2007 schweser answers explanations of book 6 exam 2 pm
2007 schweser answers explanations of book 6 exam 2 pm
... 杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question35#4 52 46 Youranswer:Bwascorrect!whereristhenominalriskfreerate.Hence,ThenominalrateintheU.S.is5% =2+ 3.TheresultisthatUsing(1. 02) (1.03)?1=0.0506fortheU.S.nominalrateproducesaresultof4. 12% .Question 36 #4 524 7Youranswer:Cwascorrect!OpenmarketoperationsaretheU.S.FederalReserve抯mostoftenusedtoolforchangingthemoneysupply.Question37#4 524 8Youranswer:Dwascorrect!Thedemandforlaborisaderiveddemand.Whenthedemandforthefinalgoodorserviceincreases,thepriceofthatfinalgoodorserviceincreases.Thatincreaseinpricewillleadtothefirmemployingmoreoftheresourcesusedinproductionateachresourceprice,includinglabor.Question38#4 524 9Youranswer:Awascorrect!Intheshortrun,anincreaseinthemoneysupplywillincreaseaggregatedemand.Thenewshortrunequilibriumwillbeatahigherpricelevelandagreaterlevelofrealoutput(GDP).Question39#4 525 0Youranswer:Bwascorrect!杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Tofindthecovariance,wemusttakethecrossproductsofthedifferences.Question85#4 529 7Youranswer:Dwascorrect!Astopbuyorderisaconditionalmarketorderbywhichaninvestordirectsthepurchaseofastockifitrisestoacertainprice.Stopbuysareplacedabovethecurrentmarketprice.Limitorderscanhavemarketpriceasthelimit,usedwhenlackofliquidityisaconcern.Question 86 #4 529 8Youranswer:Dwascorrect!Theshortsellerhopesthatthecurrentpriceistoohighandhopesthatitwillfallinthefuture.However,notradingruleexiststhatrequirestheshortsellertosubsequentlyreplacetheborrowedstockatapricelowerthanthepriceatwhichheorshesoldthestock.Question87#4 529 9Youranswer:Bwascorrect!ThepriceweightedindexonDecember31 ,20 05equalsandonDecember31 ,20 06equalsTheoneyearholdingperiodreturnisYearDif.Stock1Dif.Stock2CrossProduct99400007??501?15?5杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！homeowner.Ifthehomeownerprepays,theholderofthebondhasreinvestmentrisk.Embeddedoptionsinbondsareinseparablefromtheunderlyingbondandtradewiththatbond.Question1 06 #45 327 Youranswer:Bwascorrect!Thecleanpriceofthebondisthequotedprice,89.14%ofparvalue,whichis$891.40.Question107#45 328 Youranswer:Dwascorrect!Resettinginterestratesmakesthebondless,notmore,susceptibletointerestratechanges.Question108#45 329 Youranswer:Dwascorrect!Whentheforeigncurrencyappreciates,eachforeigncurrencydenominatedcashflowbuysmoredomesticcurrencyunits梚ncreasingthedomesticcurrencyreturnfromtheinvestment.Theappreciationoftheforeignassetbenefitstheinvestoraswell.Question109#45331Youranswer:Dwascorrect!Forwardsaresubjecttodefaultrisk,butfuturesarenot.Forwardsareprivatecontracts,butfuturesareexchangetraded.Forwardsareindividualizedcontracts,butfuturesarestandardized.Question110#453 32 Youranswer:Cwascorrect!ChoiceAisincorrectbecausespeculatorsenterthefuturesmarketinpursuitofprofit,acceptingriskintheendeavor.杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Notethatthepriceisalwaysoneyearbeforethedividenddate.SolveforthePVof$10tobereceivedintwoyears.FV=10;N =2 I/Y=17;CPT→PV=$7.31.Question91#45303Youranswer:Dwascorrect!Theforecastyearendprice,P,is:Question 92 #45304Youranswer:Dwascorrect!Thisindustryappearstobeintherapidacceleratinggrowthphase.Thisphaseischaracterizedbythedevelopmentofnewproductsandrapiddemandgrowth.Thereislimitedcompetition,andsalesgrowthandprofitmarginsarehighandaccelerating.Question93#45305Youranswer:Awascorrect!Supplyanddemandaregovernedbymanyfactors,bothrationalandirrational.Question94#45307Youranswer:Bwascorrect!Specifictradingrulesrequiremuchsubjectivejudgment.杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question44#4 525 5Youranswer:Bwascorrect!Anaturalmonopolymayexistwheneconomiesofscalearegreat.Thelargeeconomiesofscalemakeitinefficienttohavemanysmallproducers.Question45#4 52 56 Youranswer:Bwascorrect!Extraordinaryitemsareunusualandinfrequentitemsthatarereportedseparately,netoftax揵elowtheline.?Question 46 #4 525 7Youranswer:Bwascorrect!Thisisthedirectmethod,whichstartsatthetopoftheincomestatementwithsalesandthenworkswiththeindividualcomponentsofnetincomedirectlyrelatedtocashflows.Question47#4 525 8Netsales+1 ,20 0Accountsreceivable(down)+ 25 Cashcollectedfromcustomers+1 ,22 5Costofgoodssold?nbsp; 65 0Inventory(up)?nbsp;100Accountspayable(up)+50Cashpaymentsforinputs?nbsp;700Cashinterestpaid?nbsp;45Cashinterestreceived+ 20 Cashflowfromoperations+$500杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！StandardIII(C)Suitability.Membersandcandidatesshouldcarefullyconsidertheneeds,circumstances,andobjectivesofclientsbeforetakinginvestmentaction.However,somemembersandcandidatesaremerelyexecutingspecificinstructionsforretailclients.Inthiscase,sinceWellsbelievesthetradeisunsuitable,Wellsshouldconfirmthattheclientisawaretheactionisunsuitablebeforeexecutingthetradeorrefrainfrommakingthetrade.Question5#4 52 16 Youranswer:Awascorrect!StandardI(C)Misrepresentation.JameshasactedinappropriatelyinaskingJonestoplagiarizethereportandmayhaveviolatedseveralStandards,includingStandardIV(C)ResponsibilitiesofSupervisors.However,hehasnotviolatedtheprohibitionagainstplagiarisminStandardI(C).Jones,ontheotherhand,evenifactingontherequestofhersupervisor,willviolateStandardI(C)Misrepresentation.Makingminorchangestoareportdoesnotmakeityourown.Question6#4 521 7Youranswer:Awascorrect!AccordingtoStandardII(B)MarketManipulation,membersandcandidatesshouldnotengageinanypracticethatwouldartificiallyinflatetradingvolumeordistortprices.However,thisStandarddoesnotprohibittransactionsdonefortaxpurposes.Inthiscase,therewasnointenttomisleadmarketparticipantsastothestockpriceofSafetyAirlines,andthetradeswereundertakentotakeadvantageofalegitimatetaxstrategy.ThustherehasbeennoviolationofStandardII(B)oranyotherStandard.Question7#4 521 8Youranswer:Dwascorrect!StandardI(B)IndependenceandObjectivityallowsinvestorpaidresearchbutrequiresthatmembersandcandidateslimitthetypeofcompensationtheyacceptforwritingaresearchreportsothatitisnotdependentontheconclusionsoftheresearchreport.Bestpracticeisforanalyststoonlyacceptaflatfeeforsuchcompanypaidresearchreports.Suchresearchshouldalsoincludecompletedisclosureofthenatureofthecompensationreceivedforwritingsuchareportsothatinvestorswillnotbemisledastotherelationshipbetweentheanalystandthecompany.杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Bwascorrect!Thecompanyboughtequipmentfor$ 120 ,whichwasacashoutflow.Question48#4 525 9Youranswer:Cwascorrect!Question49#45 26 0 Youranswer:Cwascorrect!Whenusingthedirectmethodofcalculatingoperatingcashflows,depreciationandamortizationarenot揳ddedback?(tonetincome)becausewedon抰beginwithnetincomeunderthedirectmethod.Depreciationandamortizationarenoncashchangesandarenotusedunderthedirectmethod.Theotherstatementsaretrue.Interestpaymentsondebtaffectcashflowfromoperations.Whenusingtheindirectmethod,ananalystshouldaddanylossesonsalesoffixedassetstonetincomesincetheyarenotoperatingcashflows.Question50#45 26 1 Youranswer:Dwascorrect!Inaperiodofrisingprices,LIFOresultsinhigherCOGS,lowertaxes,lowernetincome,lowerinventorybalances,lowerworkingcapital,andhighercashflowsduetolesstaxespaidout.Inafallingpriceenvironment,itisthereverse.Also,FIFOinventoryleadstooppositeresultsforbothrisingandfallingprices.Question51#45 26 2 Youranswer:Awascorrect!Paiddividend?5Saleofstock +27 5Retireddebt ?25 Financingcashflow+ 125 杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Thecircumstancesofthebankruptcydidnotinvolvefraudulentordeceitfulbusinessconduct,sothereforethereisnoviolationofStandardI(D)Misconduct.Hart抯bankruptcydoesnotcompromisehisprofessionalreputationortheintegrityoftheCFAdesignation.Question13#4 522 4Youranswer:Cwascorrect!UndertheCodeandStandards,Marshallhasanobligationtodisclosethatshereceivesspecialcompensationbasedontheamountofclienttradingvolume.StandardVI(A)DisclosureofConflictsrequiresmemberstodisclosetoclientsandprospectsallmattersthatcouldpotentiallyimpairthemember抯abilitytomakeinvestmentdecisionsthatare(andtogiveinvestmentadvicethatis)objectiveandunbiased.Question14#4 522 5Youranswer:Bwascorrect!StandardVI(A)DisclosureofConflicts.Matlockmustdisclose(1)specialrelationships梔irectorshipsandconsultancies, (2) investmentbanking,(3)underwritingandfinancialrelationships,(4)brokerdealermarketmakingactivities,and(5)materialbeneficialownership.ThefactthatMatlock抯sonworksforKingCompanyisnotaconflictrequiringdisclosuretoclientsandprospectssincehissonisnotamanagerofthefirm,inwhichcaseitcouldbe.Question15#4 52 26 Youranswer:Dwascorrect!UnderStandardIII(E)PreservationofConfidentiality,membersandcandidatesshouldmaintaintheconfidentialityofinformationreceivedinthecourseoftheirprofessionalservicerelatingtobothcurrentandformerclients.Inthecaseofillegalactivity,however,Reillymayhavealegalobligationtoreporttheactivity.Ideally,heshouldconsultwithhisemployerfirstaboutwhatactionshemayberequiredtotake.Ofthechoicesgiven,seekingtheadviceofoutsidecounselastowhetherhehassuchanobligationunderlocallawandwhethertheactivityisindeedillegalistheonepermittedundertheStandard.Question 16 #4 522 7Youranswer:Bwascorrect!杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Bwascorrect!Thecumulativeabsolutefrequencyofthefourthintervalis80,whichisthesumoftheabsolutefrequenciesfromthefirsttothefourthintervals.Question21#4 523 2Youranswer:Awascorrect!Inthissituation,thecoefficientofdetermination(R 2 )isthepercentageoftotalvariationinthedependentvariable(companysales)explainedbythevariationintheindependentvariable(industrysales).totalvariation(SST)=unexplainedvariation(SSE)+explainedvariation(SSR)So,thecoefficientofdeterminationcanbeexpressedas:AnR 2 of0 .25 indicatesthatthevariationinindustrychipsalesexplains25%ofvariationinsalesofTastyChips.Forasimpleregression(oneindependentvariable)thesquarerootoftheR 2 isthecorrelationbetweenthevariables,Question 22 #4 523 3Youranswer:Awascorrect!Theaverageannualcompoundgrowthrateiscalculatedas:[(1+0 .25 )(1?0 .25 )(1+0.30)(1?0.30)]0 .25 ?1=0. 961 1?1=?.0389or?.89%.Aninitial$10,000investmentwouldbeworth10,000(1 .25 )(0.75)(1.3)(0.7)=$8,531.Question23#4 523 4Youranswer:Dwascorrect!杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！The95%confidenceintervalis10%?1. 96( 4%)orfrom2. 16% to17.84%.Question31#4 524 2Youranswer:Awascorrect!Usingthestandardnormalprobabilitydistribution,,thechanceofgettingzeroorlessreturn(losingmoney)is1?0.97 72= 0. 022 8%or2 .28 %.Analternativeexplanation:theexpectedreturnis10%.Tolosemoneymeansthereturnmustfallbelowzero.Zeroisabouttwostandarddeviationstotheleftofthemean.50%ofthetime,areturnwillbebelowthemean,and2.5%oftheobservationsarebelowtwostandarddeviationsdown.About97.5%ofthetime,thereturnwillbeabovezero.Thus,onlyabouta 2. 5%chanceexistsofhavingavaluebelowzero.Question 32 #4 524 3Youranswer:Cwascorrect!Accordingtothecentrallimittheorem,thesamplemeanforlargesamplesizeswillbedistributednormallyregardlessofthedistributionoftheunderlyingpopulation.Question33#4 524 4Youranswer:Dwascorrect!Thecrowdingouteffectreferstoareductioninprivateborrowingandspendingasaresultofhigherinterestratesgeneratedbybudgetdeficitsthatarefinancedbyborrowingintheprivateloanablefundsmarket.Question34#4 524 5Youranswer:Awascorrect!Aggregatehoursmeasuresthetotalnumberofhoursworkedinayearbyallemployedpeople.Aggregatehourstakesaccountofboththelevelofemploymentandtheaverageworkweek,makingitsuperiortoeitherofthosemeasuresasanindicatoroftotallaborperformed.Totallaborcompensationisameasureofrealwageratesthatincludeswages,salaries,andemployerpaidbenefits.杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question88#45300Youranswer:Cwascorrect!Themarketvaluesoftheindexarecalculatedinthetablebelow.Question89#45301Youranswer:Awascorrect!Ifcapitalmarketsareweakformefficientandsemistrongformefficient,nopubliclyavailableinformationcanbeusedtoearnabnormal(riskadjusted)returns.Question90#453 02 Youranswer:Bwascorrect!Timeline=$0now;$0inyear1;$0inyear2;$1inyear3.December31 ,20 05牋SharePrice牋NumberofSharesOutstanding牋MarketValueStockA牋$10牋5,000牋$50,000StockB牋$40牋10,000牋$400,000StockC牋$50牋 12, 000牋 $60 0,000Total牋牋牋?1,050,000December31 ,20 06 牋SharePrice牋NumberofSharesOutstanding牋MarketValueStockA牋$155,000牋$75,000StockB牋$30牋10,000牋$300,000StockC牋 $25 牋 12, 000牋$300,000Total牋牋牋牋 $67 5,000杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！COGSFIFO =27 ,000?(1,400?1 ,20 0)=$ 26 , 800.Question 62 #4 527 3Youranswer:Bwascorrect!Capitalizingcoststendstosmoothearningsandreducesinvestmentcashflows.Itwillalsoincreasecashflowsfromoperationsandincreaseprofitabilityintheearlyyears.Question63#4 527 4Youranswer:Awascorrect!Question64#4 52 76 Youranswer:Awascorrect!Firstfindthecurrentratio:Next,usealgebratosolveforthelevelofcurrentassetsthatwouldsatisfyacurrentratioof 2. 4:X=1 ,20 0,000.1 ,20 0,000?1,000,000 =20 0,000socurrentassetswouldneedtoincreaseby $20 0,000.Dothesamethingforcurrentliabilities:X=4 16, 667 .Currentliabilitieswouldneedtodecreaseby500,000?4 16, 667 =$83,333.Question65#4 527 7Youranswer:Bwascorrect!PMT=800,000;FV=10,000,000;N=5;I/Y=8 .25 ;CPT→PV=$9,900,837杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question58#45 26 9 Youranswer:Bwascorrect!OnlyStatementIIIisfalse.Inperiodsofdecliningprices,LIFOinventoryvalueswillbehigher,leadingtohigherassetandequityvaluesandlowerdebttoequityratios.FIFOinventoryvaluesarepreferredbecausetheybetterapproximatereplacementcost.FIFOCOGS=LIFOCOGS?changeinLIFOreserve.COGS=purchases+beginninginventory?endinginventory,sothereisanegativerelationbetweenCOGSandmisstatementsofendinginventory.Question59#4 527 0Youranswer:Dwascorrect!Question60#4 527 1Youranswer:Dwascorrect!Generally,LIFOcausesCOGStobelargeandnetincometobesmall,soswitchingtoFIFOshouldreversethis,forcingCOGSdownandincomeup.Sotheanswershouldbepositive.TheLIFOreservewentup90?85=+5,soswitchingtoFIFOwilldecreaseCOGSby5,000,whichwillincreasegrossprofitby5,000andnetincomeby(5,000)(1?0 .28 )=+3 ,60 0.Question61#4 527 2Youranswer:Bwascorrect!COGSFIFO=COGSLIFO?(endingLIFOreserve?beginningLIFOreserve)杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！ChoiceBisincorrectbecausehedgerstradefuturestoreducesomepreexistingriskexposure.ChoiceDisincorrectsincetheclearinghousetakesnoactivepositioninthemarket,butinterposesitselfbetweenallpartiestoeverytransaction.Thus,theclearinghouseguaranteesthattradersinthefuturemarketwillhonortheirobligations.Question111#45334Youranswer:Bwascorrect!Calloptionsrepresentanobligationtoperforminthecaseoftheseller.Theowneroftheoption(buy)hastheright,butnotanobligation,topurchaseanunderlyinggoodataspecifiedpriceforaspecifiedtimefromtheseller.Question1 12 #45335Youranswer:Awascorrect!VT=ST+Max(0,X?ST)VT=$0.70+Max(0,0.75?0.70)=$0.75π=VT?V0?0.75?(S0+P0)=$0.75?(0 .67 +0.14)=?0. 06 Professor抯Note:Hereishowaputworks.Assumeashareofstockandaputonitat$75haveacombinedcostof$81.Ifthestockpriceatexpirationis$75orless,theputisexercisedandthestocksoldfor$75.Thelossis $6. Question113#453 36 Youranswer:Awascorrect!Inaforeigncurrencyswap,bothpartiesexchangefullinterestpayments.TheNewZealandcompanypays6%variableonUSD(USD60,000).TheU.S.companypays7%fixedonNZD(NZD140,000).Question114#45338杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question99#45315Youranswer:Bwascorrect!Aftertaxyield=pretaxyield(1?marginaltaxrate)=0. 