# Free CFA Level 1 Practice Test 44 Questions Bank Answer Keys 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 Study Notes and Free CFA Level 1 Practice Test 44 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: 431:

If the quoted rate for an investment is 8% p.a. compounded monthly. Determine the equivalent continuously compounded rate.

Option A : 8.3%

Option B : 7.92%

Option C : 7.97%

Option C : 7.97%

CFA Level 1 Exam Question No: 432:

M Ltd is planning to undertake a project which is expected to generate an NPV of \$60 million. Company has a current share price of \$20 and has \$15 million shares outstanding. Given this information is new to market, what is the expected new share price of the Company?

Option A: 30

Option B: 24

Option C: 20

Option B : 24

Free CFA Level 1 Mock Exam Question No: 433:

Which is the following are recommended procedure for compliance of standard I(D)?

Option A: Conduct background verification for potential

Option B: Conducting regular ethics training for existing employees.

Option C: Both the statements are correct.

Option A : Conduct background verification for potential

As per standard I(D), Conducting background checks is part of recommended procedure of compliance. Conducting training is not part of recommended procedures under standard I(D) but under standard IV(C).

CFA Level 1 Free Practice Question No: 434:

Using below diagram, calculate the expected return and risk of portfolio:

Option A: Expected Return: 12.75% Risk: 3.8%

Option B: Expected Return: 11% ,  Risk: 4.5%

Option C: Expected Return: 12.75 , Risk: 4.5%

Option C: Expected Return: 12.75 , Risk: 4.5%

Free CFA Practice Question No: 435:

Using below joint probability table, calculate the correlation between stock and index.

Option A: 0.996

Option B: 0.951

Option C: 0.987

Option A: 0.996

CFA Level 1 Sample Question No: 436:

James is an senior investment banking analyst in large money management firm. Не is currently working on an MNPI deal of merger between two well known listed firm.Не was travelling in a public conveyance when he received call from his office. In the conversation there was detailed discussion about the merger and purchase price and expected share price. Is this violation of standard II(A)?

Option A: This is not a violation of standard as he should always be responsive to his employer.

Option B: This is not a violation as James did not had any intention to disclosed such information.

Option C:This is a violation as standard II(A) requires member to restrict the number of people who are aware of the
MNPI information.

Option C : This is a violation as standard II(A) requires member to restrict the number of people who are aware of the MNPI information.

Free CFA Level 1 Quiz Question NO: 437:

Given below stream of cashflows for project A & B, analyze which of the following statement is correct:

Option A: As we move towards the right side of crossover rate in NPV profile, NPV of project В will be higher than NPV of project А.

Option B: Using 10% discount rate, NPV favors project В and IRR favors project A; we will select project B.

Option C: Using 15% discount rate, NPV favors project A and IRR favors project B; we will select project А.

Option B : Using 10% discount rate, NPV favors project В and IRR favors project A; we will select project B.

Free CFA Level 1 Quiz Question NO: 438:

Willian has a client, Ramirez, who informed him that she has large quantity of shares of R Ltd which is a small-cap stock with thin trading volumes. In order to sell all the shares of Ramirez, William entered into a series of block trades for days. To ensure that volume of R Ltd doesn’t drop, William spread false rumors’ in market quoting buy recommendation for stock. In few days, the block trade gets completed with minimum effect on share price. Which statement is correct?

Option A: William is engaged in information based manipulation not transaction based manipulation

Option B: William is engaged in transaction based manipulation not information based manipulation

Option C: William is engaged in both transaction & information based manipulation.

Option A : William is engaged in information based manipulation not transaction based manipulation

Free CFA Practice Question No: 439:

Listed below are the three steps in portfolio management along with three activities. You need to match activity to the step it falls:

Option A: Planning-2; Execution-1; Feedback-3

Option B: Planning-1; Execution – 2; Feedback-3

Option C: Planning-2; Execution-3; Feedback-1

Option C : Planning-2; Execution-3; Feedback-1

CFA Mock Exam Free Question No: 440:

Ziglar is investment manager for Green family foundation and places his trades through Gray Inc brokerage firm. While one transaction was correctly communicated by Ziglar, due to some technical error within Gray Inc, the transaction was slipped which resulted in financial loss to foundation. Gray Inc agreed to cover the loss for the client and Ziglar allows them to do so at zero cost to foundation. Ziglar has

Option A: Violated standard III(A) as it is breach of fiduciary duties.

Option B: Not violated standard III(A) as some trading errors are part of work and is bound to happen.

Option C: Violated standard III (A) as he failed to seek best execution