单选题Marko Tskitishvili, an economist, has been studying the drop in the price of the average household computer in the U.S. and wonders if computers should still be considered a luxury good or if it has now become a normal good. He conducts a survey of 500 people and finds the following:
1998
2005
Avg．Household Income
$41000
$53000
Avg．Computers Purchased per Household
0.42
0.57 Assume that 1998 is the base date. Based on the above data, Tskitishvili would conclude that a computer is a: A. luxury good with income elasticity of 1.01. B. normal good with income elasticity of 0.84. C. luxury good with income elasticity of 1.18.
单选题Over long periods of time, which of the three major asset allocation decisions account for 85 to 95 percent of returns? A. the asset classes to consider and which securities to choose. B. the asset classes to consider and the policy (normal) asset class weights. C. the policy (normal) asset class weights and the allowable range on those weights.
单选题A company changes from an incorrect method of accounting to an acceptable one. Which of the following statements about this change is most accurate? A. It is a prior period adjustment and can be accounted for by restating results for all prior periods that are presented in the current financial statements. B. It is an extraordinary item and is reported net of taxes below the operating income line. C. If the change is voluntary, it is a change in accounting principle and is reported below the line net of taxes.
单选题A country implements policies that are expected to increase taxes by 100 million, increase government spending by 50 million, and reduce investments and private sector savings by 25 million each
单选题Amato, an island nation, does not have any regulations precluding the use of non-public information. Darcy has a friend and fellow CFA charter holder there with whom he has shared nonpublic information regarding firms outside of her industry. The information concerns several firms" internal earnings and cash flow projections. The friend may:
单选题Helen Alba and Kobin Lubis have deferring views on the future performance of U-Cite. Consequently, Alba has taken a short position while Lubis has purchased the stock on margin. The relevant details are as follows:
Market price per share: $42
Number of shares purchased: 1000
Holding period: 1 year
Ending share price: $50
Initial margin requirement: 45%
Maintenance margin: 30%
Transaction and borrowing cost: $0
Alba and Lubis will receive margin calls at a stock price of:
Alba Lubis
①A. $37.66 $53.45
②B. $46.85 $53.45
③C. $46.85 $33.00
A. ①B. ②C. ③
单选题June Rutherford is preparing a research report on Andronicus Fund, an offshore hedge fund that specializes in identifying market pricing inefficiencies and profiting from the arbitrage opportunities they present. Rutherford includes these statements in her report: Statement 1: The rate of return that investors require from Andronicus should reflect the risk that the fund managers will not consistently capture positive abnormal returns from the anomalies they have identified. Statement 2: Arbitrage trading is unlikely to bring about fully efficient prices because Andronicus and other arbitrageurs will not trade if the gains to be captured are less than their transactions costs. Are Rutherford's statements correct? Statement 1 Statement 2 ①A. Correct Correct ②B. Correct Incorrect ③C. Incorrect Correct
单选题A trader buys (takes a long position in) a T-bill futures contract ( $1 million face value) at 98.14 and closes it out at a price of 98.27. On this contract the trader has :
单选题According to EMH knowledge, is the information set associated with the weak-form of the EMH best described as including all information associated with the: semistrong-form of the EMH strong-form of the EMH ①A. No No ②B. No Yes ③C. Yes No
单选题Mark Ritchie purchased, on margin, 200 shares of TMX Corp. stock at a price of $ 35 per share. The margin requirement was 50%. The stock price has increased to $42 per share. What is Ritchie's return on investment before commissions and interest if he decides to sell his TMX holdings now?
单选题A monopolist will maximize profits by: A. producing at the point where price is equal to MR. B. producing at the output level where marginal revenue equals average variable cost and charging a price along the demand curve that corresponds to the output rate. C. producing at the output level where marginal revenue equals marginal cost and charging a price on the demand curve that corresponds to the output rate.
单选题Which of the following choices best describes the effects on consumption, investment, and net exports that would result from an increase in the price level, other factors held constant?
Consumption Investment Net exports
①A. Decrease Decrease Decrease
②B. Decrease Increase Increase
③C. Increase Decrease Decrease
A. ① B. ②C. ③
单选题Keith Keeley, an associate at Friedman, Harris, and Levinsky LLC, was
requested by a Managing Director of the firm to help construct the consumer
price index (CPI). Keeley sought to determine which goods and services to
include in the index by observing what a typical U. S. household purchases. He
then took a large survey of individuals to determine what percentage of their
disposable income they spend on each of the items and used these percentages as
the weights for the major categories in the CPI. The steps that Keeley undertook
are all part of which stage in constructing the CPI index?
A. Select the CPI basket.
B. Calculate the CPI.
C. Conduct the monthly price survey.
单选题An analyst collects data relating to five commonly used measures of financial leverage and interest coverage for a randomly chosen sample of 300 firms
单选题The standard normal distribution is most completely described as a: A. symmetrical distribution with a mean equal to its median. B. normal distribution with a mean of zero and a standard deviation of one. C. distribution that exhibits zero skewness and no excess kurtosis.
单选题Three 125000 euro futures contracts are sold at a price of $1.0234. The next day the price settles at $1.0180. The mark to market for this account changes the previous day's margin by :
单选题Joshua Douglas, CFA, is interested in the relationship between the stock prices of two companies, Sonata Inc. and Prius Inc. After downloading a time series of stock prices for each company, Douglas concludes that Sonata Inc. has a variance equal to 25.0 percent and Prius has a variance equal to 20.0 percent. If the covariance between the two stocks is -0.10, the correlation coefficient is: A. negative, and indicates that a 1.0% increase in the price of Sonata would be accompanied by a 2.0% decrease in the price of Prius. B. negative, and indicates that a 10.0% increase in the price of Sonata would be accompanied by a 4.5% decrease in the price of Prius. C. positive, and indicates that a 1.0% increase in the price of Sonata would be accompanied by a 2.0% increase in the price of Prius.
单选题Are the following statements about assessing credit risk true or false?
Statement 1: From a lender" s perspective, higher margin volatility is for floating-rate debt but not for fixed-rate debt.
Statement 2: Product and geographic diversification should lower credit risk.
Statement 1 Statement 2
①A. False True
②B. False False
③C. True True
单选题When debit balances (i.e. margin debit) in brokerage accounts decrease:
单选题Is unanticipated inflation likely to result in a loss to（ ）