CFA一模考80595

cfa一级考试模拟试题及答案CFA一级考试模拟试题及答案1. 以下哪项不是金融市场的基本功能？A. 资源配置B. 风险管理C. 价格发现D. 娱乐消遣答案：D2. 在CFA考试中，以下哪项不属于投资组合管理的三个主要步骤？A. 资产配置B. 证券选择C. 风险管理D. 市场预测答案：D3. 根据现代投资组合理论，以下哪项是影响投资组合预期收益的唯一因素？A. 无风险利率B. 市场风险溢价C. 投资组合的贝塔系数D. 投资组合的波动性答案：C4. 在评估固定收益证券时，以下哪项不是影响债券价格的主要因素？A. 利率水平B. 信用评级C. 债券的到期时间D. 股票市场的波动性答案：D5. 以下哪项不是有效市场假说（EMH）的三种形式之一？A. 弱式有效市场B. 半强式有效市场C. 强式有效市场D. 超级有效市场答案：D6. 在计算股票的自由现金流至企业（FCFF）时，以下哪项不应从营业利润中扣除？A. 折旧和摊销B. 营运资本的变动C. 资本支出D. 净债务的变动答案：C7. 下列关于财务报表分析的说法中，哪项是不正确的？A. 横向分析可以帮助识别趋势B. 纵向分析可以揭示财务比率的变化C. 比率分析可以用于评估公司的财务状况D. 现金流量表是评估公司盈利质量的唯一工具答案：D8. 在评估一个公司的财务健康状况时，以下哪项财务比率不是流动性比率？A. 流动比率B. 速动比率C. 利息保障倍数D. 现金比率答案：C9. 在国际投资中，以下哪项不是影响汇率变动的主要因素？A. 贸易平衡B. 利率差异C. 政治稳定性D. 黄金价格答案：D10. 在CFA考试中，以下哪项不是宏观经济分析的组成部分？A. 经济增长B. 通货膨胀C. 货币政策D. 公司治理答案：D请注意，以上提供的模拟试题及答案仅供参考，实际CFA一级考试的题目和内容可能会有所不同。

考生应以官方提供的教材和学习资料为准备考试的主要依据。

cfa一级考试真题及答案详解CFA一级考试真题及答案详解1. 问题：在评估一个公司的财务状况时，以下哪项指标最能反映其偿债能力？A) 流动比率B) 速动比率C) 资产负债率D) 股东权益比率答案：C) 资产负债率解析：资产负债率是指公司总负债与总资产的比率，它反映了公司资产中有多少比例是通过借债获得的。

这个比率越高，说明公司的财务杠杆越大，偿债能力越弱。

因此，资产负债率是反映公司偿债能力的重要指标。

2. 问题：在进行股票投资分析时，以下哪项因素是影响股票价格的宏观经济因素？A) 公司盈利能力B) 利率水平C) 行业竞争状况D) 公司管理层能力答案：B) 利率水平解析：宏观经济因素包括利率水平、通货膨胀率、经济增长率等，这些因素会影响整个经济环境，进而影响股票市场。

利率水平是宏观经济因素之一，它会影响公司的融资成本和投资者的预期回报，从而对股票价格产生影响。

3. 问题：在固定收益投资中，以下哪项因素会导致债券价格上升？A) 市场利率上升B) 市场利率下降C) 债券信用评级下降D) 债券到期时间延长答案：B) 市场利率下降解析：在固定收益投资中，债券价格与市场利率呈反向关系。

当市场利率下降时，新发行的债券的票息率会低于市场上已有的债券，因此已有债券的相对吸引力增加，导致其价格上升。

4. 问题：在投资组合管理中，以下哪项策略是用于降低非系统性风险的？A) 资产配置B) 多元化投资C) 市场时机选择D) 杠杆投资答案：B) 多元化投资解析：非系统性风险是指特定于某个公司或行业的投资风险，这种风险可以通过多元化投资来降低。

通过投资于多个不同公司或行业的资产，可以减少单一资产或行业波动对整个投资组合的影响。

5. 问题：在金融衍生品中，以下哪项产品允许投资者在未来以特定价格买入或卖出资产？A) 期货合约B) 远期合约C) 期权合约D) 掉期合约答案：C) 期权合约解析：期权合约是一种金融衍生品，它赋予持有者在未来某个时间以特定价格买入或卖出资产的权利，但不是义务。

