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 Practice Test 38 Questions Level 1 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: 371:
At a local burger joint, 3 workers receive $5.3 per hour, 4 workers receive $4.9 per hour and 2 workers receive $8.1 per hour. The average pay of a worker at the joint is __________.
Option A: $5.18.
Option B: none of these answers.
Option C: $5.74.
Option D: $6.10.
Show/Hide Answer
Option c : $5.74.
There are 3 + 4 + 2 = 9 workers. The total wages paid equal 3*5.3 + 4*4.9 + 2*8.1 = $51.7. The average pay equals 51.7/9 = $5.74
CFA Level 1 Exam Question No: 372:
What semiannual deposit is needed to accumulate $8,000 in 5 years if the account pays 7% per year, compounded semiannually, assuming that the first deposit is made in 6 months and also assuming that the account already has $1,250 in it today?
Option A: $336.15.
Option B: $677.44.
Option C: $559.52.
Option D: $278.01.
Option E: $531.63
Show/Hide Answer
Option E : $531.63
On the BAII Plus, press 10 N, 7 divide 2 = I/Y, 1250 PV, 8000 +/- FV, CPT PMT. On the HP 12C, press 10 n, 7 ENTER 2 divide i, 1250 PV, 8000 CHS FV, PMT. Note that the answer this time is a positive number. This means that the $531.63 is a deposit in addition to the $1,250 original deposit. The $5,000 is entered as a negative number, because the $1,250 and the $531.63 are deposits and the $8,000 is a withdrawal. Make sure the BAII Plus has the value of P/Y set to 1.
Free CFA Level 1 Mock Exam Question No: 373:
If you buy an item and pay for it with 48 monthly payments of $75, beginning next month, what was the cash price today, if interest accrues at 13% per year, compounded monthly?
Option A: $575.29.
Option B: $44.71.
Option C: $2,795.64.
Option D: $2,904.12.
Option E: $2,598.42.
Show/Hide Answer
Option C : $2,795.64.
The cash price would be the present value of the payments made using the specified interest rate. On the BAll Plus, press 48 N, 13 divide 12 = 1/Y, 75 PMT, 0 FV, CPT PV. On the HP12C, press 48 n, 13 ENTER 12 divide i 75 PMT, O FV, P. Note that the answer will be shown as a negative number. Make sure the BAll Plus has the P/Y value set to 1.
CFA Level 1 Free Practice Question No: 374:
Theta Corp.’s stock is expected to appreciate 6% per year. If no dividends are paid out over the next 5 year and the current stock price is $28, what’s the expected price in 5 years?
Option A: $39.6.
Option B: $37.5.
Option C: $41.2.
Option D:$34.9.
Show/Hide Answer
Option B : $37.5.
The expected price in 5 years is 28*(1.06^5) = 37.5.
Free CFA Practice Question No: 375:
The lowest significance level at which the null hypothesis can be rejected is called the:
Option A: F-statistic of the test.
Option B: t-value of the test.
Option C: p-value of the test.
Option D: critical value of the test.
Option E: none of these answers.
Show/Hide Answer
Option C : p-value of the test.
The lowest significance level at which the null hypothesis can be rejected is called the p-value of the test. Thus, if the p-value is less than the significance level, the null hypothesis can be rejected at that significance level.
CFA Level 1 Sample Question No: 376:
What monthly payment, beginning next month, would pay off a debt of $1,000 over 15 months, if the interest rate on the debt is 18% per year, compounded monthly?
Option A: $5.12.
Option B: $66.67.
Option C: $74.94.
Option D: $68.92.
Option E: $76.51.
Show/Hide Answer
Option C : $74.94.
On the BAII Plus, press 15 N, 18 divide 12 = I/Y, 1000 PV, O FV,
CPT PMT. On the HP12C, press 15 N, 18 ENTER 12 divide i, 1000 PV, O FV, PMT. Note that the answer will be displayed as a negative number. Make sure the BAll Plus has the value of P/Y set to 1.
Free CFA Level 1 Quiz Question NO: 377:
Suppose 1,600 of 2,000 registered voters sampled said they planned to vote for the Republican candidate for president. Using the 0.95 degree of confidence, what is the interval estimate for the population proportion (to the nearest tenth of a percent)?
Option A: 77.7% to 82.3%.
Option B: 78.2% to 81.8%.
Option C: 69.2% to 86.4%.
Option D: None of these answers.
Option E: 76.5% to 83.5%.
Show/Hide Answer
Option B : 78.2% to 81.8%.
Interval estimate can be found from p +/- z[p(1-p/n]^0.5. Here we
have n = 2000, p = 1600/2000 = 0.8 and z = 1.96 (for 95%).
Therefore 0.8 +/- 1.96*0.008944 and we get 0.7825 and 0.8175.
Free CFA Level 1 Quiz Question NO: 378:
What is the present value today of these annual cash flows: $5,000, $4,000, $3,000, $2,000, $1,000? Assume the first cash flow occurs 1 year from today and an interest rate of 8% per year, compounded annually.
Option A: $12,854,32.
Option B: $15,000.
Option C: $13,598.41.
Option D: $12,591.14.
Option E: $5,000.
Show/Hide Answer
Option D : $12,591.14.
You could solve this question using 5 different compound interest problems, but it is easier to solve them using the calculator’s cash flow functions. On the BAII Plus, press CF 2nd CLRWork 0 ENTER DownArrow 5000 ENTER DownArrow DownArrow 4000 ENTER DownArrow DownArrow 3000 ENTER DownArrow DownArrow 2000 ENTER DownArrow DownArrow 1000 ENTER DownArrow DownArrow 2nd Quit. Then press NPV 8 ENTER DownArrow CPT. On the HP12C, press these keys: 0 BlueShift CFo 5000 BlueShift CFj 4000 BlueShift CF 3000 BlueShift CFj 2000 BlueShift CFj 1000 BlueShift CFj. Then press 8 i, YellowShift NPV. The “DownArrow” represents the downward-pointing arrow on the top row of the
BAII Plus keyboard.
Free CFA Practice Question No: 379:
Which of the following are true assumptions underlying linear regression?
(1) For each value of X, there is a group of Y values which are normally distributed
(2) The means of these normal distributions of Y values all lie on the straight line of regression
(3) The standard deviations of these normal distributions are equal
Option A: All of them.
Option B: None of them.
Option C: Only (2) and (3).
Option D: Only (1) and (3).
Option E: Only (1) and (2).
Show/Hide Answer
Option A : All of them.
All are part of the assumptions of the linear regression. Make sure you know all the assumptions.
CFA Mock Exam Free Question No: 380:
The average cost of tuition, room and board at a small private liberal arts college is reported to be $8,500 per term, but a financial administrator at Moravian College believes that the average cost is much higher. A study was conducted using 150 small liberal arts colleges and findings showed that the average cost per term is $9,000 with a standard deviation of $1,200. Let alpha = 0.05. The Ho: Mu less than or equal to $8,500. H1: Mu is bigger than $8,500. What is the critical z-value for this test?
Option A: -1.645.
Option B: None of these answers.
Option C: +1.645.
Option D: -1.96.
Option E: +1.96.
Show/Hide Answer
Option C : +1.645.
From the hypothesis, this is a one tailed test. Since alpha is 0.05. We have 0.05, which gives us a z value of +/1.645. From the Ho we see that the rejection region lies to the right of the mean, so the critical value is +1.645.