06( 1?0 .28 )=0.0432or4. 32% .Question100#45317Youranswer:Dwascorrect!OfftherunTreasurysecuritiesrefertoolderTreasuryissues.PrefundedmunicipalbondsarebondscollateralizedbyanescrowofsecuritiesguaranteedbytheU.S.government.Revenuebondsaresupportedthroughrevenuesgeneratedfromprojectsthatarefundedwiththehelpoftheoriginalbondissue.Question101#45318Youranswer:Bwascorrect!ABEYof8%isequivalenttoa6monthdiscountrateof8 /2= 4%.r=(1.0748)0.50?1r=0.0 367 or7.34%onabondequivalentbasisQuestion1 02 #45 320 杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！CF0=?,000;CF1andCF 2 =1,900;CF3 =2, 500;CF4 =2, 000.Discount= 12% .ComputeIRR =23 .19%.Question 72 #4 528 4Youranswer:Awascorrect!Reliabilityreferstoinformationthatcanbeverified(measuredaccurately)andhasrepresentationalfaithfulness(itiswhatitisreportedtobe).Withoutthesetwocharacteristics,datacannotberelieduponinmakinginvestmentdecisions.Reliableinformationshouldalsoreflectneutralityinthatitdoesnotconsidertheeconomicimpactofthereportedinformation.So,ChoicesB,CandDareallcharacteristicsofreliability.Predictivevalueisnotacharacteristicofreliability;itisassociatedwiththerelevanceofaccountinginformation.Question73#4 528 5Youranswer:Awascorrect!Investorsshouldtakestepstoactuallydiscouragetheuseofthecorporatefundstopay揼reenmail.?Question74#4 52 86 Youranswer:Cwascorrect!CAPM=0.05+1.5(0. 06) =14%Question75#4 528 7Youranswer:Dwascorrect!Ifthefirmisallequityfinanced,thebreakevenpointforretainedearningsisThus,everydollarthatthefirmspendsontheircapitalbudgetwillbeequitydollars.Question 76 #4 528 8杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Dwascorrect!Question103#45 322 Youranswer:Awascorrect!(?(8)(?.005)+(50)(?.005 )2= +0.0400+0.00 125 =+0.04 125 ,orup4. 125 %.Thepricewouldthusbe$1,000×1.04 125 =$1,041 .25 .Question104#45 323 Youranswer:Bwascorrect!CreatingaCMOcanredistributetheprepaymentriskamongthetranches,butitdoesnotaltertheoverallprepaymentriskofamortgagepassthroughsecurity.CMOsarecreatedfromMBS.AlthoughMBSandcallablebondsbothhavereinvestmentrisk,thecashflowsfromanMBSaredifferentinthatmortgageloansareamortizing.Couponbondsarenotamortizing,andabondcallusuallyinvolvesthewholeissue,whereasprepaymentsareforpartoftheoutstandingprincipal.TheMBSandcouponbonddoshareprepaymentriskbecausethecalloptionbenefitstheissuer,orhomeowner,nottheinvestor.Question105#45 325 Youranswer:Dwascorrect!Aputprovisionallowstheinvestortoputthebondbacktotheissuerifinterestratesrise.Thus,aputoptionbenefits(andmaybeexercisedby)theholder,nottheissuer.Theotherstatementsaretrue.Interestratefloorsbenefittheholderbyprovidingalowerlimit(orminimum)ontheinterestratethebondholderwillreceive.Tounderstandwhytheprepaymentrightgrantedtoamortgageholderbenefitstheissuer,rememberthattheissuerhereisthehomeowner.Thebankactsasapassthroughfromthehomeownertotheownerofabondcollateralizedbytheloan.Therighttoprepayifinterestratesdecreaseisabenefittothe杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question95#45309Youranswer:Awascorrect!sopriceispositivelyrelatedtothegrowthrateandthedividend,andnegativelyrelatedtotherequiredreturn.ThegrowthrateispositivelyrelatedtoROEandtheretentionratio(g=RR×ROE).Professor抯Note:Startwiththepricingequationandholdallvariablesconstantexceptpricesandtheoneyouareinterestedin.Question 96 #45310Youranswer:Dwascorrect!Whenconstructingsamples,researchersmustbevarycarefulnottoincludejustsurvivingcompanies,mutualfunds,orinvestmentnewsletters.Sincesurvivorstendtobethosethathavedonewell(byskillorchance),samplesofmutualfundsthathavea10yeartrackrecords,forexample,willexhibitperformancehistorieswithupwardbias.Mutualfundcompaniesregularlydiscontinuefundswithpoorperformancehistoriesorrolltheirassetsintobetterperformingfunds.Therefore,ChoiceDiscorrect.Question97#453 12 Youranswer:Bwascorrect!Thepriceofabondchangesintheoppositedirectiontothechangeininterestrates.Longterm,lowcouponbondsaremoresensitivethanshorttermandhighcouponbonds.Pricesaremoresensitivetoratedecreasesthantorateincreases(durationrisesasyieldsfall).Question98#45313Youranswer:Cwascorrect!ThefriendisincorrectabouttheTIPS(thecouponrateisfixed,theparvalueisadjustedforinflation)andiscorrectaboutthebidaskspreadforontherunissues(ontherunissuesaremoreliquidandthushaveanarrowerbidaskspread).杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Aftertaxcashflowis[300,000 ?20 0,000 ?60 ,000?35,000](1?0.35)?34,919 +60 ,000= 28 ,331.Question118#453 42 Youranswer:Cwascorrect!Thefeemayactuallybesubstantialsince,inadditiontopayingthemanageroftheFOF,afeemustbepaidtoeachhedgefundwithintheFOF.Question119#45343Youranswer:Awascorrect!Openendfundsredeemexistingsharesorissuenewsharesinaccordancewithinvestordemand.Closedendfundsharesarefixedinnumberandtradeonexchangesasthoughtheywerecommonstock.Question 120 #45344Youranswer:Dwascorrect!Longcommoditiespositionswouldtendtohedgetheriskthatbondswoulddeclineinvaluebecauseofincreasesininflationorbecauseofhigherinterestratesduetoanincreaseintheoveralllevelofeconomicactivity.Sellingbondfutureswouldhedgeagainstrisingrates.Interestrateputsincreaseinvalueasratesfallandwouldnotprovideahedge.杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！StandardII(A)MaterialNonpublicInformationrequiresthatmembersandcandidateswhopossessmaterialnonpublicinformationnotactorcauseotherstoactontheinformation.Puttingthestockonarestrictedlist,refusingthetrade,orsharingtheinformationwithhissupervisor,areallpotentialviolationsofthisStandardsincetheyinvolveactingorcausingotherstoactonthenonpublicinformationhepossesses.DeanshouldseektohaveEastStreetmaketheinformationpublic.Ifpublicdisseminationisnotmade,heisnotallowedtoactontheinformation.Refusingtomakethetradehewasinstructedtomakewouldbe揳cting?ontheinformationinthiscase.Theobligationhereistotheintegrityoffinancialmarkets.Question17#4 522 8Youranswer:Cwascorrect!Afirmcanincludenoncompliantperformancedatafortheperiodjustpriortotheperiodofcompliantperformancedata,aslongasnononcompliantdataforperiodsafterJanuary1, 20 01isincluded,allnoncompliantdataareidentified,andthewaysinwhichthedataarenoncompliantaredisclosed.Firmsmustsupplyalistofcompositesandcompositedescriptionsonlytoclientsandprospectsthatrequestit.Firmsmustaddoneyearofcompliantperformanceinformationeachyearuntilatotaloftenyearsdataarereported.Question18#4 522 9Youranswer:Awascorrect!TheCFAInstitute抯GIPSrequirethat,toclaimcompliance,firmsmustpresentGIPScompliantperformanceinformationforaminimumoffiveyears,orsinceinceptionifinexistencelessthanfiveyears.Question19#4 523 0Youranswer:Bwascorrect!Thisprobleminvolvesdeterminingthepresentvalueofanannuityfollowedbyfindingthepresentvalueofalumpsum.EnterPMT=10,000,N=10,andI/Y=14.ComputePV= 52, 161 . 16. Thatisthepresentvalueofthe10yearannuity,4yearsfromtoday.Next,weneedtodiscountthatbacktopresentfor4yearstofindtheamountoftheinvestmenttoday.EnterFV= 52, 161 . 16, N=4,I/Y=14,PMT=0.ComputePV=30,883.59.Question20#4 523 1杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Dwascorrect!Asrandomlyselectedsecuritiesareaddedtoaportfolio,thediversifiable(unsystematic)riskdecreases,andtheexpectedlevelofnondiversifiable(systematic)riskremainsthesame.Question 82 #4 529 4Youranswer:Awascorrect!BasedontheCAPM,theportfolioshouldearn:E(R)=0.05+1.5(0.15?0.05)=0 .20 or20%.Onariskadjustedbasis,thisportfolioliesontheSMLandisthusearningtheproperriskadjustedrateofreturn.Question83#4 529 5Youranswer:Cwascorrect!Theseethicalissuesfallundertheheadingofindividualinvestorconcerns.Someinvestorswouldexcludethesetypesofinvestmentsduetotheirownpersonalpreferences.Question84#4 52 96 Youranswer:Awascorrect!Tofindthecorrelationcoefficientbetweenthetwostocks,wemustfirstfindthestandarddeviationsofeachstockandthenfindthecovariancebetweenthestocks.Thecorrelationcoefficientisthecovariancedividedbytheproductofthestandarddeviations.YearStock1(xavg) 2 Stock2(xavg) 2 99 12 16 500015490 25 01? 121 10 25 avg=8sum=1 86 avg=5sum=50杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Thelawofdiminishingreturnsstatesthatatsomepoint,asmoreofaresourceisusedinaproductionprocess,holdingotherinputsconstant,outputincreasesatadecreasingrate.ThisaccountsfortheupwardslopeoftheSRMCcurvebeyondthatpoint.Returnstoscaledeterminetheshapeofthelongruncostcurves.Question40#4 525 1Youranswer:Bwascorrect!Underperfectcompetition,eachfirmfacesaflatdemandcurve.Thismeansthepriceisconstantandthemarginalrevenuelineisflat.AcompanywillcontinuetoproduceaslongasMR>MC,sothecompetitivecompanywillproduceaslongasP>MC.ItwillstopwhenMC=MR=P.Question41#4 525 2Youranswer:Cwascorrect!Intheshortrun,thedecisiontooperateisbasedonwhetherpricecoversaveragevariablecosts.Inthelongrun,averagefixedcostsmustbeconsideredaswell.Sunkcostsarehistoricalcosts.Sinkingfundsareestablishedtoretirelongtermdebt.Themarginalrevenuefromsellinganadditionalunitofoutputmustbeatleastasgreatasitsmarginalcostofproduction.Question 42 #4 525 3Youranswer:Awascorrect!ToconvertMexicanpesopricestoU.S.dollars,divideby 12. ShoesarecheaperinMexicoversustheU.S.(40versus50);soaretoys(3versus4)andhats(8versus10).Therefore,theU.S.shouldimportallthreegoodsfromMexico.Question43#4 525 4Youranswer:Cwascorrect!TheAUDdepreciatedbecauseitnowtakesmoreAUDtobyaUSD.Acrossrateistheexchangeratebetweentwocountriesderivedfromtheirexchangerateswithathirdcountry.Directexchangeratesdon抰necessarilyinvolvetheU.S.dollar.杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Mean= 120 /10= 12, median=10,andmode=10.Thedistributionisskewedtotheright,sothemeanisgreaterthanthemedianandmode.Generally,forpositivelyskeweddistributions,themodeislessthanthemedian,whichislessthanthemean.Inthiscase,themodeandmedianareequalbecausethenumberofobservationsissmall.Question24#4 523 5Youranswer:Cwascorrect!Thecoefficientofvariation,CV=standarddeviation/arithmeticmean,isacommonmeasureofrelativedispersion(risk).CVW=0.4/0.5=0.80;CVX=0.7/0.9=0.78;CVY=4.7/1 .2= 3. 92 andCVZ=5 .2/ 1.5=3.47.BecausealowerCVmeanslowerrelativerisk,SecurityXhasthelowestrelativeriskandSecurityYhasthehighestrelativerisk.Question25#4 52 36 Youranswer:Dwascorrect!TheSharpemeasureforaportfolioiscalculatedasthe(meanportfolioreturn?meanreturnontheriskfreeasset)/portfoliostandarddeviation.TheSharpemeasuresforthefourmutualfundsare:Mutualfund1=( 12? 5)/15=0.47Mutualfund2=(13?5)/18=0.44Mutualfund3=(15?5) /20 =0.50Mutualfund4=(18?5) /24 =0.54Assumingthatinvestorspreferreturnanddislikerisk,theyshouldpreferportfolioswithlargeSharperatiostothosewithsmallerratios.Thus,theinvestorshouldprefermutualfund4.Question 26 #4 523 7Youranswer:Bwascorrect!Subjectiveprobabilityisbasedonpersonaljudgment.Arandomvariableisaquantitywhoseoutcomesareuncertain.杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Interestexpense=9,900,8 36. 51×0.0 825 =$8 16, 819.01Yearendadjustment=8 16, 819.01?800,000=$ 16, 819.01Yearenddebt=$9,900,8 36. 51+$ 16, 819.01=$9,917 ,65 5. 52 Note:Sincethisisadiscountbond,weknowthevaluewillincreaseeachyear,sowereallydidn抰havetodoanycalculationstoanswerthisquestion.Question 66 #4 527 8Youranswer:Dwascorrect!Thereportedannualleaseexpenseforacapitalleaseisthedepreciationoftheassetvalueplustheannualinterestontheremainingleaseliability.Wemustusethelowerrate,theimplicitleaserateof8%,tocalculatethepresentvalueofthe10leasepayments,whichis $20 ,000.Theannualinterestiscalculatedusingthe8%rateandthe $20 ,000presentvalueoftheleaseliabilityattheinitiationofthelease.= $2, 000Interestexpense(nonoperatingexpense)=( $20 ,000)(0.08)=$1 ,60 0Totalreportedleaseexpense=$3 ,60 0Question67#4 527 9Youranswer:Bwascorrect!Taxbenefitsarerealizedifthelesseeisinalowtaxbracketandthelessorisinahightaxbracket.Anoperatingleaseallowsthelessortoretainthe(greater)taxbenefitsfromdepreciatingtheasset.Forexample,thelessorbenefitsfromusingaccelerateddepreciationonitstaxreturns.Question68#4 528 0Youranswer:Awascorrect!Operatingleasesareatypeofoffbalancesheetfinancing.Ananalystshouldcapitalizeoperatingleasestodevelopmorerepresentativeleverageratiosandtofacilitatecomparison ... 杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question35#4 52 46 Youranswer:Bwascorrect!whereristhenominalriskfreerate.Hence,ThenominalrateintheU.S.is5% =2+ 3.TheresultisthatUsing(1. 02) (1.03)?1=0.0506fortheU.S.nominalrateproducesaresultof4. 12% .Question 36 #4 524 7Youranswer:Cwascorrect!OpenmarketoperationsaretheU.S.FederalReserve抯mostoftenusedtoolforchangingthemoneysupply.Question37#4 524 8Youranswer:Dwascorrect!Thedemandforlaborisaderiveddemand.Whenthedemandforthefinalgoodorserviceincreases,thepriceofthatfinalgoodorserviceincreases.Thatincreaseinpricewillleadtothefirmemployingmoreoftheresourcesusedinproductionateachresourceprice,includinglabor.Question38#4 524 9Youranswer:Awascorrect!Intheshortrun,anincreaseinthemoneysupplywillincreaseaggregatedemand.Thenewshortrunequilibriumwillbeatahigherpricelevelandagreaterlevelofrealoutput(GDP).Question39#4 525 0Youranswer:Bwascorrect!杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Tofindthecovariance,wemusttakethecrossproductsofthedifferences.Question85#4 529 7Youranswer:Dwascorrect!Astopbuyorderisaconditionalmarketorderbywhichaninvestordirectsthepurchaseofastockifitrisestoacertainprice.Stopbuysareplacedabovethecurrentmarketprice.Limitorderscanhavemarketpriceasthelimit,usedwhenlackofliquidityisaconcern.Question 86 #4 529 8Youranswer:Dwascorrect!Theshortsellerhopesthatthecurrentpriceistoohighandhopesthatitwillfallinthefuture.However,notradingruleexiststhatrequirestheshortsellertosubsequentlyreplacetheborrowedstockatapricelowerthanthepriceatwhichheorshesoldthestock.Question87#4 529 9Youranswer:Bwascorrect!ThepriceweightedindexonDecember31 ,20 05equalsandonDecember31 ,20 06equalsTheoneyearholdingperiodreturnisYearDif.Stock1Dif.Stock2CrossProduct99400007??501?15?5杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！homeowner.Ifthehomeownerprepays,theholderofthebondhasreinvestmentrisk.Embeddedoptionsinbondsareinseparablefromtheunderlyingbondandtradewiththatbond.Question1 06 #45 327 Youranswer:Bwascorrect!Thecleanpriceofthebondisthequotedprice,89.14%ofparvalue,whichis$891.40.Question107#45 328 Youranswer:Dwascorrect!Resettinginterestratesmakesthebondless,notmore,susceptibletointerestratechanges.Question108#45 329 Youranswer:Dwascorrect!Whentheforeigncurrencyappreciates,eachforeigncurrencydenominatedcashflowbuysmoredomesticcurrencyunits梚ncreasingthedomesticcurrencyreturnfromtheinvestment.Theappreciationoftheforeignassetbenefitstheinvestoraswell.Question109#45331Youranswer:Dwascorrect!Forwardsaresubjecttodefaultrisk,butfuturesarenot.Forwardsareprivatecontracts,butfuturesareexchangetraded.Forwardsareindividualizedcontracts,butfuturesarestandardized.Question110#453 32 Youranswer:Cwascorrect!ChoiceAisincorrectbecausespeculatorsenterthefuturesmarketinpursuitofprofit,acceptingriskintheendeavor.杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Notethatthepriceisalwaysoneyearbeforethedividenddate.SolveforthePVof$10tobereceivedintwoyears.FV=10;N =2 I/Y=17;CPT→PV=$7.31.Question91#45303Youranswer:Dwascorrect!Theforecastyearendprice,P,is:Question 92 #45304Youranswer:Dwascorrect!Thisindustryappearstobeintherapidacceleratinggrowthphase.Thisphaseischaracterizedbythedevelopmentofnewproductsandrapiddemandgrowth.Thereislimitedcompetition,andsalesgrowthandprofitmarginsarehighandaccelerating.Question93#45305Youranswer:Awascorrect!Supplyanddemandaregovernedbymanyfactors,bothrationalandirrational.Question94#45307Youranswer:Bwascorrect!Specifictradingrulesrequiremuchsubjectivejudgment.杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question44#4 525 5Youranswer:Bwascorrect!Anaturalmonopolymayexistwheneconomiesofscalearegreat.Thelargeeconomiesofscalemakeitinefficienttohavemanysmallproducers.Question45#4 52 56 Youranswer:Bwascorrect!Extraordinaryitemsareunusualandinfrequentitemsthatarereportedseparately,netoftax揵elowtheline.?Question 46 #4 525 7Youranswer:Bwascorrect!Thisisthedirectmethod,whichstartsatthetopoftheincomestatementwithsalesandthenworkswiththeindividualcomponentsofnetincomedirectlyrelatedtocashflows.Question47#4 525 8Netsales+1 ,20 0Accountsreceivable(down)+ 25 Cashcollectedfromcustomers+1 ,22 5Costofgoodssold?nbsp; 65 0Inventory(up)?nbsp;100Accountspayable(up)+50Cashpaymentsforinputs?nbsp;700Cashinterestpaid?nbsp;45Cashinterestreceived+ 20 Cashflowfromoperations+$500杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！StandardIII(C)Suitability.Membersandcandidatesshouldcarefullyconsidertheneeds,circumstances,andobjectivesofclientsbeforetakinginvestmentaction.However,somemembersandcandidatesaremerelyexecutingspecificinstructionsforretailclients.Inthiscase,sinceWellsbelievesthetradeisunsuitable,Wellsshouldconfirmthattheclientisawaretheactionisunsuitablebeforeexecutingthetradeorrefrainfrommakingthetrade.Question5#4 52 16 Youranswer:Awascorrect!StandardI(C)Misrepresentation.JameshasactedinappropriatelyinaskingJonestoplagiarizethereportandmayhaveviolatedseveralStandards,includingStandardIV(C)ResponsibilitiesofSupervisors.However,hehasnotviolatedtheprohibitionagainstplagiarisminStandardI(C).Jones,ontheotherhand,evenifactingontherequestofhersupervisor,willviolateStandardI(C)Misrepresentation.Makingminorchangestoareportdoesnotmakeityourown.Question6#4 521 7Youranswer:Awascorrect!AccordingtoStandardII(B)MarketManipulation,membersandcandidatesshouldnotengageinanypracticethatwouldartificiallyinflatetradingvolumeordistortprices.However,thisStandarddoesnotprohibittransactionsdonefortaxpurposes.Inthiscase,therewasnointenttomisleadmarketparticipantsastothestockpriceofSafetyAirlines,andthetradeswereundertakentotakeadvantageofalegitimatetaxstrategy.ThustherehasbeennoviolationofStandardII(B)oranyotherStandard.Question7#4 521 8Youranswer:Dwascorrect!StandardI(B)IndependenceandObjectivityallowsinvestorpaidresearchbutrequiresthatmembersandcandidateslimitthetypeofcompensationtheyacceptforwritingaresearchreportsothatitisnotdependentontheconclusionsoftheresearchreport.Bestpracticeisforanalyststoonlyacceptaflatfeeforsuchcompanypaidresearchreports.Suchresearchshouldalsoincludecompletedisclosureofthenatureofthecompensationreceivedforwritingsuchareportsothatinvestorswillnotbemisledastotherelationshipbetweentheanalystandthecompany.杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Bwascorrect!Thecompanyboughtequipmentfor$ 120 ,whichwasacashoutflow.Question48#4 525 9Youranswer:Cwascorrect!Question49#45 26 0 Youranswer:Cwascorrect!Whenusingthedirectmethodofcalculatingoperatingcashflows,depreciationandamortizationarenot揳ddedback?(tonetincome)becausewedon抰beginwithnetincomeunderthedirectmethod.Depreciationandamortizationarenoncashchangesandarenotusedunderthedirectmethod.Theotherstatementsaretrue.Interestpaymentsondebtaffectcashflowfromoperations.Whenusingtheindirectmethod,ananalystshouldaddanylossesonsalesoffixedassetstonetincomesincetheyarenotoperatingcashflows.Question50#45 26 1 Youranswer:Dwascorrect!Inaperiodofrisingprices,LIFOresultsinhigherCOGS,lowertaxes,lowernetincome,lowerinventorybalances,lowerworkingcapital,andhighercashflowsduetolesstaxespaidout.Inafallingpriceenvironment,itisthereverse.Also,FIFOinventoryleadstooppositeresultsforbothrisingandfallingprices.Question51#45 26 2 Youranswer:Awascorrect!Paiddividend?5Saleofstock +27 5Retireddebt ?25 Financingcashflow+ 125 杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Thecircumstancesofthebankruptcydidnotinvolvefraudulentordeceitfulbusinessconduct,sothereforethereisnoviolationofStandardI(D)Misconduct.Hart抯bankruptcydoesnotcompromisehisprofessionalreputationortheintegrityoftheCFAdesignation.Question13#4 522 4Youranswer:Cwascorrect!UndertheCodeandStandards,Marshallhasanobligationtodisclosethatshereceivesspecialcompensationbasedontheamountofclienttradingvolume.StandardVI(A)DisclosureofConflictsrequiresmemberstodisclosetoclientsandprospectsallmattersthatcouldpotentiallyimpairthemember抯abilitytomakeinvestmentdecisionsthatare(andtogiveinvestmentadvicethatis)objectiveandunbiased.Question14#4 522 5Youranswer:Bwascorrect!StandardVI(A)DisclosureofConflicts.Matlockmustdisclose(1)specialrelationships梔irectorshipsandconsultancies, (2) investmentbanking,(3)underwritingandfinancialrelationships,(4)brokerdealermarketmakingactivities,and(5)materialbeneficialownership.ThefactthatMatlock抯sonworksforKingCompanyisnotaconflictrequiringdisclosuretoclientsandprospectssincehissonisnotamanagerofthefirm,inwhichcaseitcouldbe.Question15#4 52 26 Youranswer:Dwascorrect!UnderStandardIII(E)PreservationofConfidentiality,membersandcandidatesshouldmaintaintheconfidentialityofinformationreceivedinthecourseoftheirprofessionalservicerelatingtobothcurrentandformerclients.Inthecaseofillegalactivity,however,Reillymayhavealegalobligationtoreporttheactivity.Ideally,heshouldconsultwithhisemployerfirstaboutwhatactionshemayberequiredtotake.Ofthechoicesgiven,seekingtheadviceofoutsidecounselastowhetherhehassuchanobligationunderlocallawandwhethertheactivityisindeedillegalistheonepermittedundertheStandard.Question 16 #4 522 7Youranswer:Bwascorrect!杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Bwascorrect!Thecumulativeabsolutefrequencyofthefourthintervalis80,whichisthesumoftheabsolutefrequenciesfromthefirsttothefourthintervals.Question21#4 523 2Youranswer:Awascorrect!Inthissituation,thecoefficientofdetermination(R 2 )isthepercentageoftotalvariationinthedependentvariable(companysales)explainedbythevariationintheindependentvariable(industrysales).totalvariation(SST)=unexplainedvariation(SSE)+explainedvariation(SSR)So,thecoefficientofdeterminationcanbeexpressedas:AnR 2 of0 .25 indicatesthatthevariationinindustrychipsalesexplains25%ofvariationinsalesofTastyChips.Forasimpleregression(oneindependentvariable)thesquarerootoftheR 2 isthecorrelationbetweenthevariables,Question 22 #4 523 3Youranswer:Awascorrect!Theaverageannualcompoundgrowthrateiscalculatedas:[(1+0 .25 )(1?0 .25 )(1+0.30)(1?0.30)]0 .25 ?1=0. 961 1?1=?.0389or?.89%.Aninitial$10,000investmentwouldbeworth10,000(1 .25 )(0.75)(1.3)(0.7)=$8,531.Question23#4 523 4Youranswer:Dwascorrect!杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！The95%confidenceintervalis10%?1. 96( 4%)orfrom2. 16% to17.84%.Question31#4 524 2Youranswer:Awascorrect!Usingthestandardnormalprobabilitydistribution,,thechanceofgettingzeroorlessreturn(losingmoney)is1?0.97 72= 0. 022 8%or2 .28 %.Analternativeexplanation:theexpectedreturnis10%.Tolosemoneymeansthereturnmustfallbelowzero.Zeroisabouttwostandarddeviationstotheleftofthemean.50%ofthetime,areturnwillbebelowthemean,and2.5%oftheobservationsarebelowtwostandarddeviationsdown.About97.5%ofthetime,thereturnwillbeabovezero.Thus,onlyabouta 2. 5%chanceexistsofhavingavaluebelowzero.Question 32 #4 524 3Youranswer:Cwascorrect!Accordingtothecentrallimittheorem,thesamplemeanforlargesamplesizeswillbedistributednormallyregardlessofthedistributionoftheunderlyingpopulation.Question33#4 524 4Youranswer:Dwascorrect!Thecrowdingouteffectreferstoareductioninprivateborrowingandspendingasaresultofhigherinterestratesgeneratedbybudgetdeficitsthatarefinancedbyborrowingintheprivateloanablefundsmarket.Question34#4 524 5Youranswer:Awascorrect!Aggregatehoursmeasuresthetotalnumberofhoursworkedinayearbyallemployedpeople.Aggregatehourstakesaccountofboththelevelofemploymentandtheaverageworkweek,makingitsuperiortoeitherofthosemeasuresasanindicatoroftotallaborperformed.Totallaborcompensationisameasureofrealwageratesthatincludeswages,salaries,andemployerpaidbenefits.杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question88#45300Youranswer:Cwascorrect!Themarketvaluesoftheindexarecalculatedinthetablebelow.Question89#45301Youranswer:Awascorrect!Ifcapitalmarketsareweakformefficientandsemistrongformefficient,nopubliclyavailableinformationcanbeusedtoearnabnormal(riskadjusted)returns.Question90#453 02 Youranswer:Bwascorrect!Timeline=$0now;$0inyear1;$0inyear2;$1inyear3.December31 ,20 05牋SharePrice牋NumberofSharesOutstanding牋MarketValueStockA牋$10牋5,000牋$50,000StockB牋$40牋10,000牋$400,000StockC牋$50牋 12, 000牋 $60 0,000Total牋牋牋?1,050,000December31 ,20 06 牋SharePrice牋NumberofSharesOutstanding牋MarketValueStockA牋$155,000牋$75,000StockB牋$30牋10,000牋$300,000StockC牋 $25 牋 12, 000牋$300,000Total牋牋牋牋 $67 5,000杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！COGSFIFO =27 ,000?(1,400?1 ,20 0)=$ 26 , 800.Question 62 #4 527 3Youranswer:Bwascorrect!Capitalizingcoststendstosmoothearningsandreducesinvestmentcashflows.Itwillalsoincreasecashflowsfromoperationsandincreaseprofitabilityintheearlyyears.Question63#4 527 4Youranswer:Awascorrect!Question64#4 52 76 Youranswer:Awascorrect!Firstfindthecurrentratio:Next,usealgebratosolveforthelevelofcurrentassetsthatwouldsatisfyacurrentratioof 2. 4:X=1 ,20 0,000.1 ,20 0,000?1,000,000 =20 0,000socurrentassetswouldneedtoincreaseby $20 0,000.Dothesamethingforcurrentliabilities:X=4 16, 667 .Currentliabilitieswouldneedtodecreaseby500,000?4 16, 667 =$83,333.Question65#4 527 7Youranswer:Bwascorrect!PMT=800,000;FV=10,000,000;N=5;I/Y=8 .25 ;CPT→PV=$9,900,837杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question58#45 26 9 Youranswer:Bwascorrect!OnlyStatementIIIisfalse.Inperiodsofdecliningprices,LIFOinventoryvalueswillbehigher,leadingtohigherassetandequityvaluesandlowerdebttoequityratios.FIFOinventoryvaluesarepreferredbecausetheybetterapproximatereplacementcost.FIFOCOGS=LIFOCOGS?changeinLIFOreserve.COGS=purchases+beginninginventory?endinginventory,sothereisanegativerelationbetweenCOGSandmisstatementsofendinginventory.Question59#4 527 0Youranswer:Dwascorrect!Question60#4 527 1Youranswer:Dwascorrect!Generally,LIFOcausesCOGStobelargeandnetincometobesmall,soswitchingtoFIFOshouldreversethis,forcingCOGSdownandincomeup.Sotheanswershouldbepositive.TheLIFOreservewentup90?85=+5,soswitchingtoFIFOwilldecreaseCOGSby5,000,whichwillincreasegrossprofitby5,000andnetincomeby(5,000)(1?0 .28 )=+3 ,60 0.Question61#4 527 2Youranswer:Bwascorrect!COGSFIFO=COGSLIFO?(endingLIFOreserve?beginningLIFOreserve)杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！ChoiceBisincorrectbecausehedgerstradefuturestoreducesomepreexistingriskexposure.ChoiceDisincorrectsincetheclearinghousetakesnoactivepositioninthemarket,butinterposesitselfbetweenallpartiestoeverytransaction.Thus,theclearinghouseguaranteesthattradersinthefuturemarketwillhonortheirobligations.Question111#45334Youranswer:Bwascorrect!Calloptionsrepresentanobligationtoperforminthecaseoftheseller.Theowneroftheoption(buy)hastheright,butnotanobligation,topurchaseanunderlyinggoodataspecifiedpriceforaspecifiedtimefromtheseller.Question1 12 #45335Youranswer:Awascorrect!VT=ST+Max(0,X?ST)VT=$0.70+Max(0,0.75?0.70)=$0.75π=VT?V0?0.75?(S0+P0)=$0.75?(0 .67 +0.14)=?0. 06 Professor抯Note:Hereishowaputworks.Assumeashareofstockandaputonitat$75haveacombinedcostof$81.Ifthestockpriceatexpirationis$75orless,theputisexercisedandthestocksoldfor$75.Thelossis $6. Question113#453 36 Youranswer:Awascorrect!Inaforeigncurrencyswap,bothpartiesexchangefullinterestpayments.TheNewZealandcompanypays6%variableonUSD(USD60,000).TheU.S.companypays7%fixedonNZD(NZD140,000).Question114#45338杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question99#45315Youranswer:Bwascorrect!Aftertaxyield=pretaxyield(1?marginaltaxrate)=0. 06( 1?0 .28 )=0.0432or4. 32% .Question100#45317Youranswer:Dwascorrect!OfftherunTreasurysecuritiesrefertoolderTreasuryissues.PrefundedmunicipalbondsarebondscollateralizedbyanescrowofsecuritiesguaranteedbytheU.S.government.Revenuebondsaresupportedthroughrevenuesgeneratedfromprojectsthatarefundedwiththehelpoftheoriginalbondissue.Question101#45318Youranswer:Bwascorrect!ABEYof8%isequivalenttoa6monthdiscountrateof8 /2= 4%.r=(1.0748)0.50?1r=0.0 367 or7.34%onabondequivalentbasisQuestion1 02 #45 320 杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！CF0=?,000;CF1andCF 2 =1,900;CF3 =2, 500;CF4 =2, 000.Discount= 12% .ComputeIRR =23 .19%.Question 72 #4 528 4Youranswer:Awascorrect!Reliabilityreferstoinformationthatcanbeverified(measuredaccurately)andhasrepresentationalfaithfulness(itiswhatitisreportedtobe).Withoutthesetwocharacteristics,datacannotberelieduponinmakinginvestmentdecisions.Reliableinformationshouldalsoreflectneutralityinthatitdoesnotconsidertheeconomicimpactofthereportedinformation.So,ChoicesB,CandDareallcharacteristicsofreliability.Predictivevalueisnotacharacteristicofreliability;itisassociatedwiththerelevanceofaccountinginformation.Question73#4 528 5Youranswer:Awascorrect!Investorsshouldtakestepstoactuallydiscouragetheuseofthecorporatefundstopay揼reenmail.?Question74#4 52 86 Youranswer:Cwascorrect!CAPM=0.05+1.5(0. 06) =14%Question75#4 528 7Youranswer:Dwascorrect!Ifthefirmisallequityfinanced,thebreakevenpointforretainedearningsisThus,everydollarthatthefirmspendsontheircapitalbudgetwillbeequitydollars.Question 76 #4 528 8杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Dwascorrect!Question103#45 322 Youranswer:Awascorrect!(?(8)(?.005)+(50)(?.005 )2= +0.0400+0.00 125 =+0.04 125 ,orup4. 125 %.Thepricewouldthusbe$1,000×1.04 125 =$1,041 .25 .Question104#45 323 Youranswer:Bwascorrect!CreatingaCMOcanredistributetheprepaymentriskamongthetranches,butitdoesnotaltertheoverallprepaymentriskofamortgagepassthroughsecurity.CMOsarecreatedfromMBS.AlthoughMBSandcallablebondsbothhavereinvestmentrisk,thecashflowsfromanMBSaredifferentinthatmortgageloansareamortizing.Couponbondsarenotamortizing,andabondcallusuallyinvolvesthewholeissue,whereasprepaymentsareforpartoftheoutstandingprincipal.TheMBSandcouponbonddoshareprepaymentriskbecausethecalloptionbenefitstheissuer,orhomeowner,nottheinvestor.Question105#45 325 Youranswer:Dwascorrect!Aputprovisionallowstheinvestortoputthebondbacktotheissuerifinterestratesrise.Thus,aputoptionbenefits(andmaybeexercisedby)theholder,nottheissuer.Theotherstatementsaretrue.Interestratefloorsbenefittheholderbyprovidingalowerlimit(orminimum)ontheinterestratethebondholderwillreceive.Tounderstandwhytheprepaymentrightgrantedtoamortgageholderbenefitstheissuer,rememberthattheissuerhereisthehomeowner.Thebankactsasapassthroughfromthehomeownertotheownerofabondcollateralizedbytheloan.Therighttoprepayifinterestratesdecreaseisabenefittothe杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question95#45309Youranswer:Awascorrect!sopriceispositivelyrelatedtothegrowthrateandthedividend,andnegativelyrelatedtotherequiredreturn.ThegrowthrateispositivelyrelatedtoROEandtheretentionratio(g=RR×ROE).Professor抯Note:Startwiththepricingequationandholdallvariablesconstantexceptpricesandtheoneyouareinterestedin.Question 96 #45310Youranswer:Dwascorrect!Whenconstructingsamples,researchersmustbevarycarefulnottoincludejustsurvivingcompanies,mutualfunds,orinvestmentnewsletters.Sincesurvivorstendtobethosethathavedonewell(byskillorchance),samplesofmutualfundsthathavea10yeartrackrecords,forexample,willexhibitperformancehistorieswithupwardbias.Mutualfundcompaniesregularlydiscontinuefundswithpoorperformancehistoriesorrolltheirassetsintobetterperformingfunds.Therefore,ChoiceDiscorrect.Question97#453 12 Youranswer:Bwascorrect!Thepriceofabondchangesintheoppositedirectiontothechangeininterestrates.Longterm,lowcouponbondsaremoresensitivethanshorttermandhighcouponbonds.Pricesaremoresensitivetoratedecreasesthantorateincreases(durationrisesasyieldsfall).Question98#45313Youranswer:Cwascorrect!ThefriendisincorrectabouttheTIPS(thecouponrateisfixed,theparvalueisadjustedforinflation)andiscorrectaboutthebidaskspreadforontherunissues(ontherunissuesaremoreliquidandthushaveanarrowerbidaskspread).杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Aftertaxcashflowis[300,000 ?20 0,000 ?60 ,000?35,000](1?0.35)?34,919 +60 ,000= 28 ,331.Question118#453 42 Youranswer:Cwascorrect!Thefeemayactuallybesubstantialsince,inadditiontopayingthemanageroftheFOF,afeemustbepaidtoeachhedgefundwithintheFOF.Question119#45343Youranswer:Awascorrect!Openendfundsredeemexistingsharesorissuenewsharesinaccordancewithinvestordemand.Closedendfundsharesarefixedinnumberandtradeonexchangesasthoughtheywerecommonstock.Question 120 #45344Youranswer:Dwascorrect!Longcommoditiespositionswouldtendtohedgetheriskthatbondswoulddeclineinvaluebecauseofincreasesininflationorbecauseofhigherinterestratesduetoanincreaseintheoveralllevelofeconomicactivity.Sellingbondfutureswouldhedgeagainstrisingrates.Interestrateputsincreaseinvalueasratesfallandwouldnotprovideahedge.杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！StandardII(A)MaterialNonpublicInformationrequiresthatmembersandcandidateswhopossessmaterialnonpublicinformationnotactorcauseotherstoactontheinformation.Puttingthestockonarestrictedlist,refusingthetrade,orsharingtheinformationwithhissupervisor,areallpotentialviolationsofthisStandardsincetheyinvolveactingorcausingotherstoactonthenonpublicinformationhepossesses.DeanshouldseektohaveEastStreetmaketheinformationpublic.Ifpublicdisseminationisnotmade,heisnotallowedtoactontheinformation.Refusingtomakethetradehewasinstructedtomakewouldbe揳cting?ontheinformationinthiscase.Theobligationhereistotheintegrityoffinancialmarkets.Question17#4 522 8Youranswer:Cwascorrect!Afirmcanincludenoncompliantperformancedatafortheperiodjustpriortotheperiodofcompliantperformancedata,aslongasnononcompliantdataforperiodsafterJanuary1, 20 01isincluded,allnoncompliantdataareidentified,andthewaysinwhichthedataarenoncompliantaredisclosed.Firmsmustsupplyalistofcompositesandcompositedescriptionsonlytoclientsandprospectsthatrequestit.Firmsmustaddoneyearofcompliantperformanceinformationeachyearuntilatotaloftenyearsdataarereported.Question18#4 522 9Youranswer:Awascorrect!TheCFAInstitute抯GIPSrequirethat,toclaimcompliance,firmsmustpresentGIPScompliantperformanceinformationforaminimumoffiveyears,orsinceinceptionifinexistencelessthanfiveyears.Question19#4 523 0Youranswer:Bwascorrect!Thisprobleminvolvesdeterminingthepresentvalueofanannuityfollowedbyfindingthepresentvalueofalumpsum.EnterPMT=10,000,N=10,andI/Y=14.ComputePV= 52, 161 . 16. Thatisthepresentvalueofthe10yearannuity,4yearsfromtoday.Next,weneedtodiscountthatbacktopresentfor4yearstofindtheamountoftheinvestmenttoday.EnterFV= 52, 161 . 16, N=4,I/Y=14,PMT=0.ComputePV=30,883.59.Question20#4 523 1杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Dwascorrect!Asrandomlyselectedsecuritiesareaddedtoaportfolio,thediversifiable(unsystematic)riskdecreases,andtheexpectedlevelofnondiversifiable(systematic)riskremainsthesame.Question 82 #4 529 4Youranswer:Awascorrect!BasedontheCAPM,theportfolioshouldearn:E(R)=0.05+1.5(0.15?0.05)=0 .20 or20%.Onariskadjustedbasis,thisportfolioliesontheSMLandisthusearningtheproperriskadjustedrateofreturn.Question83#4 529 5Youranswer:Cwascorrect!Theseethicalissuesfallundertheheadingofindividualinvestorconcerns.Someinvestorswouldexcludethesetypesofinvestmentsduetotheirownpersonalpreferences.Question84#4 52 96 Youranswer:Awascorrect!Tofindthecorrelationcoefficientbetweenthetwostocks,wemustfirstfindthestandarddeviationsofeachstockandthenfindthecovariancebetweenthestocks.Thecorrelationcoefficientisthecovariancedividedbytheproductofthestandarddeviations.YearStock1(xavg) 2 Stock2(xavg) 2 99 12 16 500015490 25 01? 121 10 25 avg=8sum=1 86 avg=5sum=50杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Thelawofdiminishingreturnsstatesthatatsomepoint,asmoreofaresourceisusedinaproductionprocess,holdingotherinputsconstant,outputincreasesatadecreasingrate.ThisaccountsfortheupwardslopeoftheSRMCcurvebeyondthatpoint.Returnstoscaledeterminetheshapeofthelongruncostcurves.Question40#4 525 1Youranswer:Bwascorrect!Underperfectcompetition,eachfirmfacesaflatdemandcurve.Thismeansthepriceisconstantandthemarginalrevenuelineisflat.AcompanywillcontinuetoproduceaslongasMR>MC,sothecompetitivecompanywillproduceaslongasP>MC.ItwillstopwhenMC=MR=P.Question41#4 525 2Youranswer:Cwascorrect!Intheshortrun,thedecisiontooperateisbasedonwhetherpricecoversaveragevariablecosts.Inthelongrun,averagefixedcostsmustbeconsideredaswell.Sunkcostsarehistoricalcosts.Sinkingfundsareestablishedtoretirelongtermdebt.Themarginalrevenuefromsellinganadditionalunitofoutputmustbeatleastasgreatasitsmarginalcostofproduction.Question 42 #4 525 3Youranswer:Awascorrect!ToconvertMexicanpesopricestoU.S.dollars,divideby 12. ShoesarecheaperinMexicoversustheU.S.(40versus50);soaretoys(3versus4)andhats(8versus10).Therefore,theU.S.shouldimportallthreegoodsfromMexico.Question43#4 525 4Youranswer:Cwascorrect!TheAUDdepreciatedbecauseitnowtakesmoreAUDtobyaUSD.Acrossrateistheexchangeratebetweentwocountriesderivedfromtheirexchangerateswithathirdcountry.Directexchangeratesdon抰necessarilyinvolvetheU.S.dollar.杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Mean= 120 /10= 12, median=10,andmode=10.Thedistributionisskewedtotheright,sothemeanisgreaterthanthemedianandmode.Generally,forpositivelyskeweddistributions,themodeislessthanthemedian,whichislessthanthemean.Inthiscase,themodeandmedianareequalbecausethenumberofobservationsissmall.Question24#4 523 5Youranswer:Cwascorrect!Thecoefficientofvariation,CV=standarddeviation/arithmeticmean,isacommonmeasureofrelativedispersion(risk).CVW=0.4/0.5=0.80;CVX=0.7/0.9=0.78;CVY=4.7/1 .2= 3. 92 andCVZ=5 .2/ 1.5=3.47.BecausealowerCVmeanslowerrelativerisk,SecurityXhasthelowestrelativeriskandSecurityYhasthehighestrelativerisk.Question25#4 52 36 Youranswer:Dwascorrect!TheSharpemeasureforaportfolioiscalculatedasthe(meanportfolioreturn?meanreturnontheriskfreeasset)/portfoliostandarddeviation.TheSharpemeasuresforthefourmutualfundsare:Mutualfund1=( 12? 5)/15=0.47Mutualfund2=(13?5)/18=0.44Mutualfund3=(15?5) /20 =0.50Mutualfund4=(18?5) /24 =0.54Assumingthatinvestorspreferreturnanddislikerisk,theyshouldpreferportfolioswithlargeSharperatiostothosewithsmallerratios.Thus,theinvestorshouldprefermutualfund4.Question 26 #4 523 7Youranswer:Bwascorrect!Subjectiveprobabilityisbasedonpersonaljudgment.Arandomvariableisaquantitywhoseoutcomesareuncertain.杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Interestexpense=9,900,8 36. 51×0.0 825 =$8 16, 819.01Yearendadjustment=8 16, 819.01?800,000=$ 16, 819.01Yearenddebt=$9,900,8 36. 51+$ 16, 819.01=$9,917 ,65 5. 52 Note:Sincethisisadiscountbond,weknowthevaluewillincreaseeachyear,sowereallydidn抰havetodoanycalculationstoanswerthisquestion.Question 66 #4 527 8Youranswer:Dwascorrect!Thereportedannualleaseexpenseforacapitalleaseisthedepreciationoftheassetvalueplustheannualinterestontheremainingleaseliability.Wemustusethelowerrate,theimplicitleaserateof8%,tocalculatethepresentvalueofthe10leasepayments,whichis $20 ,000.Theannualinterestiscalculatedusingthe8%rateandthe $20 ,000presentvalueoftheleaseliabilityattheinitiationofthelease.= $2, 000Interestexpense(nonoperatingexpense)=( $20 ,000)(0.08)=$1 ,60 0Totalreportedleaseexpense=$3 ,60 0Question67#4 527 9Youranswer:Bwascorrect!Taxbenefitsarerealizedifthelesseeisinalowtaxbracketandthelessorisinahightaxbracket.Anoperatingleaseallowsthelessortoretainthe(greater)taxbenefitsfromdepreciatingtheasset.Forexample,thelessorbenefitsfromusingaccelerateddepreciationonitstaxreturns.Question68#4 528 0Youranswer:Awascorrect!Operatingleasesareatypeofoffbalancesheetfinancing.Ananalystshouldcapitalizeoperatingleasestodevelopmorerepresentativeleverageratiosandtofacilitatecomparison ... 杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question35#4 52 46 Youranswer:Bwascorrect!whereristhenominalriskfreerate.Hence,ThenominalrateintheU.S.is5% =2+ 3.TheresultisthatUsing(1. 02) (1.03)?1=0.0506fortheU.S.nominalrateproducesaresultof4. 12% .Question 36 #4 524 7Youranswer:Cwascorrect!OpenmarketoperationsaretheU.S.FederalReserve抯mostoftenusedtoolforchangingthemoneysupply.Question37#4 524 8Youranswer:Dwascorrect!Thedemandforlaborisaderiveddemand.Whenthedemandforthefinalgoodorserviceincreases,thepriceofthatfinalgoodorserviceincreases.Thatincreaseinpricewillleadtothefirmemployingmoreoftheresourcesusedinproductionateachresourceprice,includinglabor.Question38#4 524 9Youranswer:Awascorrect!Intheshortrun,anincreaseinthemoneysupplywillincreaseaggregatedemand.Thenewshortrunequilibriumwillbeatahigherpricelevelandagreaterlevelofrealoutput(GDP).Question39#4 525 0Youranswer:Bwascorrect!杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Tofindthecovariance,wemusttakethecrossproductsofthedifferences.Question85#4 529 7Youranswer:Dwascorrect!Astopbuyorderisaconditionalmarketorderbywhichaninvestordirectsthepurchaseofastockifitrisestoacertainprice.Stopbuysareplacedabovethecurrentmarketprice.Limitorderscanhavemarketpriceasthelimit,usedwhenlackofliquidityisaconcern.Question 86 #4 529 8Youranswer:Dwascorrect!Theshortsellerhopesthatthecurrentpriceistoohighandhopesthatitwillfallinthefuture.However,notradingruleexiststhatrequirestheshortsellertosubsequentlyreplacetheborrowedstockatapricelowerthanthepriceatwhichheorshesoldthestock.Question87#4 529 9Youranswer:Bwascorrect!ThepriceweightedindexonDecember31 ,20 05equalsandonDecember31 ,20 06equalsTheoneyearholdingperiodreturnisYearDif.Stock1Dif.Stock2CrossProduct99400007??501?15?5杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！homeowner.Ifthehomeownerprepays,theholderofthebondhasreinvestmentrisk.Embeddedoptionsinbondsareinseparablefromtheunderlyingbondandtradewiththatbond.Question1 06 #45 327 Youranswer:Bwascorrect!Thecleanpriceofthebondisthequotedprice,89.14%ofparvalue,whichis$891.40.Question107#45 328 Youranswer:Dwascorrect!Resettinginterestratesmakesthebondless,notmore,susceptibletointerestratechanges.Question108#45 329 Youranswer:Dwascorrect!Whentheforeigncurrencyappreciates,eachforeigncurrencydenominatedcashflowbuysmoredomesticcurrencyunits梚ncreasingthedomesticcurrencyreturnfromtheinvestment.Theappreciationoftheforeignassetbenefitstheinvestoraswell.Question109#45331Youranswer:Dwascorrect!Forwardsaresubjecttodefaultrisk,butfuturesarenot.Forwardsareprivatecontracts,butfuturesareexchangetraded.Forwardsareindividualizedcontracts,butfuturesarestandardized.Question110#453 32 Youranswer:Cwascorrect!ChoiceAisincorrectbecausespeculatorsenterthefuturesmarketinpursuitofprofit,acceptingriskintheendeavor.杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Notethatthepriceisalwaysoneyearbeforethedividenddate.SolveforthePVof$10tobereceivedintwoyears.FV=10;N =2 I/Y=17;CPT→PV=$7.31.Question91#45303Youranswer:Dwascorrect!Theforecastyearendprice,P,is:Question 92 #45304Youranswer:Dwascorrect!Thisindustryappearstobeintherapidacceleratinggrowthphase.Thisphaseischaracterizedbythedevelopmentofnewproductsandrapiddemandgrowth.Thereislimitedcompetition,andsalesgrowthandprofitmarginsarehighandaccelerating.Question93#45305Youranswer:Awascorrect!Supplyanddemandaregovernedbymanyfactors,bothrationalandirrational.Question94#45307Youranswer:Bwascorrect!Specifictradingrulesrequiremuchsubjectivejudgment.杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question44#4 525 5Youranswer:Bwascorrect!Anaturalmonopolymayexistwheneconomiesofscalearegreat.Thelargeeconomiesofscalemakeitinefficienttohavemanysmallproducers.Question45#4 52 56 Youranswer:Bwascorrect!Extraordinaryitemsareunusualandinfrequentitemsthatarereportedseparately,netoftax揵elowtheline.?Question 46 #4 525 7Youranswer:Bwascorrect!Thisisthedirectmethod,whichstartsatthetopoftheincomestatementwithsalesandthenworkswiththeindividualcomponentsofnetincomedirectlyrelatedtocashflows.Question47#4 525 8Netsales+1 ,20 0Accountsreceivable(down)+ 25 Cashcollectedfromcustomers+1 ,22 5Costofgoodssold?nbsp; 65 0Inventory(up)?nbsp;100Accountspayable(up)+50Cashpaymentsforinputs?nbsp;700Cashinterestpaid?nbsp;45Cashinterestreceived+ 20 Cashflowfromoperations+$500杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！StandardIII(C)Suitability.Membersandcandidatesshouldcarefullyconsidertheneeds,circumstances,andobjectivesofclientsbeforetakinginvestmentaction.However,somemembersandcandidatesaremerelyexecutingspecificinstructionsforretailclients.Inthiscase,sinceWellsbelievesthetradeisunsuitable,Wellsshouldconfirmthattheclientisawaretheactionisunsuitablebeforeexecutingthetradeorrefrainfrommakingthetrade.Question5#4 52 16 Youranswer:Awascorrect!StandardI(C)Misrepresentation.JameshasactedinappropriatelyinaskingJonestoplagiarizethereportandmayhaveviolatedseveralStandards,includingStandardIV(C)ResponsibilitiesofSupervisors.However,hehasnotviolatedtheprohibitionagainstplagiarisminStandardI(C).Jones,ontheotherhand,evenifactingontherequestofhersupervisor,willviolateStandardI(C)Misrepresentation.Makingminorchangestoareportdoesnotmakeityourown.Question6#4 521 7Youranswer:Awascorrect!AccordingtoStandardII(B)MarketManipulation,membersandcandidatesshouldnotengageinanypracticethatwouldartificiallyinflatetradingvolumeordistortprices.However,thisStandarddoesnotprohibittransactionsdonefortaxpurposes.Inthiscase,therewasnointenttomisleadmarketparticipantsastothestockpriceofSafetyAirlines,andthetradeswereundertakentotakeadvantageofalegitimatetaxstrategy.ThustherehasbeennoviolationofStandardII(B)oranyotherStandard.Question7#4 521 8Youranswer:Dwascorrect!StandardI(B)IndependenceandObjectivityallowsinvestorpaidresearchbutrequiresthatmembersandcandidateslimitthetypeofcompensationtheyacceptforwritingaresearchreportsothatitisnotdependentontheconclusionsoftheresearchreport.Bestpracticeisforanalyststoonlyacceptaflatfeeforsuchcompanypaidresearchreports.Suchresearchshouldalsoincludecompletedisclosureofthenatureofthecompensationreceivedforwritingsuchareportsothatinvestorswillnotbemisledastotherelationshipbetweentheanalystandthecompany.杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Bwascorrect!Thecompanyboughtequipmentfor$ 120 ,whichwasacashoutflow.Question48#4 525 9Youranswer:Cwascorrect!Question49#45 26 0 Youranswer:Cwascorrect!Whenusingthedirectmethodofcalculatingoperatingcashflows,depreciationandamortizationarenot揳ddedback?(tonetincome)becausewedon抰beginwithnetincomeunderthedirectmethod.Depreciationandamortizationarenoncashchangesandarenotusedunderthedirectmethod.Theotherstatementsaretrue.Interestpaymentsondebtaffectcashflowfromoperations.Whenusingtheindirectmethod,ananalystshouldaddanylossesonsalesoffixedassetstonetincomesincetheyarenotoperatingcashflows.Question50#45 26 1 Youranswer:Dwascorrect!Inaperiodofrisingprices,LIFOresultsinhigherCOGS,lowertaxes,lowernetincome,lowerinventorybalances,lowerworkingcapital,andhighercashflowsduetolesstaxespaidout.Inafallingpriceenvironment,itisthereverse.Also,FIFOinventoryleadstooppositeresultsforbothrisingandfallingprices.Question51#45 26 2 Youranswer:Awascorrect!Paiddividend?5Saleofstock +27 5Retireddebt ?25 Financingcashflow+ 125 杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Thecircumstancesofthebankruptcydidnotinvolvefraudulentordeceitfulbusinessconduct,sothereforethereisnoviolationofStandardI(D)Misconduct.Hart抯bankruptcydoesnotcompromisehisprofessionalreputationortheintegrityoftheCFAdesignation.Question13#4 522 4Youranswer:Cwascorrect!UndertheCodeandStandards,Marshallhasanobligationtodisclosethatshereceivesspecialcompensationbasedontheamountofclienttradingvolume.StandardVI(A)DisclosureofConflictsrequiresmemberstodisclosetoclientsandprospectsallmattersthatcouldpotentiallyimpairthemember抯abilitytomakeinvestmentdecisionsthatare(andtogiveinvestmentadvicethatis)objectiveandunbiased.Question14#4 522 5Youranswer:Bwascorrect!StandardVI(A)DisclosureofConflicts.Matlockmustdisclose(1)specialrelationships梔irectorshipsandconsultancies, (2) investmentbanking,(3)underwritingandfinancialrelationships,(4)brokerdealermarketmakingactivities,and(5)materialbeneficialownership.ThefactthatMatlock抯sonworksforKingCompanyisnotaconflictrequiringdisclosuretoclientsandprospectssincehissonisnotamanagerofthefirm,inwhichcaseitcouldbe.Question15#4 52 26 Youranswer:Dwascorrect!UnderStandardIII(E)PreservationofConfidentiality,membersandcandidatesshouldmaintaintheconfidentialityofinformationreceivedinthecourseoftheirprofessionalservicerelatingtobothcurrentandformerclients.Inthecaseofillegalactivity,however,Reillymayhavealegalobligationtoreporttheactivity.Ideally,heshouldconsultwithhisemployerfirstaboutwhatactionshemayberequiredtotake.Ofthechoicesgiven,seekingtheadviceofoutsidecounselastowhetherhehassuchanobligationunderlocallawandwhethertheactivityisindeedillegalistheonepermittedundertheStandard.Question 16 #4 522 7Youranswer:Bwascorrect!杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Bwascorrect!Thecumulativeabsolutefrequencyofthefourthintervalis80,whichisthesumoftheabsolutefrequenciesfromthefirsttothefourthintervals.Question21#4 523 2Youranswer:Awascorrect!Inthissituation,thecoefficientofdetermination(R 2 )isthepercentageoftotalvariationinthedependentvariable(companysales)explainedbythevariationintheindependentvariable(industrysales).totalvariation(SST)=unexplainedvariation(SSE)+explainedvariation(SSR)So,thecoefficientofdeterminationcanbeexpressedas:AnR 2 of0 .25 indicatesthatthevariationinindustrychipsalesexplains25%ofvariationinsalesofTastyChips.Forasimpleregression(oneindependentvariable)thesquarerootoftheR 2 isthecorrelationbetweenthevariables,Question 22 #4 523 3Youranswer:Awascorrect!Theaverageannualcompoundgrowthrateiscalculatedas:[(1+0 .25 )(1?0 .25 )(1+0.30)(1?0.30)]0 .25 ?1=0. 961 1?1=?.0389or?.89%.Aninitial$10,000investmentwouldbeworth10,000(1 .25 )(0.75)(1.3)(0.7)=$8,531.Question23#4 523 4Youranswer:Dwascorrect!杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！The95%confidenceintervalis10%?1. 96( 4%)orfrom2. 16% to17.84%.Question31#4 524 2Youranswer:Awascorrect!Usingthestandardnormalprobabilitydistribution,,thechanceofgettingzeroorlessreturn(losingmoney)is1?0.97 72= 0. 022 8%or2 .28 %.Analternativeexplanation:theexpectedreturnis10%.Tolosemoneymeansthereturnmustfallbelowzero.Zeroisabouttwostandarddeviationstotheleftofthemean.50%ofthetime,areturnwillbebelowthemean,and2.5%oftheobservationsarebelowtwostandarddeviationsdown.About97.5%ofthetime,thereturnwillbeabovezero.Thus,onlyabouta 2. 5%chanceexistsofhavingavaluebelowzero.Question 32 #4 524 3Youranswer:Cwascorrect!Accordingtothecentrallimittheorem,thesamplemeanforlargesamplesizeswillbedistributednormallyregardlessofthedistributionoftheunderlyingpopulation.Question33#4 524 4Youranswer:Dwascorrect!Thecrowdingouteffectreferstoareductioninprivateborrowingandspendingasaresultofhigherinterestratesgeneratedbybudgetdeficitsthatarefinancedbyborrowingintheprivateloanablefundsmarket.Question34#4 524 5Youranswer:Awascorrect!Aggregatehoursmeasuresthetotalnumberofhoursworkedinayearbyallemployedpeople.Aggregatehourstakesaccountofboththelevelofemploymentandtheaverageworkweek,makingitsuperiortoeitherofthosemeasuresasanindicatoroftotallaborperformed.Totallaborcompensationisameasureofrealwageratesthatincludeswages,salaries,andemployerpaidbenefits.杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question88#45300Youranswer:Cwascorrect!Themarketvaluesoftheindexarecalculatedinthetablebelow.Question89#45301Youranswer:Awascorrect!Ifcapitalmarketsareweakformefficientandsemistrongformefficient,nopubliclyavailableinformationcanbeusedtoearnabnormal(riskadjusted)returns.Question90#453 02 Youranswer:Bwascorrect!Timeline=$0now;$0inyear1;$0inyear2;$1inyear3.December31 ,20 05牋SharePrice牋NumberofSharesOutstanding牋MarketValueStockA牋$10牋5,000牋$50,000StockB牋$40牋10,000牋$400,000StockC牋$50牋 12, 000牋 $60 0,000Total牋牋牋?1,050,000December31 ,20 06 牋SharePrice牋NumberofSharesOutstanding牋MarketValueStockA牋$155,000牋$75,000StockB牋$30牋10,000牋$300,000StockC牋 $25 牋 12, 000牋$300,000Total牋牋牋牋 $67 5,000杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！COGSFIFO =27 ,000?(1,400?1 ,20 0)=$ 26 , 800.Question 62 #4 527 3Youranswer:Bwascorrect!Capitalizingcoststendstosmoothearningsandreducesinvestmentcashflows.Itwillalsoincreasecashflowsfromoperationsandincreaseprofitabilityintheearlyyears.Question63#4 527 4Youranswer:Awascorrect!Question64#4 52 76 Youranswer:Awascorrect!Firstfindthecurrentratio:Next,usealgebratosolveforthelevelofcurrentassetsthatwouldsatisfyacurrentratioof 2. 4:X=1 ,20 0,000.1 ,20 0,000?1,000,000 =20 0,000socurrentassetswouldneedtoincreaseby $20 0,000.Dothesamethingforcurrentliabilities:X=4 16, 667 .Currentliabilitieswouldneedtodecreaseby500,000?4 16, 667 =$83,333.Question65#4 527 7Youranswer:Bwascorrect!PMT=800,000;FV=10,000,000;N=5;I/Y=8 .25 ;CPT→PV=$9,900,837杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question58#45 26 9 Youranswer:Bwascorrect!OnlyStatementIIIisfalse.Inperiodsofdecliningprices,LIFOinventoryvalueswillbehigher,leadingtohigherassetandequityvaluesandlowerdebttoequityratios.FIFOinventoryvaluesarepreferredbecausetheybetterapproximatereplacementcost.FIFOCOGS=LIFOCOGS?changeinLIFOreserve.COGS=purchases+beginninginventory?endinginventory,sothereisanegativerelationbetweenCOGSandmisstatementsofendinginventory.Question59#4 527 0Youranswer:Dwascorrect!Question60#4 527 1Youranswer:Dwascorrect!Generally,LIFOcausesCOGStobelargeandnetincometobesmall,soswitchingtoFIFOshouldreversethis,forcingCOGSdownandincomeup.Sotheanswershouldbepositive.TheLIFOreservewentup90?85=+5,soswitchingtoFIFOwilldecreaseCOGSby5,000,whichwillincreasegrossprofitby5,000andnetincomeby(5,000)(1?0 .28 )=+3 ,60 0.Question61#4 527 2Youranswer:Bwascorrect!COGSFIFO=COGSLIFO?(endingLIFOreserve?beginningLIFOreserve)杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！ChoiceBisincorrectbecausehedgerstradefuturestoreducesomepreexistingriskexposure.ChoiceDisincorrectsincetheclearinghousetakesnoactivepositioninthemarket,butinterposesitselfbetweenallpartiestoeverytransaction.Thus,theclearinghouseguaranteesthattradersinthefuturemarketwillhonortheirobligations.Question111#45334Youranswer:Bwascorrect!Calloptionsrepresentanobligationtoperforminthecaseoftheseller.Theowneroftheoption(buy)hastheright,butnotanobligation,topurchaseanunderlyinggoodataspecifiedpriceforaspecifiedtimefromtheseller.Question1 12 #45335Youranswer:Awascorrect!VT=ST+Max(0,X?ST)VT=$0.70+Max(0,0.75?0.70)=$0.75π=VT?V0?0.75?(S0+P0)=$0.75?(0 .67 +0.14)=?0. 06 Professor抯Note:Hereishowaputworks.Assumeashareofstockandaputonitat$75haveacombinedcostof$81.Ifthestockpriceatexpirationis$75orless,theputisexercisedandthestocksoldfor$75.Thelossis $6. Question113#453 36 Youranswer:Awascorrect!Inaforeigncurrencyswap,bothpartiesexchangefullinterestpayments.TheNewZealandcompanypays6%variableonUSD(USD60,000).TheU.S.companypays7%fixedonNZD(NZD140,000).Question114#45338杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question99#45315Youranswer:Bwascorrect!Aftertaxyield=pretaxyield(1?marginaltaxrate)=0. 06( 1?0 .28 )=0.0432or4. 32% .Question100#45317Youranswer:Dwascorrect!OfftherunTreasurysecuritiesrefertoolderTreasuryissues.PrefundedmunicipalbondsarebondscollateralizedbyanescrowofsecuritiesguaranteedbytheU.S.government.Revenuebondsaresupportedthroughrevenuesgeneratedfromprojectsthatarefundedwiththehelpoftheoriginalbondissue.Question101#45318Youranswer:Bwascorrect!ABEYof8%isequivalenttoa6monthdiscountrateof8 /2= 4%.r=(1.0748)0.50?1r=0.0 367 or7.34%onabondequivalentbasisQuestion1 02 #45 320 杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！CF0=?,000;CF1andCF 2 =1,900;CF3 =2, 500;CF4 =2, 000.Discount= 12% .ComputeIRR =23 .19%.Question 72 #4 528 4Youranswer:Awascorrect!Reliabilityreferstoinformationthatcanbeverified(measuredaccurately)andhasrepresentationalfaithfulness(itiswhatitisreportedtobe).Withoutthesetwocharacteristics,datacannotberelieduponinmakinginvestmentdecisions.Reliableinformationshouldalsoreflectneutralityinthatitdoesnotconsidertheeconomicimpactofthereportedinformation.So,ChoicesB,CandDareallcharacteristicsofreliability.Predictivevalueisnotacharacteristicofreliability;itisassociatedwiththerelevanceofaccountinginformation.Question73#4 528 5Youranswer:Awascorrect!Investorsshouldtakestepstoactuallydiscouragetheuseofthecorporatefundstopay揼reenmail.?Question74#4 52 86 Youranswer:Cwascorrect!CAPM=0.05+1.5(0. 06) =14%Question75#4 528 7Youranswer:Dwascorrect!Ifthefirmisallequityfinanced,thebreakevenpointforretainedearningsisThus,everydollarthatthefirmspendsontheircapitalbudgetwillbeequitydollars.Question 76 #4 528 8杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Dwascorrect!Question103#45 322 Youranswer:Awascorrect!(?(8)(?.005)+(50)(?.005 )2= +0.0400+0.00 125 =+0.04 125 ,orup4. 125 %.Thepricewouldthusbe$1,000×1.04 125 =$1,041 .25 .Question104#45 323 Youranswer:Bwascorrect!CreatingaCMOcanredistributetheprepaymentriskamongthetranches,butitdoesnotaltertheoverallprepaymentriskofamortgagepassthroughsecurity.CMOsarecreatedfromMBS.AlthoughMBSandcallablebondsbothhavereinvestmentrisk,thecashflowsfromanMBSaredifferentinthatmortgageloansareamortizing.Couponbondsarenotamortizing,andabondcallusuallyinvolvesthewholeissue,whereasprepaymentsareforpartoftheoutstandingprincipal.TheMBSandcouponbonddoshareprepaymentriskbecausethecalloptionbenefitstheissuer,orhomeowner,nottheinvestor.Question105#45 325 Youranswer:Dwascorrect!Aputprovisionallowstheinvestortoputthebondbacktotheissuerifinterestratesrise.Thus,aputoptionbenefits(andmaybeexercisedby)theholder,nottheissuer.Theotherstatementsaretrue.Interestratefloorsbenefittheholderbyprovidingalowerlimit(orminimum)ontheinterestratethebondholderwillreceive.Tounderstandwhytheprepaymentrightgrantedtoamortgageholderbenefitstheissuer,rememberthattheissuerhereisthehomeowner.Thebankactsasapassthroughfromthehomeownertotheownerofabondcollateralizedbytheloan.Therighttoprepayifinterestratesdecreaseisabenefittothe杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question95#45309Youranswer:Awascorrect!sopriceispositivelyrelatedtothegrowthrateandthedividend,andnegativelyrelatedtotherequiredreturn.ThegrowthrateispositivelyrelatedtoROEandtheretentionratio(g=RR×ROE).Professor抯Note:Startwiththepricingequationandholdallvariablesconstantexceptpricesandtheoneyouareinterestedin.Question 96 #45310Youranswer:Dwascorrect!Whenconstructingsamples,researchersmustbevarycarefulnottoincludejustsurvivingcompanies,mutualfunds,orinvestmentnewsletters.Sincesurvivorstendtobethosethathavedonewell(byskillorchance),samplesofmutualfundsthathavea10yeartrackrecords,forexample,willexhibitperformancehistorieswithupwardbias.Mutualfundcompaniesregularlydiscontinuefundswithpoorperformancehistoriesorrolltheirassetsintobetterperformingfunds.Therefore,ChoiceDiscorrect.Question97#453 12 Youranswer:Bwascorrect!Thepriceofabondchangesintheoppositedirectiontothechangeininterestrates.Longterm,lowcouponbondsaremoresensitivethanshorttermandhighcouponbonds.Pricesaremoresensitivetoratedecreasesthantorateincreases(durationrisesasyieldsfall).Question98#45313Youranswer:Cwascorrect!ThefriendisincorrectabouttheTIPS(thecouponrateisfixed,theparvalueisadjustedforinflation)andiscorrectaboutthebidaskspreadforontherunissues(ontherunissuesaremoreliquidandthushaveanarrowerbidaskspread).杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Aftertaxcashflowis[300,000 ?20 0,000 ?60 ,000?35,000](1?0.35)?34,919 +60 ,000= 28 ,331.Question118#453 42 Youranswer:Cwascorrect!Thefeemayactuallybesubstantialsince,inadditiontopayingthemanageroftheFOF,afeemustbepaidtoeachhedgefundwithintheFOF.Question119#45343Youranswer:Awascorrect!Openendfundsredeemexistingsharesorissuenewsharesinaccordancewithinvestordemand.Closedendfundsharesarefixedinnumberandtradeonexchangesasthoughtheywerecommonstock.Question 120 #45344Youranswer:Dwascorrect!Longcommoditiespositionswouldtendtohedgetheriskthatbondswoulddeclineinvaluebecauseofincreasesininflationorbecauseofhigherinterestratesduetoanincreaseintheoveralllevelofeconomicactivity.Sellingbondfutureswouldhedgeagainstrisingrates.Interestrateputsincreaseinvalueasratesfallandwouldnotprovideahedge.杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！StandardII(A)MaterialNonpublicInformationrequiresthatmembersandcandidateswhopossessmaterialnonpublicinformationnotactorcauseotherstoactontheinformation.Puttingthestockonarestrictedlist,refusingthetrade,orsharingtheinformationwithhissupervisor,areallpotentialviolationsofthisStandardsincetheyinvolveactingorcausingotherstoactonthenonpublicinformationhepossesses.DeanshouldseektohaveEastStreetmaketheinformationpublic.Ifpublicdisseminationisnotmade,heisnotallowedtoactontheinformation.Refusingtomakethetradehewasinstructedtomakewouldbe揳cting?ontheinformationinthiscase.Theobligationhereistotheintegrityoffinancialmarkets.Question17#4 522 8Youranswer:Cwascorrect!Afirmcanincludenoncompliantperformancedatafortheperiodjustpriortotheperiodofcompliantperformancedata,aslongasnononcompliantdataforperiodsafterJanuary1, 20 01isincluded,allnoncompliantdataareidentified,andthewaysinwhichthedataarenoncompliantaredisclosed.Firmsmustsupplyalistofcompositesandcompositedescriptionsonlytoclientsandprospectsthatrequestit.Firmsmustaddoneyearofcompliantperformanceinformationeachyearuntilatotaloftenyearsdataarereported.Question18#4 522 9Youranswer:Awascorrect!TheCFAInstitute抯GIPSrequirethat,toclaimcompliance,firmsmustpresentGIPScompliantperformanceinformationforaminimumoffiveyears,orsinceinceptionifinexistencelessthanfiveyears.Question19#4 523 0Youranswer:Bwascorrect!Thisprobleminvolvesdeterminingthepresentvalueofanannuityfollowedbyfindingthepresentvalueofalumpsum.EnterPMT=10,000,N=10,andI/Y=14.ComputePV= 52, 161 . 