CFA一级模考题1 . The CFO of Axis Manufacturing is evaluating the introduction of a new product. The costs ofa recently completed marketing study for the new product and the possible increase in thesales of a related product made by Axis are best described (respectively) as:A) opportunity cost; externality.B) sunk cost; externality.C) externality; cannibalization.B was correct!The study is a sunk cost, and the possible increase in sales of a related product is an example of a positive externality.2. Steven’s Bakery produces snack cakes and bread. Listed below are the operating costs for theCompared to the snack cakes division, the operating breakeven quantity for the bread division is:A) less.B) greater.C) the same.C was correct!The operating breakeven quantity for the snack cakes divisi on is $25,000/($2.00 − $1.00) = 25,000.The opera ting breakeven quantity for the bread division is $30,000/($2.50 − $1.30) = 25,000.3. The debt of Savanna Equipment, Inc. has an average maturity of ten years and a BBB rating. Amarket yield to maturity is not available because the debt is not publicly traded, but the market yield on debt with similar characteristics is 8.33%. Savanna is planning to issue new ten-year notes that would be subordinate to the firm’s existing debt. The company’s marginal tax rate is 40%. The most appropriate estimate of the after-tax cost of this new debt is:A) 5.0%.B) Between 3.3% and 5.0%.C) More than 5.0%.C was correct!The after-tax cost of debt similar to Savanna’s existing debt is k d(1 - t) = 8.33%(1 - 0.4) =5.0%. Because the anticipated new debt will be subordinated i n the company’s debt structure,investors will demand a higher yield than the existing debt carries. Therefore, the appropriate after-tax cost of the new debt is more than 5.0%.4. Mason Webb makes the following statements to his boss, Laine DeWalt about the principlesof capital budgeting.Statement 1: Opportunity costs are not true cash outflows and should not be considered in a capital budgeting analysisStatement 2: Cash flows should be analyzed on an after-tax basis.Should DeWalt agree or disagree with Webb’s statements?Statement 1 Statement 2A) Disagree AgreeB) Agree AgreeC) Disagree DisagreeA was correct!DeWalt should disagree with Webb’s first statement. Cash flows are based on opportunity costs. Any cash flows that the firm gives up because a project is undertaken should be charged to the project. DeWalt should agree with Webb’s second stat ement. The impact of taxes must be considered when analyzing capital budgeting projects.5. Which of the following statements regarding the impact of fi nancial leverage on a company’snet income and return on equity (ROE) is most accurate?A) If a firm has a positive operating profit margin, using financial leverage will alwaysincrease ROE.B) Increasing financial leverage increases both risk and potential return of existingbondholders.C) Using financial leverage increases the volatility of ROE for a level of volatility inoperating income.C was correct!If a firm is financed with 100% equity, there is a direct relationship between changes in the firm’s ROE and changes in operating income. Adding financial leverage (debt) to the firm’s capital structure will cause ROE to become much more volatile and ROE will change more rapidly for a given change in operating income. The increased volatility in ROE reflects an increase in both risk and potential return for equity holders. Note that financial leverage results in increased default risk, but since existing bond holders are compensated by coupon interest and return of principal, their potential return is unchanged. Although financial leverage will generally increase ROE if a firm has a positive operating margin (EBIT/Sales), if the operating margin were small, the added interest expense could turn the firm’s net profit margin neg ative, which would in turn make ROE negative.。

