Free CFA CFA-Level-I Test Practice Test Questions Exam Dumps [Q530-Q548]

NEW QUESTION 530
Beaumont Bearings is analyzing two mutually exclusive projects with the following cash flows. Its cost of capital is 9%.
The IRRs for the two projects are:

NEW QUESTION 531
Which commercial classification system classifies companies based on a company’s primary business activity?

NEW QUESTION 532
A recession is likely to occur if there is a:

NEW QUESTION 533
A retail client of yours is interested in knowing how low an annual return a major stock index might have, as a once in a twenty year event. The index in question has had an annual return of 11% with a standard deviation of 22%. You believe these returns have been normally distributed. What is the low return that could be expected once in twenty years?

NEW QUESTION 534
Which of the following factors are important barriers to entry into a monopolistic or oligopolistic market?
I). patents
II). economies of scale
III). control of an essential resource
IV). governmental licensing

NEW QUESTION 535
A 3-year, annual-pay, 5% coupon bond with par value $1,000 currently sells for $975. A 3-year, annual-pay, deferred coupon bond with one-year deferral period and coupon rate of 5% is also available from the same bond issuer.

NEW QUESTION 536
A job paid $8,700 in 1970, when the CPI was 29. In 2011, the CPI was 164. How much would you have to earn in 2011 to be making the same real wage?

NEW QUESTION 537
Liquidity risk corresponds to the risk

NEW QUESTION 538
If credit terms of “1/10, net 35” are offered, the approximate cost (using 365 days) of not taking the discount and paying at the end of the credit period would be __________.

NEW QUESTION 539
Consider a normal distribution with MU = 67 and SIGMA = 144. If each score is raised by 7 points, what percentage of the new scores is less than 74?

NEW QUESTION 540
A firm made donations of $50,000 this year. The donations were expensed for financial reporting purposes but not allowed so for tax purposes. The tax base and carrying amount of this item are:

NEW QUESTION 541
The short run supply curve for a firm is

NEW QUESTION 542
An automatic machine inserts mixed vegetables into a plastic bag. Past experience revealed that some packages were underweight and some were overweight, but most of them had satisfactory weight.
Weight: % of Total Underweight: 2.5 Satisfactory: 90.0 Overweight: 7.5
Three packages are selected from the food processing line.
What is the probability of selecting and finding that all three of them are satisfactory?

NEW QUESTION 543
Forest Glen Furniture Company has the following ratios: Days accounts payable outstanding, 55; days inventory held, 50; days receivable outstanding, 65. Which one of the following is the correct number of days that cash inflows and outflows are mismatched (i.e. the cash cycle)?

NEW QUESTION 544
If you can invest for 2 years at 5% today, or invest for 1.5 years at 4.6%, what would you have to earn on your reinvestment to be just as well off?

NEW QUESTION 545
Clifton Company leased a computer from Jan Corporation on January 1, 2000, for a 10-year period, the useful life of the asset. Equal rental payments of $5,000 are due on January 1 of each year. The first payment was made on January 1, 2000. The present value of the minimum lease payments over the lease term discounted at 10% was $33,795. The balance in Clifton’s liability account (including accrued interest) at December 31, 2000, should be:

NEW QUESTION 546
Which of the following statements concerning diversification is incorrect?

NEW QUESTION 547
Suppose a U.S. firm buys good from Thailand with a payment of Thai Baht 2,000,000 due in 90 days.
The current price of the baht is U.S. 0.02532. The U.S. firm wishes to hedge its currency risk by entering into a 90 day forward contract with a bank at a price of $0.02545. In 90 days the spot rate for Thai baht is
$ 0.02528.

NEW QUESTION 548
David Smith is a CFA member with supervisory responsibilities. However, due to his workload he has delegated a part of his supervisory responsibilities. What are Smith’s responsibilities in terms of Standard
IV (C) – Responsibilities of supervisors?