单选题An analyst does research about net present value and gathers the following information about two real estate projects, each with a cash outlay of $950000: Project Cash flow 1 Cash flow 2 Cash flow 3 1 0 $880000 $880000 2 0 0 $1880000 If the cost of capital for both projects is 15%, the net present value (NPV) for Project 1 is: A. less than the NPV of Project 2. B. equal to the NPV of Project 2. C. greater than the NPV of Project 2.

单选题According to Economics Theory, Challenges to implementing a discretionary fiscal stimulus in a timely manner are least likely to include the: A. government payments for unemployment benefits. B. need to convince lawmakers that action must be taken. C. inability of policymakers to forecast a recession precisely.

单选题A CFA candidate, who is an investment bank equity analyst writes a research report on an oil company recommending a buy. After reviewing the report and not seeing any disclosures a pension fund manager asks the analyst if the investment bank is currently undertaking any corporate finance activity with this oil company. The analyst does not mention or include in the research report, that he is related to the majority shareholder of the investment bank and that he owns shares in the oil company. According to the Standards of Practice Handbook, the analyst is least likely to have violated the CFA Institute Standards of Professional Conduct that relates to: A. disclosure of conflicts. B. independence and objectivity. C. additional compensation arrangements.

单选题For a given good or service, the marginal social benefit ( MSB and the marginal social cost (MSC) curves are least accurately described by which of the following? A. Producer surplus is determined by price and the MSC curve and consumer surplus is determined by price and the MSB curve. B. The efficient allocation of resources occurs where the difference between the MSB and MSC curves is maximized. C. The market demand curve is the same as the MSB curve, and the market supply curve is the same as the MSC curve.

单选题Suni Kioshi, CFA, is an analyst at Pacific Asset Management, where she covers small-capitalization companies

单选题An analyst does research about monopolistic competition. Which of the following statements is most accurate? Long-run economic profit under monopolistic competition is zero because: A. entry into and exit from the market are possible with fairly low costs. B. each firm produces a differentiated product. C. two or more firms have the incentive to collude.

单选题The yield on an industrial bonds is 8.59 percent while the yield on a benchmark bond with the same maturity is 6. 83 percent. The relative yield spread is closest to;

单选题An equity analyst needs to select a representative sample of manufacturing stocks. Starting with the population of all publicly traded manufacturing stocks, she classifies each stock into one of the 20 industry groups that form the Index of" Industrial Production for the manufacturing industry. She then selects a number of stocks from each industry based on its weight in the index. The sampling method the analyst is using is best characterized as:

单选题An analyst does research about dividend distribution. All else being equal, the payment of a cash dividend most likely results in a decrease in the company's: A. retained eamings. B. debt-equity ratio. C. debt-assets ratio.

单选题Scan, CFA, is a portfolio manager for RBS Investment Management Company-a registered investment organization that advises investment companies and private accounts-was promoted to that position three years ago. Richard, his supervisor, is responsible for reviewing Sean's portfolio account transactions and his required monthly reports of personal stock transactions. Scan has been using Marcy, a broker, almost exclusively for portfolio account brokerage transactions. For securities in which Marcy's firm makes a market, Marcy has been giving Scan lower prices for personal purchases and higher for personal sales than Marcy gives to Sean's portfolio accounts and other investors. Sean has been filing monthly reports with Richard only for those months in which he has no personal transactions. Which of the following is least likely to be a violation of the Code and Standards? A. Scan failed to disclose to his employer his personal transactions. B. Richard failed enforce reasonable procedures for supervising and monitoring Sean's trading for his own account. C. Richard allowed Scan to use Marcy as his broker for personal trades.

单选题The Dow Jones Industrial Average accounts for stock splits by: A. multiplying the index by the stock split ratio. B. reducing the market capitalization of the stock experiencing the split. C. increasing the weighting of the stock experiencing the split.

单选题Assume that on January 1,2005, a firm with no Global Investment Performance Standards (GIPS) compliant history since its inception four years ago wishes to claim compliance with GIPS. Which of the following accurately reflects the appropriate action for the firm to take? A. Comply with GIPS for the year beginning January 1,2002, and report its performance prior to this date with a disclosure of why the earlier years are not GIPS compliant. B. Comply with GIPS for the year beginning January 1,2002, and report only performance results since this date. C. Comply with GIPS for all four periods since the firm's inception.

单选题During an onsite company visit, Yu Ding, CFA, accidentally overheard the Chief Executive office (CEO) of AMP, Inc., discussing the company"s pending tender office to purchase Dynamica Enterprises, a retailer of stargazer products, According to the Standards of practice Handbook, Yu Ding may not use the Information to take investment action because:

单选题Which of the following reasons is the best reason NOT to enhance the credit quality of an asset backed security (ABS) pool?

单选题Which of the following market structure characterized that a large number of competitors produce (slightly) differentiated products with low barriers to entry?

单选题A company being analyzed has net income of $ 97, liabilities of $ 600, preferred equity of $ 30, total shareholder equity of $ 700, interest expense of $ 48, and preferred dividends of $1.80. What is the return on common equity?

单选题The income method for real estate valuation does NOT: A. require a discounted cash flow model. B. account for the effects of income taxes. C. account for the effects of property taxes.

单选题The crowding-out effect is most likely associated with:

单选题A real estate investment has the following characteristics: Annual rental income $1800000 Annual operating expenses $1200000 Available mortgage rate 6% Financing percentage 90% Required rate of return 15% Estimated holding period 5 years Investor's tax rate 25% Based on the income approach, the value of the investment is closest to:

单选题Juniper Corp's stock transactions during the year 2004 were as follows: January 1 540000 shares issued and outstanding March 1 50 percent stock dividend July 1 180000 treasury shares reacquired October 1 60000 treasury shares reissued When computing for earnings per share (EPS) computation purposes, what was Juniper's weighted average number of shares outstanding during 2004?