Free CFA Institute CFA-Level-I Exam Questions
Absolute Free CFA-Level-I Exam Practice for Comprehensive Preparation
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CFA Institute CFA-Level-I Exam Questions
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Provided By: CFA Institute
- Exam: CFA Level I Chartered Financial Analyst
- Certification: CFA Level I
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Total Questions: 3837
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Updated On: Sep 22, 2026
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Rated: 4.9 |
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Online Users: 7674
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Question 1
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Sally Ferguson, CFA, is a hedge fund manager. Ferguson utilizes both futures and forward contracts in thefund she manages. In speaking with a client, Ferguson makes the following statements to answer theirquestions about futures and forward contracts:Statement 1:A futures contract is an exchange traded instrument with standardized features.Statement 2:Forward contracts are marked-to-market on a daily basis to reduce credit risk to both counterparties.Indicate whether Statement 1 and Statement 2 are most likely correct or incorrect.
Answer: A
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Sally Ferguson, CFA, is a hedge fund manager. Ferguson utilizes both futures and forward contracts in thefund she manages. In speaking with a client, Ferguson makes the following statements to answer theirquestions about futures and forward contracts:Statement 1:A futures contract is an exchange traded instrument with standardized features.Statement 2:Forward contracts are marked-to-market on a daily basis to reduce credit risk to both counterparties.Indicate whether Statement 1 and Statement 2 are most likely correct or incorrect.
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Question 2
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In a research report, a securities analyst with Smith, Kleen & Beetchnutty claims that the newly issuedperpetual preferred stock of Ludicrous Telecom should be purchased because its current market price doesnot reflect its "intrinsic value." The analyst cites a higher valuation as evidenced by the results produced bythe perpetuity valuation model. Assume the following information:Market price of Ludicrous Telecom preferred stock: $20.75Quarterly preferred dividend: $0.80Expected return on the market: 14.75% per yearRisk-free rate of return: 5.00% per yearGiven this information, are the claims of the analyst justified? If not, at what price is the preferred stock ofLudicrous Telecom fairly valued?
Answer: C
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In a research report, a securities analyst with Smith, Kleen & Beetchnutty claims that the newly issuedperpetual preferred stock of Ludicrous Telecom should be purchased because its current market price doesnot reflect its "intrinsic value." The analyst cites a higher valuation as evidenced by the results produced bythe perpetuity valuation model. Assume the following information:Market price of Ludicrous Telecom preferred stock: $20.75Quarterly preferred dividend: $0.80Expected return on the market: 14.75% per yearRisk-free rate of return: 5.00% per yearGiven this information, are the claims of the analyst justified? If not, at what price is the preferred stock ofLudicrous Telecom fairly valued?
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Question 3
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Which of the following is not a stage in the industry life cycle?
Answer: B
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Which of the following is not a stage in the industry life cycle?
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Question 4
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In a classified balance sheet the following is always true:
Answer: B
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In a classified balance sheet the following is always true:
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Question 5
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An investment advisor with Churn Brothers Brokerage states that he uses the "bottom up" approach toidentify promising investment opportunities. When this investment advisor is evaluating an investment usingthe bottom up approach, he would begin by doing which of the following?
Answer: A
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An investment advisor with Churn Brothers Brokerage states that he uses the "bottom up" approach toidentify promising investment opportunities. When this investment advisor is evaluating an investment usingthe bottom up approach, he would begin by doing which of the following?