单选题Which of the following statements concerning the arbitrage-free valuation of non-Treasury securities is TRUE? The credit spread is: A. only a function of the bond's default risk. B. only a function of the bond's term to maturity. C. a function of default risk and the term to maturity.

单选题Stolzenbach Technologies has a target capital structure of 60 percent equity and 40 percent debt. The schedule of financing costs for the Stolzenbach is shown in the table below:

单选题Linda Chin, CFA, is a member of a political group advocating less governmental regulation in all aspects of life

单选题For a material item to be classified as an extraordinary item on the income statement, the item must be: A. current and unusual in frequency. B. probable and infrequent in nature. C. unusual in nature and infrequent in occurrence.

单选题Before disseminating changes in his firm's buy/sell list. Johnson, a CFA candidate, calls his best clients to apprise them of the pending change. Based on the AIMR Standards of Professional Conduct, what standard, if any, did Johnson violate? A. Standard Ⅲ (B), Fair Dealing. B. Standard Ⅳ (B), Priority of Transactions. C. Standard Ⅱ (A), Prohibition Against Use of Material Nonpublic Information.

单选题An analyst does research about financial leverage and gathers the following information about a company: Units produced and sold in 2010 150000 Degree of operating leverage at 150000 units 2.5 Degree of financial leverage 2.0 Expected growth rate of unit sales in 2011 10% The expected change in operating income for 2011 is closest to: A. 20%. B. 25%. C. 50%.

单选题A company which prepares its financial statements in accordance with IFRS incurred and capitalized 2 million of development costs during the year

单选题According to the Markowitz model of portfolio risk, any portfolio with 10 securities would require estimation of a total of:

单选题Credit spreads are most Iikelyto narrow during:

单选题Compared to normal markets, the existence of fraud and the use of violence in black markets generally leads to: A. poorer economic efficiency. B. superior economic efficiency. C. lower profit rates for sellers.

单选题Generally speaking, all else being equal, an upward-sloping yield curve can be expected when: A. inflationary expectations are beginning to subside and investors begin to show a preference for more liquid/less risky short-term securities. B. the supply of long-term funds falls short of demand and investors begin to show a preference for more liquid/less risky short-term securities. C. inflationary expectations are beginning to subside.

单选题A consumer has a budget of $30 per month to spend on two types of fruit, priced as follows: Apples: $2

单选题A 2-year bond is carried on the books at a premium because it was issued at a coupon rate 1/4 percent higher than the market rate. After one year, market rates have gone up by 112 percent. The bond will now be listed on the books as having: A. the same premium it had when originally issued. B. a lower premium than when it was originally issued. C. par value.

单选题An investor bought a 15 call for $14 on a stock trading at $20. If the stock is trading at $24 at option expiration, what is the profit and the value of the call at option expiration? Profit Value of the Call ①A. - $5 $5 ②B. $4 - $5 ③C. - $5 $9

单选题A perfect competition has all of the following characteristics EXCEPT: A. barriers to entry don't exist. B. each competitor is small relative to the overall market. C. a differentiated product.

单选题Stanley Crux, CFA, a portfolio manager at NWS Asset Management Ltd, calls a friend to join him for dinner. The friend, a financial analyst at D&M Corporation declines the invitation and explains that she is performing due diligence on Orca Electronics, a company that D&M is about to acquire. After the phone call, Crux searches the Internet for any news of the acquisition but finds nothing. Upon verifying that Orca is on NWS's approved stock list, Crux purchases Orca's common stock and call options for the NWS clients. Two weeks later, D&M announces its intention to acquire Orca. The next day, Crux sells all of the Orca securities, giving the fund a profit of $3 million. According to the Standards of Practice Handbook, did Crux violate any CFA Institute Standards of Professional Conduct? A. No. B. Yes, because he traded on material nonpublic information. C. Yes, because he only purchased stock and options for selective clients, not all clients.

单选题What is the present value of a 12-year annuity due that pays $ 5000 per year, given a discount rate of 7.5 percent?

单选题A company's beginning inventory was overstated by $ 3000, now ending inventory is understated by $ 2000. If purchases were properly reported, then earnings before taxes will be. A. understated by $ 5000. B. overstated by $5000. C. understated by $1000. Use the following date to answer question 59 to 61. {{I}}Units{{/I}} {{I}}Unit Price{{/I}} Beginning Inventory 709 $2.00 Purchases 556 $6.00 Sales 959 $13.00 SGA Expenses $ 2649 per annum

单选题An analyst gathered the following information for a company: Risk-free rate = 6.75% Expected market return = 15.00% Beta = 1.30 Dividend payout ratio = 55% Profit margin = 10.0% Total asset turnover = 0.75 Assets to equity ratio = 2.00 What is the firm's sustainable growth rate? A. Tax rate needed to determine answer. B. 6.75%. C. 15.00%.

单选题For a given change in yields, the difference between the actual change in a bond's price and that predicted using the duration measure will be greater for: