CFA Exam Levels 1 Sample Question With Solution
We have chosen a large number of Free CFA Level 1 practise questions from our comprehensive question bank to assist you in passing your CFA Exam.
Q1.If a firm’s long-run average cost of production increases by 15 percent as a result of an 8 percent increase in production the firm is most likely experiencing:
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constant returns to scale.
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economies of scale
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diseconomies of scale.
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None of These
Q2. A company has just issued $5 million of mandatory redeemable preferred shares with a par value of $100 per share and a 7 percent dividend. The issue matures in 5 years. Which of the following statements is least likely correct? The company’s:
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interest coverage ratio will deteriorate.
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Debt / Total capital ratio will improve.
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preferred shareholders will rank below debt holders should the company file for bankruptcy.
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None of These
Q3. Regarding the definition of the firm, the GIPS Standards require all of the following except:
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a firm’s organization alters historical composite results.
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firms must be defined as investment firms.
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total firm assets must be the aggregate of the market value of all discretionary and nondiscretionary assets under management.
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None of These
Q4. Under which measurement scale is data categorized, but not ranked?
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A nominal scale.
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An ordinal scale.
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An interval scale
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None of These
Q5. The joint probability of events A and B is 32 percent with the probability of event A being 60 percent and the probability of event B being 50 percent. Based on this information, the conditional probability of event A given event B has occurred is closest to:
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30.0%.
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53.3%.
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64.0%.
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None of These