CFA一级模考题1 . Janine Walker is an individual investment advisor with 200 individual clients. When she first obtains a client, Walker solicits personal data that helps her formulate an investment recommendation, including tax status, income, expenditure needs, and risk tolerance. The Standards:A)require Walker to update the data regularly.B)require updating a client's data only when a material change occurs to the personal data.C)only require to update a client's data when a material change is being made to the clients' portfolio.The correct answer was AAccording to Standard III(C), Suitability, Members and Candidates must reassess client information and update regularly.2 . A CFA Institute member conscientiously maintains records of changes in security regulations. The member notices that his colleagues do not, and does NOT say anything. Is this a violation of Standard I(A)?A)Yes, because the member is bound by the Code of Ethics.B)Yes, and the member should disassociate from these colleagues.C)No, as long as the colleagues do not violate the new rules.The correct answer was AThe last bullet point of the Code says that a member shall “Maintain and improve their professional competence and strive to maintain and improve the competence of other investment professionals.” Ignoring the neglect of rule changes of others would clearly be incongruent with this component. As long as the colleagues do not violate the laws, the member does not have to disassociate himself from the colleagues.3 . A money management firm has the following policy concerning new recommendations: When a new recommendation is made, each portfolio manager estimates the likely transaction size for each of their clients. Clients are notified of the new recommendation in the order of their estimated transaction size—largest first. All clients have signed a form where they acknowledge and consent to this allocation procedure. With respect to Standard III(B), Fair Dealing, this is:A)a violation of the standard.B)not a violation because the clients have signed the consent form.C)not a violation because the clients are aware of the policy.The correct answer was ASuch a policy is a violation of the Standard and client acknowledgement and/or consent does not change that fact.4 . Joni Black, CFA, works for a portfolio management firm. Black is a partner of the firm and is primarily responsible for managing several large pension plans. Black has just finished a research report in which she recommends Zeta Corporation as a “Strong Buy.” Her rati ng is based on solid management in a growing and expanding industry. She just handed the report to the marketing department of the firm for immediate dissemination. Upon returning to her desk she notices a news flash by CNN reporting that management for Zeta Corporation is retiring. Black wishes she did not recommend Zeta Corporation as a “Strong Buy,” but believes the corporation is still a good investment regardless of the management. What course of action for Black is best? Black:A)should revise the recommendation based on this new information.B)may send out the report as written as long as a follow up is disseminated within a reasonable amount of time reflecting the changes in management.C)should report the new information to her immediate supervisor so that they can determine whether or not the marketing department should send out the report as written.The correct answer was AThis question is related to Standard V(B) which states that CFA Institute members should use reasonable judgment regarding the inclusion or exclusion of relevant factors in research reports. The change in management was a relevant factor and must be disclosed before dissemination.5 . All of the following statements in promotion of your services are in violation of CFA Institute Standards of Practice handbook EXCEPT:A)I guarantee under my management that you will receive returns in excess of the market index average.B)I passed Level II of the CFA Program in 2003.C)based upon my research, you will achieve a 20% compound annual rate of return on small cap stocks over the next 5 years.The correct answer was: BCandidates may refer to the CFA level(s) passed and the associated dates as long as a partial designation is not implied. They may not guarantee or promise a given level of return.。

CFA一级模考题1 .Yangtze Delta High Technology produces multimedia-enabled wireless phones. The factory incurs rent, depreciation, salary, and other fixed costs totaling RMB 10 million per year. Also, the company incurs annual interest of RMB 3 million on debt. Each phone sold by Yangtze Delta sells for RMB 200. The variable cost per phone is RMB 150. Yangtze Delta’s operating breakeven quantity of sales is closest to:A) 200,000.B) 260,000.C) 65,000.The correct answer was: AThe operating breakeven point is the quantity of product sold at which operating income is zero (revenue equals operating cost).F = Fixed operating cost = RMB 10,000,000P = Price per unit = RMB 200V = V ariable cost per unit = RMB 150Operating breakeven quantity = F / (P − V) = 10,000,000 / (200 − 150) = 200,000.2 .Pfluger Company’s accounts payable department receives an invoice from a vendor with terms of 2/10 net 30. If Pfluger pays the invoice on its due date, the cost of trade credit is closest to:A) 27.9%.B) 43.5%.C) 44.6%.The correct answer was C 44.6%."2/10 net 30" is a discount of 2% of the invoice amount for payment within 10 days, with full payment due in 30 days. Cost of trade credit on day 30 =3 .The after-tax cost of preferred stock is always:A) equal to the before-tax cost of preferred stock.B) less than the before-tax cost of preferred stock.C) higher than the cost of common shares.The correct answer was: AThe after-tax cost of preferred stock is equal to the before-tax cost of preferred stock, because preferred stock dividends are not tax deductible. The cost of preferred shares is usually higher than the cost of debt, but less than the cost of common shares.4 . An example of a secondary source of liquidity is:A) negotiating debt contracts.B) cash flow management.C) trade credit and bank lines of credit.The correct answer was: ASecondary sources of liquidity include negotiating debt contracts, liquidating assets, and filing for bankruptcy protection and reorganization. Primary sources of liquidity include ready cash balances, short-term funds (e.g., trade credit and bank lines of credit), and cash flow management.5 .Which of the following statements about the internal rate of return (IRR) and net present value (NPV) is least accurate?A) For mutually exclusive projects, if the NPV rankings and the IRR rankings give conflicting signals, you should select the project with the higher IRR.B) The discount rate that causes the project's NPV to be equal to zero is the project's IRR.C) The IRR is the discount rate that equates the present value of the cash inflows with the present value of the outflows.The correct answer was: AThe NPV method is always preferred over the IRR, because the NPV method assumes cash flows are reinvested at the cost of capital. Conversely, the IRR assumes cash flows can be reinvested at the IRR. The IRR is not an actual market rate.。

CFA一级模考题1 . When verifying a firm’s compliance with Global Performance Investment Standards (GIPS), the verifier must:A)disclose whether the verification was performed by the firm’s internal auditors or a third party.B)clearly identify the composites for which verification has been performed.C)attest that the firm’s processes and procedures are established to present performance in accordance with GIPS requirements.The correct answer was CThe verifier must attest that the firm has complied with all GIPS requirements for composite construction on a firm-wide basis and that the firm’s processes and procedures are established to present performance in accordance with the calculation methodology, data, and format requirements of GIPS. Verification is not a GIPS requirement. If performed, verification applies to the firm as a whole, not to individual composites, and must be performed by an independent third party, not the firm itself.2 . Patricia Cuff is the chief financial officer and compliance officer at Super Selection Investment Advisors, an organization that has incorporated the CFA Institute Code of Standards into the firm's compliance manual. Karen Trader is a portfolio manager for Super Selection. Trader is friendly with Josey James, president of AMD, a rapidly growing biotech company. Trader has served on AMD's board of directors for the last three years. James has asked Trader to commit to a large purchase of AMD stock for Trader’s clients’ portfolios. Trader had previously determined that AMD was a questionable investment but agreed to reconsider. Her reevaluation deemed the stock to be overpriced, but Trader nevertheless decides to purchase for her portfolios. Which standard was least likely violated?A)V(A) Diligence and Reasonable Basis.B)III(A) Loyalty, Prudence, and Care.C)III(B) Fair Dealing.The correct answer was CStandard III(B) Fair Dealing is not directly applicable to this situation; that standard prohibits members and candidates from discriminating against any clients when disseminating recommendations or taking investment action. Trader has clearly violated standard III(A) Loyalty, Prudence, and Care, which requires that members and candidates act for the benefit of their clients and place their clients’ interests before their own interests. Trader has also violated standard V(A) Diligence and Reasonable Basis, which requires members and candidates to have a reasonable and adequate basis for any investment recommendation or action.3 . Standard VI(B), Priority of Transactions, applies to transactions an analyst takes on behalf of:A)his clients.B)both of these.C)his employer.The correct answer was: BStandard VI(B) addresses the treatment of both these accounts. The accounts of clients and employers have priority over personal accounts.4 . Standard VI(C), Referral Fees, is applicable to:A)only cash consideration received for the recommendation of products or services.B)only consideration paid in soft dollars for the recommendation of products or services.C)all consideration received or paid for the recommendation of products or services.The correct answer was CAccording to Standard VI(C), Referral Fees, consideration includes all fees that are paid in cash, soft dollars, and in kind. Referral fees must be disclosed to the client or employer whether the consideration is received by or paid to others for the recommendation.5 . Greg Stiles, CFA, may withhold from CFA Institute information about a client acquired in the regular performance of his duties:A)for neither of the reasons listed.B)only if Stiles is a relative of the client.C)only if Stiles has a special confidentiality agreement with the client.The correct answer was AAccording to Standard III(E), Preservation of Confidentiality, Stiles may not withhold information under any of the listed reasons. The reason is that CFA Institute will keep the information confidential.。

CFA一级模考题1 . The main functions of the financial system least likely include:A) allocating financial resources to their most productive uses.B) bringing together savers and borrowers.C) preventing investors from generating abnormal profits by trading on information.The correct answer was COne of the purposes of the financial system is to allow investors to trade on (public) information. Other purposes of the financial system include allocating financial capital to its most productive uses, and bringing together those who wish to save with those who wish to borrow.2 . The Top Banking Index contains stocks in the finance industry that represent more than 90% of the total market capitalization for the finance industry. The index is best described as a:A) sector index.B) broad market index.C) style index.The correct answer was: AA sector index measures the returns for an industry sector such as financials. Style indexes measure the returns to strategies that are differentiated by market capitalization and by value or growth. A broad market index typically consists of constituent securities that represent 90% or more of the total market capitalization for a given market.3 .Which of the following statements least likely describes the role of a portfolio manager in perfectly efficient markets? Portfolio managers should:A) quantify client's risk tolerance, communicate portfolio policies and strategies, and maintain a strict buy and hold policy avoiding any changes in the portfolio to minimize transaction costs.B) construct a portfolio that includes financial and real assets.C) construct diversified portfolios that include international securities to eliminate unsystematic risk.The correct answer was: AA portfolio manager should quantify each client's risk tolerance and communicate portfolio policiesand strategies. However, portfolio managers should monitor client's needs and changing circumstances and make appropriate changes to the portfolio. Adhering to a strict buy and hold policy would not be in the client's best interest. Portfolios need to be rebalanced and changed to meet client’s changing needs.4 . Which of the following forms of the EMH assumes that no group of investors has monopolistic access to relevant information?A) Both weak and semistrong form.B) Weak-form.C) Strong-form.The correct answer was CThe strong-form EMH assumes that stock prices fully reflect all information from public and private sources. In addition, no group of investors has monopolistic access to information relevant to the formation of prices.5 . Which of the following is least likely a characteristic of a well-functioning market?A) Reliable information is available on price and volume.B) Prices adjust quickly when new information becomes available.C) Prices change significantly from one transaction to the next.The correct answer was CIn a well-functioning market, prices should not typically change much from one transaction to the next because many buyers and sellers are willing to trade at prices near the current price. Characteristics of a well-functioning market include availability of reliable information on prices and transaction volume; liquidity (marketability and price continuity); prices that react quickly to new information; and low transactions costs.。