16. Thatisthepresentvalueofthe10yearannuity,4yearsfromtoday.Next,weneedtodiscountthatbacktopresentfor4yearstofindtheamountoftheinvestmenttoday.EnterFV= 52, 161 . 16, N=4,I/Y=14,PMT=0.ComputePV=30,883.59.Question20#4 523 1杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Dwascorrect!Asrandomlyselectedsecuritiesareaddedtoaportfolio,thediversifiable(unsystematic)riskdecreases,andtheexpectedlevelofnondiversifiable(systematic)riskremainsthesame.Question 82 #4 529 4Youranswer:Awascorrect!BasedontheCAPM,theportfolioshouldearn:E(R)=0.05+1.5(0.15?0.05)=0 .20 or20%.Onariskadjustedbasis,thisportfolioliesontheSMLandisthusearningtheproperriskadjustedrateofreturn.Question83#4 529 5Youranswer:Cwascorrect!Theseethicalissuesfallundertheheadingofindividualinvestorconcerns.Someinvestorswouldexcludethesetypesofinvestmentsduetotheirownpersonalpreferences.Question84#4 52 96 Youranswer:Awascorrect!Tofindthecorrelationcoefficientbetweenthetwostocks,wemustfirstfindthestandarddeviationsofeachstockandthenfindthecovariancebetweenthestocks.Thecorrelationcoefficientisthecovariancedividedbytheproductofthestandarddeviations.YearStock1(xavg) 2 Stock2(xavg) 2 99 12 16 500015490 25 01? 121 10 25 avg=8sum=1 86 avg=5sum=50杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Thelawofdiminishingreturnsstatesthatatsomepoint,asmoreofaresourceisusedinaproductionprocess,holdingotherinputsconstant,outputincreasesatadecreasingrate.ThisaccountsfortheupwardslopeoftheSRMCcurvebeyondthatpoint.Returnstoscaledeterminetheshapeofthelongruncostcurves.Question40#4 525 1Youranswer:Bwascorrect!Underperfectcompetition,eachfirmfacesaflatdemandcurve.Thismeansthepriceisconstantandthemarginalrevenuelineisflat.AcompanywillcontinuetoproduceaslongasMR>MC,sothecompetitivecompanywillproduceaslongasP>MC.ItwillstopwhenMC=MR=P.Question41#4 525 2Youranswer:Cwascorrect!Intheshortrun,thedecisiontooperateisbasedonwhetherpricecoversaveragevariablecosts.Inthelongrun,averagefixedcostsmustbeconsideredaswell.Sunkcostsarehistoricalcosts.Sinkingfundsareestablishedtoretirelongtermdebt.Themarginalrevenuefromsellinganadditionalunitofoutputmustbeatleastasgreatasitsmarginalcostofproduction.Question 42 #4 525 3Youranswer:Awascorrect!ToconvertMexicanpesopricestoU.S.dollars,divideby 12. ShoesarecheaperinMexicoversustheU.S.(40versus50);soaretoys(3versus4)andhats(8versus10).Therefore,theU.S.shouldimportallthreegoodsfromMexico.Question43#4 525 4Youranswer:Cwascorrect!TheAUDdepreciatedbecauseitnowtakesmoreAUDtobyaUSD.Acrossrateistheexchangeratebetweentwocountriesderivedfromtheirexchangerateswithathirdcountry.Directexchangeratesdon抰necessarilyinvolvetheU.S.dollar.杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Mean= 120 /10= 12, median=10,andmode=10.Thedistributionisskewedtotheright,sothemeanisgreaterthanthemedianandmode.Generally,forpositivelyskeweddistributions,themodeislessthanthemedian,whichislessthanthemean.Inthiscase,themodeandmedianareequalbecausethenumberofobservationsissmall.Question24#4 523 5Youranswer:Cwascorrect!Thecoefficientofvariation,CV=standarddeviation/arithmeticmean,isacommonmeasureofrelativedispersion(risk).CVW=0.4/0.5=0.80;CVX=0.7/0.9=0.78;CVY=4.7/1 .2= 3. 92 andCVZ=5 .2/ 1.5=3.47.BecausealowerCVmeanslowerrelativerisk,SecurityXhasthelowestrelativeriskandSecurityYhasthehighestrelativerisk.Question25#4 52 36 Youranswer:Dwascorrect!TheSharpemeasureforaportfolioiscalculatedasthe(meanportfolioreturn?meanreturnontheriskfreeasset)/portfoliostandarddeviation.TheSharpemeasuresforthefourmutualfundsare:Mutualfund1=( 12? 5)/15=0.47Mutualfund2=(13?5)/18=0.44Mutualfund3=(15?5) /20 =0.50Mutualfund4=(18?5) /24 =0.54Assumingthatinvestorspreferreturnanddislikerisk,theyshouldpreferportfolioswithlargeSharperatiostothosewithsmallerratios.Thus,theinvestorshouldprefermutualfund4.Question 26 #4 523 7Youranswer:Bwascorrect!Subjectiveprobabilityisbasedonpersonaljudgment.Arandomvariableisaquantitywhoseoutcomesareuncertain.杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Interestexpense=9,900,8 36. 51×0.0 825 =$8 16, 819.01Yearendadjustment=8 16, 819.01?800,000=$ 16, 819.01Yearenddebt=$9,900,8 36. 51+$ 16, 819.01=$9,917 ,65 5. 52 Note:Sincethisisadiscountbond,weknowthevaluewillincreaseeachyear,sowereallydidn抰havetodoanycalculationstoanswerthisquestion.Question 66 #4 527 8Youranswer:Dwascorrect!Thereportedannualleaseexpenseforacapitalleaseisthedepreciationoftheassetvalueplustheannualinterestontheremainingleaseliability.Wemustusethelowerrate,theimplicitleaserateof8%,tocalculatethepresentvalueofthe10leasepayments,whichis $20 ,000.Theannualinterestiscalculatedusingthe8%rateandthe $20 ,000presentvalueoftheleaseliabilityattheinitiationofthelease.= $2, 000Interestexpense(nonoperatingexpense)=( $20 ,000)(0.08)=$1 ,60 0Totalreportedleaseexpense=$3 ,60 0Question67#4 527 9Youranswer:Bwascorrect!Taxbenefitsarerealizedifthelesseeisinalowtaxbracketandthelessorisinahightaxbracket.Anoperatingleaseallowsthelessortoretainthe(greater)taxbenefitsfromdepreciatingtheasset.Forexample,thelessorbenefitsfromusingaccelerateddepreciationonitstaxreturns.Question68#4 528 0Youranswer:Awascorrect!Operatingleasesareatypeofoffbalancesheetfinancing.Ananalystshouldcapitalizeoperatingleasestodevelopmorerepresentativeleverageratiosandtofacilitatecomparison...
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2007 schweser answers explanations of book 6 exam 1 am
... 杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question79#449 16 Youranswer:Dwasincorrect.ThecorrectanswerwasC)Theintroductionofazerobeta(nosystematicrisk)portfoliowithareturnthatishigherthantheriskfreeratecanresultinastraightCMLevenwiththeassumptionthatborrowingandlendingratesaredifferent.Marginaccountsrepresentborrowing,sounlessthemarginlendingrateisthesameastheriskfreerate,thisdoesnotsolvetheproblem(akinkedCML)thatresultsfromunequalborrowingandlendingratesinthemodel.Question80#44917Youranswer:Dwascorrect!TheStandardsofPracticehaveverylittletodowithinvestmentconstraints.Question81#44918Youranswer:Awascorrect!Ariskaverseinvestorpreferslessrisktomorerisk.Thelowerthecorrelation,thegreatertheriskreduction.Thus,ariskaverseinvestorwouldmostprefertheportfoliowiththelowestcorrelationcoefficientandleastprefertheonewiththehighest.Ofthechoicesgiven,AandC抯correlationcoefficientof+0.6isthehighest.Question 82 #44919Youranswer:Bwascorrect!TheCAPMconcludesthatexpectedreturnsareapositive(linear)functionofsystematicrisk.Question83#44 920 Youranswer:Cwascorrect!TheSMLandCMLarebothlines,andbothintersecttheverticalaxisattheriskfreerate.TheSMLdescribestherisk/returntradeoffforindividualsecuritiesorportfolios,whereastheCMLdescribestherisk/returntradeoffofvariouscombinationsofthemarketportfolioandarisklessasset.Question84#44 922 杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question70#44907Youranswer:Bwascorrect! $2/ 50+0.08= 12. 0%Question71#44908Youranswer:Bwascorrect!Question 72 #44909Youranswer:Bwascorrect!Businessriskisthecombinationofsalesrisk,whichisthevariabilityofafirm'ssales,andoperatingrisk,whichistheadditionalvariabilityinoperatingearnings(EBIT)causedbyfixedoperatingcosts.Leverageisthecombinationofbusinessriskandfinancialrisk,whichistheadditionalriskcommonshareholdersmustbearwhenafirmusesfixedcostsourcesoffinancing.Question73#44910Youranswer:Dwascorrect!Sinceequityis40%ofassets,theequitymultiplieris1/0.40 =2. 5.UsingthetraditionalDuPontformula,ROE=8.7% 2. 4 2. 5= 52. 2%.Question74#44911Youranswer:Dwascorrect!g=(1?payout)(ROE)=(1?0.40)( 16% )=9 .6% 杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Dwascorrect!About68%ofallobservationsfallwithin?standarddeviationofthemean.Thus,about68%ofthevaluesfallbetween5and25.Question30#44 860 Youranswer:Bwascorrect!Thecentrallimittheoremholdsforanydistributionaslongasthesamplesizeislarge(i.e.,n>30).Question31#44 861 Youranswer:Bwascorrect!Thepopulationvarianceisknown(inthiscase100),sothestandarderrorofthesamplemeanisQuestion 32 #44 863 Youranswer:Cwascorrect!Thettestisusedwhenthesamplesizeissmall.Question33#44 864 Youranswer:Dwascorrect!Itwoulddecrease,notincrease,theprofitabilityofcorporateinvestmentprojects.Question34#44 865 Youranswer:Awascorrect!Thepotentialdepositexpansionmultiplieristhereciprocalofthereserveratio.Ifthereserveratiois20%,then1/0 .20 =5.Question35#44 866 杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question75#449 12 Youranswer:Awascorrect!Straightlinedepreciation:$14million/7= $2. 0millionAccelerateddepreciation:$14million×0.333=$4 .66 2millionQuestion 76 #44913Youranswer:Awascorrect!Sunkcostsarenottobeincludedininvestmentanalysis.Opportunitycosts,changesinnetworkingcapital,andtheproject抯impactontaxesareallrelevantvariablesindeterminingprojectcashflowforacapitalinvestment.Question77#44914Youranswer:Bwascorrect!Forthe4yearperiod,theaveragenetincomeis:($ 42, 000+$98,000+$ 56, 000+$ 56, 000)/4= $63 ,000.Theinitialbookvalueis$800,000,decliningby $20 0,000peryearuntilthefinalbookvalueis$0.Theaveragebookvalueforthisassetis:($800,000?$0) /2= $400,000.Theaverageaccountingrateofreturnis:AAR=averagenetincome/averagebookvalue= $63 ,000/$400,000=0.1575=15.75%.Question78#44915Youranswer:Cwascorrect!Regularlyreviewingperformance,independence,skills,andexperienceofexistingboardmembersisacharacteristicoftheRemunerations/CompensationCommittee,nottheAuditCommittee.AllotherchoicesarepositivecharacteristicsoftheAuditCommittee.杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Firstyearinterestis10%×$2million= $20 0,000.Firstyearprincipalpayment =23 4,919 20 0,000=$34,919.Firstyearaftertaxcashflowis[300,000 20 0,000 60 ,00035,000](10.35)34,919+ 60 ,000 =28 ,331.Remainingprincipalbalanceis2million34,919=1, 965 ,081sosecondyearinterestis1 96, 508andprincipalportionofthepaymentis234,9191 96, 508=38,411Secondyearaftertaxcashflowis[300,0001 96, 508 60 ,00035,000](10.35)38,411+ 60 ,000 =27 ,109.Includingtheproceedsofthesalethetotalsecondyearaftertaxcashflowis637,109.NPV==$ 52, 291.81Question111#44950Youranswer:Dwascorrect!Thefourfirmconcentrationratioisthesumofthemarketsharesofthefourlargestfirmsintheindustry.45% +25 %+15%+10%=95TheHerfindahlindexisthesumofthesquaresofthemarketsharesofeachofthefirmsintheindustry.0.45 2 +0 .25 2 +0.15 2 +0.10 2 +0.05 2 =0.30Question1 12 #44951Youranswer:Bwascorrect!Thisstatementiscorrectinthatthecostofaputoptionisnegative.(Theinvestorhastopayfortheflexibilityoftheputoption.)Theotherstatementscouldnotbecorrect.The搒preadoverthespotratesforaTreasurysecuritysimilartoStahl抯bond?referstoZspreadonthebond.Foracallablebond,theOAS<Zspread,sothiscouldnotbeatruestatementbecause135bp>110bp.TheoptioncostiscalculatedusingtheOASandtheZspread,notthenominalspread.Thestaticspread(orZspread)isthespreadovereachofthespotratesinagivenTreasurytermstructure,notthespreadovertheTreasury抯YTM.(Note:Weslippedinafixedincomequestionhereinthederivativessectionofthetest.CFAInstitutecandothisatanytime.Beonyourguardforthesetypesoftricks!)Question113#449 52 杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Cwascorrect!Note:Question108#44947Youranswer:Dwascorrect!Aflattermstructurecouldbeexplainedaccordingtotheliquiditypreferencetheoryasacasewhereinvestorsexpectshorttermratestodeclineslightly,coupledwithamaturitypremiumthatexactlyoffsetsthedownwardpressurecontainedininvestorexpectations.Ahumpedtermstructurecouldbeexplainedaccordingtothepureexpectationstheoryifwebelievethatforshortermaturities,investorsbelieveinterestrateswillrisealongwiththebeliefthatmediumtermrateswilldeclinealongwiththebeliefthatlongertermrateswillbestable.Thepureexpectationstheorymakesnospecificmentionofthefactthatanupwardslopingtermstructureisaconsequenceofinvestorsexpectingshorttermratestoremainunchangedforaperiodoftimefollowedbyinvestorsexpectingshorttermratestoriseforaperiodoftime.Allthistheorysaysisthatanupwardslopingtermstructurecanbeexplainedbyinvestorsbelievingthatfutureshorttermrateswillrise.Finally,theliquiditypreferencetheoryattemptstoexplainthetermstructureaccordingtotwofactors.Theseareexpectationsaboutfutureinterestratesandamaturitypremiumtocompensateforinterestraterisk.Ifthetermstructureisdeclining,thiscouldbeexplainedsimplybyinvestorexpectationsofdecliningfutureshorttermratescoupledwithamaturitypremiumthatisnotlargeenoughtooffsetthedownwardpressureoninterestratesduetoinvestorexpectations.Question109#44948Youranswer:Awascorrect!Thevariabilityofpricesingeneralissignificantlylargerthanisthevariabilityof(uncertaintyabout)dividendsandhencemanagingpriceriskisofprimaryimportance,whiletheuncertaintyofdividendsisofsecondaryimportance.Theremainingstatementsarecorrect.Question110#44949Youranswer:Cwascorrect!杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Gainsorlossesfrommarketingmarketablesecuritiestotheirmarketvalueswillreverseiftheyaresoldandarethustemporarydifferences.Theotherstatementsarecorrect.Question 66 #44903Youranswer:Awascorrect!Whenanalyzingthefirm'sincometaxdisclosures,watchforthesewarningsignals:1)Companiesthatgeneratesignificantpretaxincomeontheirfinancialstatementswhilereportinglowtaxespayable(i.e.,loweffectivetaxrates)arelikelytobeemployingaggressiveaccountingmethodsandhavelowqualityearnings.SoStatement1iscorrect .2) Restructuringchargestypicallyhavenotaxcashfloweffectsintheyeartheyarerecordedbutmayhavesignificanteffectsinfutureyearsastherestructuredoperationsandimpairedassetsaresold.SoStatement2iscorrectandChoiceAisthecorrectanswer.Ananalystmayalsolookoutforthefollowingadditionalitems:3)Adecreaseincapitalspendingmaysignalareversalofpasttemporarydifferencesrelatedtodepreciationmethods,resultinginhighertaxespayable.4)Temporarydifferencesmayreversebecauseofchangesintaxlaw,causinghighertaxespayable.Question67#44904Youranswer:Cwascorrect!Atakeorpayagreementobligatesabuyertopaythesellerofaproductorserviceaminimumamount,regardlessofwhethertheproductorserviceisdelivered.Thisistreatedasaliability,andthediscountedvaluemustbereflectedonthebuyer抯balancesheet.Question68#44905Youranswer:Cwascorrect!Cisreversed.Grossprofitisrecognizedattheinceptionforthesalestypelease.Question69#449 06 Youranswer:Bwascorrect!N =20 ;FV=1000;PV=?94;PMT =60 ;CPT→I/Y=7%kd=(7%)(1?0.4)=4 .2% 杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Thecurrentaccountmeasurestheexchangeofmerchandisegoods,theexchangeofservices,theexchangeofinvestmentincome,andunilateraltransfers(giftstoandfromothernations).Question44#44878Youranswer:Bwascorrect!Ataminimumwageabovetheequilibriumwage,therewillbeanexcesssupplyofworkers.Firmssubstituteotherproductiveresourcesforlaborandusemorethantheeconomicallyefficientamountofcapital.Theresultisincreasedunemploymentandadecreaseineconomicefficiency.Firmsmaydecreasethequalityorquantityofthenonmonetarybenefitstheypreviouslyofferedtoworkers.Question45#44880Youranswer:Bwascorrect!Ifultimatepaymentisassuredandthecostestimatesareunreliable,thecompanymustusethecompletedcontractmethodandthuscannotrecognizeprofitsuntiltheendofthecontract.Profitsinyear2arezero.Theotherstatementsaretrue.Attheendofyear3,thebalanceinthecashaccountwillbeequaltothecumulativeprofits,or10?7.5 =2. 