CFA备考之CFA一级习题精选及解析

CFA备考之CFA一级习题精选及解析

Case

1. Bryan Barrett, CFA, provides investment advice on gold and other hard assets to several large institutions. To broaden his business and meet increased interest in these assets from retail customers, Barrett advertises his services in publications that serve a general audience. As the client base for the institutions that Barrett serves is large, he is comfortable stating in the ads that thousands of his clients have benefited from his advice. Does Barrett’s advertisement violate any CFA Institute Standards of Professional Conduct? A. No.

B. Yes, related to Misrepresentation. C. Yes, related to Communication with Clients.

2. An analyst finds that the probability of stock A outperform the market is 60%. What is the odds for of the stock A

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underperform the market? A. 2/3 B. 1/3 C. 3/2

3. A profit maximum is least likely to occur when: A. average total cost is minimized. B. marginal revenue equals marginal cost.

C. the difference between total revenue and total cost is maximized.

4. Under the IASB Conceptual Framework, one of the qualitative characteristics of useful financial information is that different knowledgeable users would agree that the information is a faithful representation of the economic events that it is intended to represent. This characteristic is best described as: A. Verifiability. B. Comparability. C. Understandability.

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5. An analyst gathered the following Information about the capital structure and before-tax component costs for a company. The company’s marginal tax rate is 40%.

The company’s weighted average cost of capital (WACC) is closest to: A. 8.55%. B. 9.95%. C. 10.00%.

6. Which of the following statements is most accurate with respect to rebalancing and reconstitution of security market indices?

A. Equal weighted indices require frequent rebalancing. B. Turnover within an index results from a reconstitution but not from rebalancing.

C. A price-weighted index requires rebalancing more than a market capitalization weighted index.

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7. A mechanism by which an issuer may be able to offer additional bonds to the general public without preparing a new and separate offering circular best describes: A. The grey market B. A shelf registration C. A private placement

8. Consider a put option on Deter, Inc., with an exercise price of $45. The current stock price of Deter is $52. What is the intrinsic value of the put option, and is the put option at-the-money or out-of-the-money?

9. Which of the following investments most likely provides an investor with indirect, equity exposure to real estate? A. Real estate investment trusts. B. Real estate limited partnerships. C. Commercial mortgage backed securities.

10. An analyst gathered the following information about a portfolio comprised of two assets:

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If the correlation of returns for the two assets equals 0.75, then the expected return and expected standard deviation of the portfolio are closest to:

1. Solution: B.

As Barrett’s client base is made up of a small number of large institutions, stating in the advertisement that his customer base is a larger number is a misrepresentation and a violation of Standard I (C). In addition, since the advertisement focuses only on the benefits and does not mention the potential risks of these investments, it is also potentially misleading to clients.

2. Solution: A.

The probability of underperform = 1–60% = 40% The odds for of underperform = 40%/60% = 2/3

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3. Solution: A.

The quantity at which average total cost is minimized does not necessarily correspond to a profit maximum.

4. Solution: A.

Under the International Accounting Standards Board’s Conceptual Framework, verifiability is the qualitative characteristic that means that different knowledgeable and independent users would agree that the information presented faithfully represents the economic events that it is intended to represent.

5. Solution: B.

As the target capital weights are not given, you can use market value weights to compute the WACC. The market value weights for debt, preferred stock and equity are 0.2667, 0.0667, and 0.6667 respectively.

WACC=Wd * rd (1 -t) + Wp * rp + Wce * rce

= 0.2667 * 8% (1 - 0.4) + 0.0667 * 10% + 0.6667 * 12% = 9.95%

6. Solution: A.

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After an equal weighted index is constructed and the prices of constituent securities change, the index is no longer equally weighted. Therefore, maintaining equal weights requires frequent adjustments (rebalancing) to the index.

7. Solution: B.

A shelf registration allows certain authorized issuers to offer additional bonds to the general public without having to prepare a new and separate offering circular. The issuer can offer multiple bond issuances under the same master prospectus, and only has to prepare a short document when additional bonds are issued. A is incorrect because the grey market is a forward market for bonds about to be issued. C is incorrect because a private placement is a non-underwritten, unregistered offering of bonds that are not sold to the general public but directly to an investor or a small group of investors.

8. Solution: B.

The option has an intrinsic value of $0, because the stock price is above the exercise price. Put value is MAX (0, X-S). Equivalently, the option is out-of-the-money.

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9. Solution: A.

Real estate investment trusts (REITS) provide investors with indirect, equity real estate exposure. Real estate investment partnerships are a form of direct real estate equity investment. Commercial mortgage backed securities (CMBS) provides investors with indirect, debt investment opportunities in real estate.

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