CFA一级模考题1 . Asset-backed securities (ABS) may have a higher credit rating than theseller's corporate bonds because:A. the special purpose vehicle is a separate entity.B. the seller's A~3S are senior to its corporate bonds.C. ABS are investment grade while corporate bonds may be speculative grade.2. An investor gathered the following information about two 7% annual-pay, option-free bonds:●Bond R has 4 years to maturity and is priced to yield 6%●Bond S has 7 years to maturity and is priced to yield 6%●Both bonds have a par value of $1,000.Given a 50 basis point parallel upward shift in interest rates, what is the value of the two-bond portfolio?A) $2,030.B) $2,086.C) $2,044.C was correct!Given the shift in interest rates, Bond R has a new value of $1,017 (N = 4; PMT = 70; FV = 1,000; I/Y = 6.50%; CPT → PV = 1,017). Bond S’s new va lue is $1,027 (N = 7; PMT = 70;FV = 1,000; I/Y = 6.50%; CPT → PV = 1,027). After the incr ease in interest rates, the new value of the two-bond portfolio is $2,044 (1,017 + 1,027).3. Assume a bond's quoted price is 105.22 and the accrued interest is $3.54. The bond has a parvalue of $100. What is the bond's clean price?A) $103.54.B) $108.76.C) $105.22.C was correct!The clean price is the bond price without the accrued interest so it is equal to the quoted price.4. The zero volatility spread (Z-spread) is the spread that:A) is added to the yield to maturity of a similar maturity government bond to equal the yieldto maturity of the risky bond.B) is added to each spot rate on the government yield curve that will cause the present valueof the bond's cash flows to equal its market price.C) results when the cost of the call option in percent is subtracted from the option adjustedspread.B was correct!The zero volatility spread (Z-spread) is the interest rate that is added to each zero-coupon bond spot rate that will cause the present value of the risky bond's cash flows to equal its market value. The nominal spread is the spread that is added to the YTM of a similar maturitygovernment bond that will then equal the YTM of the risky bond. The zero volatility spread(Z-spread) is the spread that results when the cost of the call option in percent is added to the option adjusted spread.5. Assume that a callable bond's call period starts two years from now with a call price of$102.50. Also assume that the bond pays an annual coupon of 6% and the term structure is flat at 5.5%. Which of the following is the price of the bond assuming that it is called on the first call date?A) $100.00.B) $102.50.C) $103.17.C was correct!The bond price is computed as follows:Bond price = 6/1.055 + (102.50 + 6)/1.0552 = $103.17。

CFA一级模考题1 . Adjusting for convexity improves an estimated price change for a bond compared to usingduration alone because:A) it measures the volatility of non-callable bonds.B) the slope of the price/yield curve is not linear.C) the slope of the callable bond price/yield curve is backward bending at high interest rates.B was correct!Modified duration is a good approximation of price changes for an option-free bond only for relatively small changes in interest rates. As rate changes grow larger, the curvature of the bond price/yield relationship becomes more prevalent, meaning that a linear estimate of price changes will contain errors. The modified duration estimate is a linear estimate, as it assumes that the change is the same for each basis point change in required yield. The error in the estimate is due to the curvature of the actual price path. This is the degree of convexity. If we can generate a measure of this convexity, we can use this to improve our estimate of bond price changes.2 . Senior subordinated bonds have a priority of claims over:A) first lien debt.B) subordinated bonds.C) secured bonds.B was correct!First lien loans and secure bonds are senior to any unsecured debt. Senior subordinated debt is senior to subordinated debt.3 . If a U.S. investor is forecasting that the yield spread between U.S. Treasury bonds and U.S.corporate bonds is going to widen, then which of the following is most likely to be CORRECT?A) The economy is going to expand.B) The economy is going to contract.C) The U.S. dollar will weaken.B was correct!If economic conditions are expected to get worse, then the probability that corporations maydefault increases and causes credit spreads to widen.4 . Which of the following is least likely to increase a bond’s yie ld spread to the benchmark yieldcurve?A) Decrease in liquidity.B) Increase in expected inflation.C) Credit rating downgrade.B was correct!Interest rates on the benchmark yield curve are composed of expected inflation and the realrisk-free rate. Spreads to the benchmark yield curve include premiums for credit risk and lack of liquidity.5 . How does the price-yield relationship for a callable bond compare to the same relationship foran option-free bond? The price-yield relationship is best described as exhibiting:A) negative convexity for the callable bond and positive convexity for an option-free bond.B) negative convexity at low yields for the callable bond and positive convexity for theoption-free bond.C) the same convexity for both bond types.B was correct!Since the issuer of a callable bond has an incentive to call the bond when interest rates are very low in order to get cheaper financing, this puts an upper limit on the bond price for low interest rates and thus introduces negative convexity between yields and prices.。

（完整版）CFA一级模考试题及答案ANSWERS FOR MOCK EXAM 1 (MORNING SESSION)1. D. Although Terence has passed Level III, he has not yet received his charter andcannot use the CFA designation. The description provided in the cover letterproperly describes his situation.2. C. Amy must take both actions-notifying her immediate supervisor and deliveringa copy of the Code and Standards.3. D.4. C. Members may undertake an independent practice that could result incompensation or other benefit in competition with their employer provided theyobtain written consent from both their employer and the party for whom theyundertake independent practice.5. C. To maintain his objectivity, Keith should pay his own hotel bill. Because theitinerary required charter flights due to a lack of commercial transportation, A& K Limited can appropriately provide them.6. C. Under ERISA, fiduciaries must act solely in the interest of, and for theexclusive purpose of benefiting, the plan participants and beneficiaries.7. B. Daniel must give priority to transactions for clients and employers overtransactions for his children.8. A. To avoid violating the standards, members cannot trade until the member'sclients and employers have had an adequate opportunity to act on therecommendation.9. C. The requirements of Standard IV (B.5) are not intended to prevent Lambertfrom cooperating with an investigation by AIMR's Professional ConductProgram.10. B. Vivian should disclose to her clients and prospects her husband's holdings inDouble Limited because this matter could be expected to impair her ability tomake unbiased and objective recommendations.11. B.12. B. Accruals accounting is required.13. C. S tandard I(B) Fundamental Responsibilities. Prohibition against participating orassisting in illegal and ethical violations. If Roberts suspects someone isplanning or engaging in illegal activities, he should: (1) determine the legalityof the activities, (2) disassociate himself from the illegal or unethical activity,and (3) urge his firm to attempt to persuade the perpetrator to stop. The AIMRStandards of Professional Conduct do not require that Roberts report suchactivities to the authorities, but the law might.14. C. Standard III(C) Disclosure of Conflicts to Employer. Gloria should disclose toher employer all matters that could reasonably be expected to interfere with herability to make unbiased and objective recommendations. Her service as atrustee of the Well Limited Foundation for Heart Research is most likely to beconsidered a conflict of interest with her responsibility to her employer.15. C. Standard III (E) Responsibilities of Supervisors. Paul may delegate supervisoryduties, but such delegation does not relieve him of his supervisoryresponsibility.16. A. Standard IV (B.3) Fair Dealing. Johnson violated the standard on fair dealingbecause he did not deal fairly and objectively with all clients and prospectswhen disseminating investment recommendations. Instead, he showedfavoritism to his best clients. In disseminating investment recommendations,Johnson should consider making the information available to clients based ontheir interest and suitability. A change of recommendation from buy to sell orsell to buy is generally material.17. D. Standard IV(B.5) Preservation of Confidentiality. ChoiceB is false because thisstandard prohibits members from executing settlement agreements that preventmembers from providing information in an investigation by AIMR'sProfessional Conduct Program (PCP). Choice C is false because a personcannot withhold information during PCP investigations. Choice A is falsebecause if a member receives information due to his or her special relationshipwith the client indicating illegal behavior on the past of the client, the membermay not have an obligation to inform the appropriate authorities.18. A. Standard IV(B.6) Prohibition against Misrepresentation. Members are notpermitted to make any assurances or guarantees about any investment, except tocommunicate accurate information. The statement that investment grade bondshave less default risk than junk bonds is an accurate statement.19. C. Use BGN node: n = 10; i = 12 PMT = 1,000, compute FV = 19.654.5820. B. The present value of a perpetuity is PV = A/r = 500/0.1 = $5,000.21. B. i = 6/12 = 0.5; n = 10x12 = 120; PV = 40,000 Compute PMT22. A.23. A. A