5.Underthepercentageofcompletionmethod,thecompanywouldrecognize$1millioninprofitsinyear2Thepercentageofcompletionmethodsmoothsincome,andtheprofitsrecognizedinyear3usingthismethodare (2. 5/7.5 )2. 5=0.833.Question 46 #44881Youranswer:Dwascorrect!cashconversioncycle(CCC)=receivablesdays+inventoryprocessingdays?payablespaymentperiodSincethepayablespaymentperiodincreasesreceivablesby3.32daysandreceivablesdaysincreasesby5,CCCincreasesby1 .68 days.杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question103#44941Youranswer:Dwascorrect!DP/P=DeffectiveDiDP/P=7 .6( +0.0075)=0.057,or5.7%Question104#449 42 Youranswer:Dwascorrect!Thenominalyield(anothertermforthecouponyield)islessthantheyieldtomaturityforadiscountbond.Question105#44943Youranswer:Dwascorrect!Thekeytermhereiscouponbond.Whileaninvestorinafixedcouponbondcanusuallyeliminatepriceriskbyholdingabonduntilmaturity,thesameisnottrueforreinvestmentrisk.Thereceiptofperiodiccouponpaymentsexposestheinvestortoreinvestmentrisk.Anoncallablebondreducesreinvestmentriskbyreducingtheriskofrepayment.Thus,aninvestormostconcernedwithreinvestmentriskwouldpreferanoncallablebondtoacallablebond.Sincelowercouponbondshavelowerreinvestmentrisk,thissameinvestorwouldpreferalowercouponbondtoahighercouponbond.Aninvestorconcernedaboutreinvestmentriskismostconcernedaboutadecreasinginterestrateenvironment.Wheninterestratesdecrease,theinvestorisforcedtoreinvestcouponsandothercashflowsatalowerrate.Withalowercoupon,thisriskisless.Question1 06 #44945Youranswer:Cwascorrect!AspecialpurposevehicleisalegalentitytowhichtheassetsusedascollateralinanABSissuearesold.Thistransactionseparatesthecompanyprovidingthecollateralfromthecompanythatneedsthefinancing.Theassetstransferredtothespecialpurposevehiclearefinancialassets,notfixedassets.Question107#449 46 杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question47#44883Youranswer:Bwascorrect!Becausenetincomeisgiven,thisprobleminvolvesusingtheindirectmethod.Theinterestexpenseisignoredbecauseitisalreadydeductedbeforenetincomeiscalculated.Ignoresalesforthesamereason;netincomeincorporatessales.Question48#44884Youranswer:Awascorrect!Investingcashflowsincludebuyingandsellingequipmentandland.Thisproblemdoesnotinvolveanysuchcashflows.Question49#44885Youranswer:Bwascorrect!Totalcashflowisthedifferencebetweentheendingcashbalanceandthebeginningcashbalance.InQuestions47and48,wecalculatedcashflowfromoperationsof$12andcashflowfrominvestingof$0,soweneedtocalculatecashflowfromfinancing:Totalcashflowisthus$1 02. Iftheendingcashbalanceis $20 0,thebeginningcashbalancewas $20 0?$1 02= $98.Question50#448 86 Netincome+$100Noncashitems:depreciation +2 Changeinaccountsreceivable?0Changeininventory?0Changeinaccountspayable?0CFO$ 12 Saleofcommonstock$100Repaymentofdebt?0Financingcashflows$90杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Cwascorrect!StandardVI(B)PriorityofTransactions.Clienttransactionsmusttakeprecedenceovermembers?orcandidates?trades.Heshouldhavesubmittedhispersonaltradeorderonlyaftertradingforhisclient.StandardIII(B)FairDealingrequiresthatFarleydealfairlywithallclientswhenrecommendingsecuritiesortakinginvestmentaction.SincetheendowmentfundisFarley抯onlyaccount,hehasnotdisadvantagedanyotherclientbyonlytakingactiononthebehalfoftheendowment.Question15#44837Youranswer:Dwascorrect!StandardIII(A)Loyalty,Prudence,andCare.Membersandcandidatesmustcomplywiththeirfiduciarydutytothosepersonsandinterestsbywhomthedutyisowed.Specifically,membersmustalwaysactforthebenefitoftheirclientsandplaceclients?interestsbeforetheirown.Murphy抯actionsindirectingtradestoCasanovaviolatethefiduciarydutyowedtoWellington&Worrel抯clients,asheappearstobeselectingCasanovaforthediscountsreceivedonpersonalsecuritiestransactions.Casanovachargeshighercommissionratesanddeliverspoorerexecutionthanotherbrokersusedbythefirm.ByusingCasanova,Murphyviolateshisfiduciarydutybyfailingtoactintheclients?bestinterest.Alternatively,thearrangementwithCedrockappearstocomplywithMurphy抯fiduciaryduty,asthefirmreceivesinvestmentresearchusedinmanagingclientportfolios(asoftdollararrangement)andachievesbetterexecutionforclienttrades.BecausethetradingarrangementwithCedrockbenefitsclients,itdoesnotviolateStandardIII(A).Question 16 #44838Youranswer:Bwasincorrect.ThecorrectanswerwasC)DoddhasmostlikelyviolatedStandardIII(B)FairDealingbygivingPhillipsanovergenerousallocationoftheoversubscribed(揾ot?newissue.Theissueisnotthatheisofferingcompensationtoaclienttoresolveadispute,butthatbyoverallocatingtheIPOsharestoPhillipsheisnottreatinghisotherclientsfairly.StandardIII(B)FairDealingrequiresthatcandidatesandmembersnotusesharesof揾otissues?asanincentivetoachievearewardorbenefit.Thebenefitinthiscaseisthatthedisputewill揼oaway.?/SPAN>Question17#44839Youranswer:Dwascorrect!杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Ifthedebtratio(TD/TA)isequalto40%andthefirmhasnopreferredstock,thepercentageofequityis1?0.40,or60%.Question54#44890Youranswer:Bwascorrect!Sharesissuedpostsplitneednotbeadjustedforthesplitastheyare搉ew?shares.Question55#448 92 Youranswer:Awascorrect!BecausebasicEPSdoesnotadjustforwarrants,theadjustmentis0.DilutedEPSusesaverageprice.SinceAP>EX,Question 56 #44893Youranswer:Dwascorrect!Aisnotnecessarilytrue.Byitself,alowreceivablesturnoverreferstotheaveragetimeittakesthecompanytocollectitsreceivables,nottothelevelofreceivables(whichwillaffect,butnotdictateitscurrentratio).Bisnotnecessarilytrue;whetherafirm抯ROAishigherthanitsROEdependsontherelationofthecostofdebttoitsROA.Cisincorrect.Justthefactthatacompanyhasahighgrossprofitmargindoesnotnecessarilymeanitwillhaveahighnetprofitmargin.Forexample,thecompanycouldhaveveryhighoperatingexpensesandendupwithalownetprofitmargin.Thecashconversioncycleis:( 365 /6) +( 365 /9)?( 365 / 12) =60 .8+40 .6? 30.4=71days.Question57#44894Youranswer:Cwascorrect!Inperiodsofrisingpricesandstableorincreasinginventoryquantities,FIFO,comparedtoLIFO,resultsinhigherworkingcapital.杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Bwascorrect!Thefourfirmconcentrationratiois35%+10% +20 %+30%=95%.TheequivalentnumberoffirmsisthereciprocaloftheHerfindahlindex.Sincethesefivefirmscomprise100%ofthemarket,theHerfindahlindexissotheequivalentnumberoffirmsisQuestion89#44 927 Youranswer:Awascorrect!Optionfreebondshavepositiveconvexityandtheeffectof(positive)convexityistoincreasethemagnitudeofthepriceincreasewhenyieldsfallandtodecreasethemagnitudeofthepricedecreasewhenyieldsrise.Question90#44 928 Youranswer:Awascorrect!Duringtherecoveryphaseofthebusinesscycle,cyclicals,commodities,andcommoditylinkedequitiesaregenerallyattractiveinvestments.Question91#44 929 Youranswer:Dwascorrect!IncreasesinkreduceP/E.IncreasesingorthedividendpayoutratioincreaseP/E.Question 92 #44930Youranswer:Dwascorrect!杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Underlyingearningsshouldbeusedinthecalculation.Thesearetransitory,nonrecurringcomponentsofearningsthatarespecifictothecompany.Also,themostrecentearningsinformationshouldbeusedinthecalculation.Thereforeweget:Question93#44931Youranswer:Awascorrect!Theriskpremiumwillbeafunctionofbusinessrisk,financialrisk,liquidityrisk,exchangeraterisk,andcountry(politicalrisk).Stocksdonotinvolvedefaultrisk.Question94#449 32 Youranswer:Bwascorrect!SemiannualcompoundrateisEndingvaluemustbe$888.94(1.0 325 )14=$1,391. 02. Question95#44933Youranswer:Bwascorrect!Thisisasupernormalgrowthstockvaluationproblem.Step1:Findthedividendsinthesupernormalgrowthperiod.D1=1.00(1 .20 )=$1 .20 ;D 2 =1 .2( 1 .2) =$1.44;D3=1.44(1.15)=$1 .65 6Step2:Usetheconstantgrowthmodeltofindthepriceattheendofperiod3.$1,391. 02 ?u>1,000.00facevalueatmaturity391. 02 ?u>315.00totalcoupons(14× 22 .50) 76. 02 杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Step3:Discountallofthecashflowsbacktotimezero.Question 96 #44934Youranswer:Cwascorrect!Usethesamedividendsand搉ormal?growthpricefromQuestion 96, excepttheperiod1dividend($1 .20 )hasalreadybeenpaid,andwediscounttheremainingtwodividendsandtheend of yearprice(P3)backtotheendofperiod1togetP1.Step1:Findthedividendsinthesupernormalgrowthperiod.D 2 =1 .2( 1 .2) =1.44;D3=1.44(1.15)=$1 .65 6Step2:Usetheconstantgrowthmodeltofindthepriceattheendofperiod3.Step3:Discountallofthecashflowsbacktotimeone.Question97#44935Youranswer:Dwascorrect!TheOASisameasureoftheyieldspreadoverTreasuryspotrateswithouttheoption.Question98#449 36 Youranswer:Cwascorrect!杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Bwascorrect!Note:Donotaddbackdepreciationwhenusingthedirectmethod.Dividendsareafinancingcashflow.Question51#44887Youranswer:Dwascorrect!freecashflow(FCF)=cashflowfromoperations?netcapitalexpendituresFCF=$800?40(purchaseofplantandequipment)+30(saleofland)=$790Question 52 #44888Youranswer:Cwascorrect!Asimplenumericalexamplecanhelp.AssumeCA=2andCL=1.ThennoteandDebtisdecreased,butequityisunchanged,soD/Eisdecreased.Question53#44889Youranswer:Cwascorrect!Sales牋+$4,000牋Cashreceivedfromcustomers牋牋+$4,000(sincenochangeinAR)Costofgoodssold牋?,000?/td>Increaseininventory牋?00?/td>Increaseinaccountspayable牋+300?/td>Othercashinputexpenses牋?00?/td>Cashpaidforinputs牋牋牋?,300Cashpaidfortaxes牋牋牋?00Cashflowfromoperations牋?/td>?1,500杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！TheeightmajorsectionsoftheCFAInstituteGlobalInvestmentPerformanceStandardsareFundamentalsofCompliance,InputData,CalculationMethodology,CompositeConstruction,Disclosures,PresentationandReporting,RealEstate,andPrivateEquity.Question18#44840Youranswer:Bwascorrect!StandardIII(C)Suitabilityrequiresthattheclientportfoliofittheclientriskandreturnobjectivesasstatedintheinvestmentpolicystatement,andthatseemstobethecasehere.Theproperfocusofriskanalysisisontheentireportfolioandneednotbeappliedonanissuebyissuebasis.ThereappearstobenoviolationofV(A)DiligenceandReasonableBasissincehispreviousanalysisindicatedtheportfoliowassuitableandhisrecordssupportedthatconclusion.Question19#44841Youranswer:Bwascorrect!Withnointerestpaidontheoriginal$5,000loan,at6%infiveyearstheloanbalancewillbe:Newloanbalance=$5,000(1. 06) 5= $6, 691.13orPV=5,000;I/Y =6 N=5;PMT=0;CPT→FV= ?6, 691.13. $6, 691.13istheloanthathastoberetiredoverthenextfiveyears.Thefinancialcalculatorsolutionis:PV =6, 691.13;I/Y =6 N=5;CPT→PMT.YouobtainPMT=?,588.45.Question20#44844Youranswer:Cwascorrect!N=4;PV=?,000;FV =6, 520 ;CPT→I/Y= 12. 99%,orQuestion21#44845Youranswer:Cwascorrect!AandBdescribeahistogram,andDdescribesafrequencypolygon.Question 22 #448 46 杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Awascorrect!holdingperiodreturn(HPR)=Question23#44847Youranswer:Cwascorrect!range=maximumvalue?minimumvalue=55?15=40Calculatethemean:Togetthemeanabsolutedeviation,sumthedeviationsaroundthemean(ignoringthesign),anddividebythenumberofobservationsNotethattheunitsofvarianceherearepercentsquared.Usingdecimalsratherthanwholepercentyields0. 025 0.Question24#44848Youranswer:Bwascorrect!Question25#44849杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question58#44895Youranswer:Awascorrect!Question59#448 96 Youranswer:Awascorrect!Question60#44897Youranswer:Dwascorrect!FIFOendinginventory=FIFOINV=LIFOINV+LIFOreserve =22 ,000+4,000=$ 26 , 000Question61#44898Youranswer:Bwascorrect!Thetotalcashflowsareequal,buttheexpensingfirmwillseelowerearlyyearprofitabilityratherthanhigherearlyyearprofitability.Question 62 #44899Youranswer:Cwascorrect!Impairmentmustberecognizedwhenthereissufficientevidencetoindicatethatthevalueofanassetcarriedonthebooksofacompanycannotberecovered.Indicatorsoflackofrecoverabilityincludeasignificantdecreaseinmarketvalue,adversechangesinlegalorbusinessconditions,substantialcostoverruns,andasignificantdeclineinanasset抯longtermlikelihoodofgeneratingprofit.100@ $21 0= $21 ,00070@ $22 5=$15,750$ 36, 750Purchases190Sales170Balance 20 @ $21 0=$4 ,20 0FIFOaftertaxprofit=LIFOaftertaxprofit+(changeinLIFOreserve)(1?t)= $2, 000+($4,000?$3,000)(1?0.4)= $2, 000+ $60 0= $2 ,60 0杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Bwascorrect!Forthepositivelyskeweddistribution,themodeislessthanthemedian,whichislessthanthemean.Question 26 #44850Youranswer:Bwasincorrect.ThecorrectanswerwasA)ThenominalincreaseinindustrialproductionisexpectedtobeThustherealchangeisexpectedtobeGiventheregressionequation,ourforecastis9,397.54=8,950+395(1.133).Question27#44851Youranswer:Awascorrect!ThefirstyearaccountreturnwasThesecondyearreturnwasThegeometricmeanis,whichisthetimeweightedreturn.Sinceonlyoneassetwasinvolved,alsogivesthetimeweightedreturn.Tocalculatethemoneyweightedreturn,usethecashflowfunctionwithCf0= ?2, 000,Cf1=?5,000,andCf2=54,000 2= 108,000,andcomputeIRR,whichis7.73%.Themoneyweightedreturnislowerbecausetheamountintheaccountwasgreaterinthesecondperiod,whenthereturnwaspoor.Question28#44858Youranswer:Dwascorrect!Thebinomialdistributionisadiscretedistribution,whilethenormaldistributionisanexampleofacontinuousdistribution.Univariateandmultivariatedistributionscanbediscreteorcontinuous.Question29#44859杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question10#448 32 Youranswer:Bwascorrect!AccordingtoStandardIV(B)AdditionalCompensationArrangements,membersandcandidatesmustobtainwrittenpermissionfromtheiremployerbeforeacceptinganofferofcompensation(fortheperformanceofworkdonefortheiremployer)inadditiontowhattheyreceivefromtheiremployerandthatiscontingentonfutureperformance.Suchcontingentadditionalcompensationisjudgedtobereasonablyexpectedtoimpairtheemployee抯independenceandobjectivity.Question11#44833Youranswer:Awasincorrect.ThecorrectanswerwasD)CompliancerequiresthatthefirmfollowlocallawanddisclosetheconflictbetweenlocallawandGIPS.Question 12 #44834Youranswer:Awascorrect!StandardIII(D)PerformancePresentationrequiresthatstatementsaboutperformancebenotonlyaccurate,butalsofairandcomplete.WhileVance抯statementmaybeaccurateinatechnicalsense,itisneitherfairnorcomplete,anditseemsintendedtomisleadprospectsaboutVance抯trackrecordinmanagingequitiesaccountsand/orselectingequitysecurities.WhilecompliancewithGIPSanditsmethodsofcompositeconstructionarerecommended,theyarenotrequiredbytheStandard.Question13#44835Youranswer:Dwascorrect!StandardV(B)CommunicationwithClientsandProspectiveClients.Briefcommunicationsmustbesupportedbybackgroundreportsordatathatcanbemadeavailabletotheclientifrequested.Drakeshouldhavegiventheclientamoredetailedanalysisoftheinvestmentwhentheclientcalledtorequestsuchinformation.DrakedidnotviolateStandardIII(C)becausehe搕horoughly?readandevaluatedtheanalysisanddeterminedthatthestructuredproductwasinlinewithhisclient抯objectivesbeforerecommendingtheproducttohisclient.Question14#448 36 杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！