. So we want (1 – 0.9198/2 = 0.0401.