binomial random variable has an expected value or mean equal to np andvariance equal to np(1-p).Mean = 12(0.5) = 6; variance (12)(0.5)(1-0.5) = 324. D.25. B. Rbt-1 = In St+1 /St = (1+RL1-1) = In (40/25) = 0.47. Thus, 47% is thecontinuously computed return for the one-year holding period.26. B. Choice A describes cross-sectional data.Choice B describes time-series data.27. D. The dependent variable, Y, is equal to the intercept, b0, plus a slope coefficient,P(positive) - P(analyst and positive)P (A or positive) = 130/200 + 140/200 - (100/130) = 0.58 or 58%36. B. Savings increases to hold interest rates constant. This means aggregate demandchanges little.37. C. The empirical evidence on the relationship between budget deficits and interestrates is mixed.Few studies show a significant positive short-term link between budget deficitsand real interest rates.38. B. Expansion = 1 / reserve requirement = 1/0.25 = 4(4)(150) = 60039. C. People realize this leads to inflation in the long run, so they reduce their moneyholdings. Output rises because the increase is unexpected.40. C. In purely competitive markets, there are a large number of dependent firms.41. D.42. D.43. C.44. C.45. D. Choice A: Accrual accounting does not require the receipt of cash for assuranceof payment to exist.Choice C and D: These relate only to the condition of completion of theearnings process.46. D.47. A Demand for currency decreases when real interest ratesdecrease because ofdecreased capital flows.48. C Foreign exchange quotations can be expressed on a direct basis - the homecurrency price of another currency—or an indirect basis-- the foreign currencyprice of the home currency.49. C F/S= (1 + r D)/(l + r F) where rates are listed as DC/FCF = (1.3/1.25)(0.4) = 0.41650. C. Direct method:Net income 1000Depreciation 70Goodwill 30Change in accounts receivable 25Change in inventory (35)Change in accounts payable 30Change in wages payable 15Operating cash flows 113551. B. Purchase equipment (200)Sell truck 25Investing cash flows (175)52. D. Sale of common stock 100Issuance of bonds 20Financing cash flows 12053. D. A common size balance sheet expresses all balance sheet accounts as apercentage of total assets.54. C. Original shares of common stock = 1,000,000(12) = 12,000,000Stock dividend = 200,000(12) = 2,400,000New shares of common stock = 200,000(3) = 600,000Total shares of common stock = 15,000,000/12= 1,250,000 Stock dividends are assumed to have been outstanding since the beginning ofthe year.55. D. Inventory turnover, defined as COGS/Average inventory, if often meaninglessfor LIFO companies due to the mismatching of costs. The numerator representscurrent costs, whereas the denominator reports outdated historical costs. Thus,the turnover ratio under LIFO will, when prices decrease, trend lower becauseof small COGS and larger inventory. Net profit margin, defined as EA T/Sales,is higher during periods of decreasing profits for LIFO companies. LIFO leadsto a smaller COGS, which reduces EAT, without affecting sales.56. A. In this situation, LIFO results in lower cost of goods sold because it uses themore recent and lower costs than LIFO. LIFO results in lower cash flowsbecause the cash on income taxes is a percentage(the marginal tax rate) of thedifference in inventory values. Thus, with LIFO:Sales-COGS (smaller)EBT (larger)-Taxes (larger) Because taxes paid out are a cash outflow.EAT (larger) If taxes are larger, then cash flow ill be smaller.57. D. COGSFIFO = COGSLIFO - (Ending LIFO Reserve - Beginning LIFO Reserve)COGSFIFO = $250,000 - ($8,000-$5,000) = $247,00058. D. Compared to expensing, capitalizing results in higher profitability in earlyyears and lower profitability in later years.59. C.60. D. The present value of the minimum lease payments equals or exceeds 90 percentof the value of the fair value of the leased property.61. B. Capital lease affects on the income statement:Step1: Calculate the depreciation charge: ($3,500,000-$450,000)/10 = $305,000Step2: Calculate the interest expense: $3,500,000(0.15) = $525,000Total expense: $305,000+$525,000 = $830,00062. A.63. C.64. A.65. B.66. D.67. B. Dealer-markets are price-driven markets.68. D.69. C.70. C. P/E = Dividend payout ratio/(k-g)Dividend payout ratio = 1 - retention ratio = 1-0.2 = 0.8P/E = 0.8(0.15-0.08) =5.671. B. k = D1/P0+g = $4/$25+0.09 = 0.2572. A. Step1: Calculate the ending index value = ($100)(5) = $500Step2: Calculate the expected return.E(R1) = [Dividends + (Ending value - Beginning value)]/(Beginning value)= [40+(500-490)]/$490 = 0.1 or 10%73. D. The critical factors determining the franchise P/E are the difference between theexpected return on the new opportunities (R) and the current cost of capital (k)and the size of these growth opportunities relative to the firm's current size.74. A.75. C.76. D The completed contract method less net income in the periods beforeconstruction is completed, but not at the end of the contract, than using thepercentage-of-completion method. This is because the completed contractmethod recognizes revenue and expense only when the contract has beencompleted.77. A. N et income 1,000Adjustment for non-cash andnon-operating itemsDepreciation 100Deferred taxes (increase) 40Profit from sale ofequipment (10)Adjustment for workingcapital items:Accounts receivable (decrease) (120)Inventory (increase) (40)Accounts payable (increase) (20)Wages payable (decrease) (10)Cash flow from operations 94078. D79. A When inventory and accounts receivable increase, this is a use of cash (cashoutflow); when assets decrease, this is a source (cash inflow). When accountspayable increase, this is a source of cash (cash inflow); when liabilitiesdecrease, this is a use (cash outflow).80. B Cash conversion cycle = receivables days + inventory processing days -payables payment period.Receivables days = 365/receivabies turnover = 365/30 = 12.17 days.Inventory processing days = 365/inventory turnover = 365/15 = 24.33 days.Payables payment period = 365/payabIes turnover = 365/20 = 18.25days.Cash collection cycle = 12.17 + 24.33 – 18.25 = 18.25 days.81. B Choice A: Buying fixed assets on credit does not affect current assets butincreases current liabilities. Therefore, the current ratio falls.Choice B: Buying inventory on account increases both inventory and accountspayable. Because the current ratio started off below I, the ratio will increase.Choice C: Selling marketable securities for cash does not affect the amount ofcurrent assets and leaves the current ratio unaffected,Choice D: Paying off accounts payable from cash lowers current assets andcurrent liabilities by the same amount. Because the current ratio started offbelow 1, the ratio will fall.82. D ROE = Profit margin x Total asset turnover x financial leverageROE = (0.3)(2.1)(0.5)= 0.315 or 31.5%83. A ROE = [(S/A)(EBIT/S) - (I/A)](A/EQ)(I - t)ROE = [(2.5)(0.2) - (0.08)](1.2)(0.6) = 0.30 or 30%84. A85. B EPS = ($180,000 - $4,000) / 50,000 = $3.52 per share86. B87. D88. C These relationships are reversed in the latter years of the asset's life if the firm'scapital expenditures decline.89. D90. C.91. C.92. D.93. D. Absolute yield spread = Yield on Bond A - Yield on Bond B = 10%-7% = 3%94. B. Relative yield spread = (Yield on Bond A - Yield on Bond B)/(Yield on BondB)= (10%-7%)/7% = 0.43 = 43%95. B. Yield ratio = (Yield on Bond A)/(Yield on Bond B) = 6%/7% = 1.4396. B. Current yield = (Annual dollar coupon interest)/(Price of the bond) = 8/130 =0.0625 or 6.25%97. A. When the stock's price (S) - the strike price (X) is positive, a call option isin-the-money. 25-X = 8 so X = 17.98. A.99. A. The writer of put loss = $60-premiun$5 = $55The writer of call gets a maximum gain of $8100. A.101. C.102. D.103. A.104. D.105. B.106. D.107. C.108. A. Securities that fall on the SML are properly valued.109. A.110. A. If a stock's beta were equal to 1, an investor would be expected to get the market rate of return from buying the stock. E(R) = 5%+1(10%-5%) = 10% 111. D112. D113. C114. B Perfect positive correlation (r = + 1) of the returns of two assets offers no risk reduction, whereas perfect negative correlation (r = -1) offers the greatest riskreduction.115. B Portfolio A does not lie on the efficient frontier because it has a lower return than Portfolio B but has greater risk. Portfolio D does not lie on the efficientfrontier because it has higher risk than Portfolio C but has the same return. 116. C.117. D Choice A: Unsystematic risk is diversifiable risk.Choice B: Systematic risk is undiversifiable risk.Choice C: Total risk= Systematic risk+ Unsystematic risk.118. C119. D CAPM specifies the factor (market risk) but APT does not.120. A。