SchweserPrintableAnswers Book6 Exam1 AMTestID#:1 364 808Question1#447 86 Youranswer:Cwascorrect!StandardVI(C)ReferralFees.Membersandcandidatesshalldisclosetoclientsandprospectsanyconsiderationorbenefitreceivedbythememberordeliveredtoothersfortherecommendationofanyservicetotheclientorprospect.Thisallowstheclienttoevaluateanypartialityshowninmakingreferrals.Question2#44787Youranswer:Awascorrect!StandardIV(C)ResponsibilitiesofSupervisorsexplicitlystatesthatspeakingtotheemployeetodeterminetheextentoftheviolationsandreceivingassurancesthatitwillnotberepeatedisnotenough.Finleymusttakepositivestepstoinsurethattheviolationwillnotberepeatedincludingpromptlylaunchinganinvestigationandlimitingtheemployee抯activitiesand/orincreasingsupervisionoftheemployeduntiltheresultsoftheinvestigationareknown.Question3#44788Youranswer:Awascorrect!SteinviolatedStandardI(C)Misrepresentationbypresentingmaterialdevelopedbyanotherwithoutacknowledgement.Question4#44789Youranswer:Dwascorrect!StandardV(A)DiligenceandReasonableBasis.Therecommendationreflectstheconsensusofthegroupandnotnecessarilytheopinionofthememberorcandidate.Iftheconsensusopinionhasareasonablebasis,thememberdoesnothavetodissociatefromthereportbutshoulddocumentthedifferenceofopinion.Question5#44 825 杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Cwascorrect!Thisisanout of themoneycoveredcall.Thestockcangoup$2tothestrikeprice,andthenthewriterwillget$3forthepremium.Thus,themaximumprofitis$5.Question114#44953Youranswer:Dwasincorrect.ThecorrectanswerwasB)Bothstatementsareincorrect.Asyieldsrise,thevalueoftheembeddedputoptioninaputablebondincreasesand(beyondacriticalpoint)reducesthedeclineinthevalueofthebondcomparedtoasimilaroptionfreebond.Asyieldsfall,thevalueoftheembeddedputoptiondecreases,and(beyondacriticalpoint)theputablebondbehavesmuchthesameasasimilaroptionfreebondsincetheembeddedputoptionhaslittleornovalue.Question115#44954Youranswer:Bwasincorrect.ThecorrectanswerwasD)Theincomeapproachusesnetoperatingincomebeforefinancingandtaxes.Hedonicpriceestimationusessimilarpropertiestodeterminetheappropriateregressioncoefficients.Question1 16 #44955Youranswer:Dwascorrect!aftertaxcashflow=(revenue?cost?depreciation)(1?t)+depreciation(revenue?cost)(1?t)+depreciation(t)[ $25 0,000?(0.04× $25 0,000)?$15,000?($1,000,000×0.0 26 ) ](1?0.35)+(1,000,000×0.0 26 ) [( $25 0,000?$10,000?$15,000?$ 26 , 000)(0 .65 )]+$ 26 , 000=$155,350Question117#449 56 Youranswer:Bwascorrect!Historicalriskandreturndataisgenerallylimitedandnotveryeasytoobtain.Question118#44957杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Dwascorrect!Studieshavedemonstratedthatapproximately90%ofaportfolio抯returnscanbeexplainedbyitstargetassetallocations.Itisverydifficulttogenerateabnormalportfolioreturnsbymarkettimingandsecurityselectionwithinassetclasses.Question85#44 923 Youranswer:Awascorrect!Marketweightedindex:Day1:whichisscaledtoavalueof500.Day2:whichnowhastobeadjustedrelativetotheinitialbasevalueof500fromday1.Weget:Finally,thepercentagechangeisQuestion 86 #44 924 Youranswer:Awascorrect!AportfoliowithequalnumbersofsharesofeachstockintheDJIAwillmatchtheperformanceoftheindexassumingtherearenostocksplits,stockdividends,orchangesinthemakeupoftheindex.Thereturnontheindexdoesnotincludedividendpayments.Sincethereinvesteddividendswilladdtothenumberofsharesofthosestocksthatpaydividends,Gomez抯portfolioreturnwillexceedthatoftheDJIA.Question87#44 925 Youranswer:Cwascorrect!Thetopdown,threestepprocessgoesfromtheeconomytotheindustrytothefirm,inthatorder.Question88#449 26 ... 杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question79#449 16 Youranswer:Dwasincorrect.ThecorrectanswerwasC)Theintroductionofazerobeta(nosystematicrisk)portfoliowithareturnthatishigherthantheriskfreeratecanresultinastraightCMLevenwiththeassumptionthatborrowingandlendingratesaredifferent.Marginaccountsrepresentborrowing,sounlessthemarginlendingrateisthesameastheriskfreerate,thisdoesnotsolvetheproblem(akinkedCML)thatresultsfromunequalborrowingandlendingratesinthemodel.Question80#44917Youranswer:Dwascorrect!TheStandardsofPracticehaveverylittletodowithinvestmentconstraints.Question81#44918Youranswer:Awascorrect!Ariskaverseinvestorpreferslessrisktomorerisk.Thelowerthecorrelation,thegreatertheriskreduction.Thus,ariskaverseinvestorwouldmostprefertheportfoliowiththelowestcorrelationcoefficientandleastprefertheonewiththehighest.Ofthechoicesgiven,AandC抯correlationcoefficientof+0.6isthehighest.Question 82 #44919Youranswer:Bwascorrect!TheCAPMconcludesthatexpectedreturnsareapositive(linear)functionofsystematicrisk.Question83#44 920 Youranswer:Cwascorrect!TheSMLandCMLarebothlines,andbothintersecttheverticalaxisattheriskfreerate.TheSMLdescribestherisk/returntradeoffforindividualsecuritiesorportfolios,whereastheCMLdescribestherisk/returntradeoffofvariouscombinationsofthemarketportfolioandarisklessasset.Question84#44 922 杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question70#44907Youranswer:Bwascorrect! $2/ 50+0.08= 12. 0%Question71#44908Youranswer:Bwascorrect!Question 72 #44909Youranswer:Bwascorrect!Businessriskisthecombinationofsalesrisk,whichisthevariabilityofafirm'ssales,andoperatingrisk,whichistheadditionalvariabilityinoperatingearnings(EBIT)causedbyfixedoperatingcosts.Leverageisthecombinationofbusinessriskandfinancialrisk,whichistheadditionalriskcommonshareholdersmustbearwhenafirmusesfixedcostsourcesoffinancing.Question73#44910Youranswer:Dwascorrect!Sinceequityis40%ofassets,theequitymultiplieris1/0.40 =2. 5.UsingthetraditionalDuPontformula,ROE=8.7% 2. 4 2. 5= 52. 2%.Question74#44911Youranswer:Dwascorrect!g=(1?payout)(ROE)=(1?0.40)( 16% )=9 .6% 杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Dwascorrect!About68%ofallobservationsfallwithin?standarddeviationofthemean.Thus,about68%ofthevaluesfallbetween5and25.Question30#44 860 Youranswer:Bwascorrect!Thecentrallimittheoremholdsforanydistributionaslongasthesamplesizeislarge(i.e.,n>30).Question31#44 861 Youranswer:Bwascorrect!Thepopulationvarianceisknown(inthiscase100),sothestandarderrorofthesamplemeanisQuestion 32 #44 863 Youranswer:Cwascorrect!Thettestisusedwhenthesamplesizeissmall.Question33#44 864 Youranswer:Dwascorrect!Itwoulddecrease,notincrease,theprofitabilityofcorporateinvestmentprojects.Question34#44 865 Youranswer:Awascorrect!Thepotentialdepositexpansionmultiplieristhereciprocalofthereserveratio.Ifthereserveratiois20%,then1/0 .20 =5.Question35#44 866 杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question75#449 12 Youranswer:Awascorrect!Straightlinedepreciation:$14million/7= $2. 0millionAccelerateddepreciation:$14million×0.333=$4 .66 2millionQuestion 76 #44913Youranswer:Awascorrect!Sunkcostsarenottobeincludedininvestmentanalysis.Opportunitycosts,changesinnetworkingcapital,andtheproject抯impactontaxesareallrelevantvariablesindeterminingprojectcashflowforacapitalinvestment.Question77#44914Youranswer:Bwascorrect!Forthe4yearperiod,theaveragenetincomeis:($ 42, 000+$98,000+$ 56, 000+$ 56, 000)/4= $63 ,000.Theinitialbookvalueis$800,000,decliningby $20 0,000peryearuntilthefinalbookvalueis$0.Theaveragebookvalueforthisassetis:($800,000?$0) /2= $400,000.Theaverageaccountingrateofreturnis:AAR=averagenetincome/averagebookvalue= $63 ,000/$400,000=0.1575=15.75%.Question78#44915Youranswer:Cwascorrect!Regularlyreviewingperformance,independence,skills,andexperienceofexistingboardmembersisacharacteristicoftheRemunerations/CompensationCommittee,nottheAuditCommittee.AllotherchoicesarepositivecharacteristicsoftheAuditCommittee.杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Firstyearinterestis10%×$2million= $20 0,000.Firstyearprincipalpayment =23 4,919 20 0,000=$34,919.Firstyearaftertaxcashflowis[300,000 20 0,000 60 ,00035,000](10.35)34,919+ 60 ,000 =28 ,331.Remainingprincipalbalanceis2million34,919=1, 965 ,081sosecondyearinterestis1 96, 508andprincipalportionofthepaymentis234,9191 96, 508=38,411Secondyearaftertaxcashflowis[300,0001 96, 508 60 ,00035,000](10.35)38,411+ 60 ,000 =27 ,109.Includingtheproceedsofthesalethetotalsecondyearaftertaxcashflowis637,109.NPV==$ 52, 291.81Question111#44950Youranswer:Dwascorrect!Thefourfirmconcentrationratioisthesumofthemarketsharesofthefourlargestfirmsintheindustry.45% +25 %+15%+10%=95TheHerfindahlindexisthesumofthesquaresofthemarketsharesofeachofthefirmsintheindustry.0.45 2 +0 .25 2 +0.15 2 +0.10 2 +0.05 2 =0.30Question1 12 #44951Youranswer:Bwascorrect!Thisstatementiscorrectinthatthecostofaputoptionisnegative.(Theinvestorhastopayfortheflexibilityoftheputoption.)Theotherstatementscouldnotbecorrect.The搒preadoverthespotratesforaTreasurysecuritysimilartoStahl抯bond?referstoZspreadonthebond.Foracallablebond,theOAS<Zspread,sothiscouldnotbeatruestatementbecause135bp>110bp.TheoptioncostiscalculatedusingtheOASandtheZspread,notthenominalspread.Thestaticspread(orZspread)isthespreadovereachofthespotratesinagivenTreasurytermstructure,notthespreadovertheTreasury抯YTM.(Note:Weslippedinafixedincomequestionhereinthederivativessectionofthetest.CFAInstitutecandothisatanytime.Beonyourguardforthesetypesoftricks!)Question113#449 52 杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Cwascorrect!Note:Question108#44947Youranswer:Dwascorrect!Aflattermstructurecouldbeexplainedaccordingtotheliquiditypreferencetheoryasacasewhereinvestorsexpectshorttermratestodeclineslightly,coupledwithamaturitypremiumthatexactlyoffsetsthedownwardpressurecontainedininvestorexpectations.Ahumpedtermstructurecouldbeexplainedaccordingtothepureexpectationstheoryifwebelievethatforshortermaturities,investorsbelieveinterestrateswillrisealongwiththebeliefthatmediumtermrateswilldeclinealongwiththebeliefthatlongertermrateswillbestable.Thepureexpectationstheorymakesnospecificmentionofthefactthatanupwardslopingtermstructureisaconsequenceofinvestorsexpectingshorttermratestoremainunchangedforaperiodoftimefollowedbyinvestorsexpectingshorttermratestoriseforaperiodoftime.Allthistheorysaysisthatanupwardslopingtermstructurecanbeexplainedbyinvestorsbelievingthatfutureshorttermrateswillrise.Finally,theliquiditypreferencetheoryattemptstoexplainthetermstructureaccordingtotwofactors.Theseareexpectationsaboutfutureinterestratesandamaturitypremiumtocompensateforinterestraterisk.Ifthetermstructureisdeclining,thiscouldbeexplainedsimplybyinvestorexpectationsofdecliningfutureshorttermratescoupledwithamaturitypremiumthatisnotlargeenoughtooffsetthedownwardpressureoninterestratesduetoinvestorexpectations.Question109#44948Youranswer:Awascorrect!Thevariabilityofpricesingeneralissignificantlylargerthanisthevariabilityof(uncertaintyabout)dividendsandhencemanagingpriceriskisofprimaryimportance,whiletheuncertaintyofdividendsisofsecondaryimportance.Theremainingstatementsarecorrect.Question110#44949Youranswer:Cwascorrect!杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Gainsorlossesfrommarketingmarketablesecuritiestotheirmarketvalueswillreverseiftheyaresoldandarethustemporarydifferences.Theotherstatementsarecorrect.Question 66 #44903Youranswer:Awascorrect!Whenanalyzingthefirm'sincometaxdisclosures,watchforthesewarningsignals:1)Companiesthatgeneratesignificantpretaxincomeontheirfinancialstatementswhilereportinglowtaxespayable(i.e.,loweffectivetaxrates)arelikelytobeemployingaggressiveaccountingmethodsandhavelowqualityearnings.SoStatement1iscorrect .2) Restructuringchargestypicallyhavenotaxcashfloweffectsintheyeartheyarerecordedbutmayhavesignificanteffectsinfutureyearsastherestructuredoperationsandimpairedassetsaresold.SoStatement2iscorrectandChoiceAisthecorrectanswer.Ananalystmayalsolookoutforthefollowingadditionalitems:3)Adecreaseincapitalspendingmaysignalareversalofpasttemporarydifferencesrelatedtodepreciationmethods,resultinginhighertaxespayable.4)Temporarydifferencesmayreversebecauseofchangesintaxlaw,causinghighertaxespayable.Question67#44904Youranswer:Cwascorrect!Atakeorpayagreementobligatesabuyertopaythesellerofaproductorserviceaminimumamount,regardlessofwhethertheproductorserviceisdelivered.Thisistreatedasaliability,andthediscountedvaluemustbereflectedonthebuyer抯balancesheet.Question68#44905Youranswer:Cwascorrect!Cisreversed.Grossprofitisrecognizedattheinceptionforthesalestypelease.Question69#449 06 Youranswer:Bwascorrect!N =20 ;FV=1000;PV=?94;PMT =60 ;CPT→I/Y=7%kd=(7%)(1?0.4)=4 .2% 杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Thecurrentaccountmeasurestheexchangeofmerchandisegoods,theexchangeofservices,theexchangeofinvestmentincome,andunilateraltransfers(giftstoandfromothernations).Question44#44878Youranswer:Bwascorrect!Ataminimumwageabovetheequilibriumwage,therewillbeanexcesssupplyofworkers.Firmssubstituteotherproductiveresourcesforlaborandusemorethantheeconomicallyefficientamountofcapital.Theresultisincreasedunemploymentandadecreaseineconomicefficiency.Firmsmaydecreasethequalityorquantityofthenonmonetarybenefitstheypreviouslyofferedtoworkers.Question45#44880Youranswer:Bwascorrect!Ifultimatepaymentisassuredandthecostestimatesareunreliable,thecompanymustusethecompletedcontractmethodandthuscannotrecognizeprofitsuntiltheendofthecontract.Profitsinyear2arezero.Theotherstatementsaretrue.Attheendofyear3,thebalanceinthecashaccountwillbeequaltothecumulativeprofits,or10?7.5 =2. 5.Underthepercentageofcompletionmethod,thecompanywouldrecognize$1millioninprofitsinyear2Thepercentageofcompletionmethodsmoothsincome,andtheprofitsrecognizedinyear3usingthismethodare (2. 5/7.5 )2. 5=0.833.Question 46 #44881Youranswer:Dwascorrect!cashconversioncycle(CCC)=receivablesdays+inventoryprocessingdays?payablespaymentperiodSincethepayablespaymentperiodincreasesreceivablesby3.32daysandreceivablesdaysincreasesby5,CCCincreasesby1 .68 days.杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question103#44941Youranswer:Dwascorrect!DP/P=DeffectiveDiDP/P=7 .6( +0.0075)=0.057,or5.7%Question104#449 42 Youranswer:Dwascorrect!Thenominalyield(anothertermforthecouponyield)islessthantheyieldtomaturityforadiscountbond.Question105#44943Youranswer:Dwascorrect!Thekeytermhereiscouponbond.Whileaninvestorinafixedcouponbondcanusuallyeliminatepriceriskbyholdingabonduntilmaturity,thesameisnottrueforreinvestmentrisk.Thereceiptofperiodiccouponpaymentsexposestheinvestortoreinvestmentrisk.Anoncallablebondreducesreinvestmentriskbyreducingtheriskofrepayment.Thus,aninvestormostconcernedwithreinvestmentriskwouldpreferanoncallablebondtoacallablebond.Sincelowercouponbondshavelowerreinvestmentrisk,thissameinvestorwouldpreferalowercouponbondtoahighercouponbond.Aninvestorconcernedaboutreinvestmentriskismostconcernedaboutadecreasinginterestrateenvironment.Wheninterestratesdecrease,theinvestorisforcedtoreinvestcouponsandothercashflowsatalowerrate.Withalowercoupon,thisriskisless.Question1 06 #44945Youranswer:Cwascorrect!AspecialpurposevehicleisalegalentitytowhichtheassetsusedascollateralinanABSissuearesold.Thistransactionseparatesthecompanyprovidingthecollateralfromthecompanythatneedsthefinancing.Theassetstransferredtothespecialpurposevehiclearefinancialassets,notfixedassets.Question107#449 46 杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question47#44883Youranswer:Bwascorrect!Becausenetincomeisgiven,thisprobleminvolvesusingtheindirectmethod.Theinterestexpenseisignoredbecauseitisalreadydeductedbeforenetincomeiscalculated.Ignoresalesforthesamereason;netincomeincorporatessales.Question48#44884Youranswer:Awascorrect!Investingcashflowsincludebuyingandsellingequipmentandland.Thisproblemdoesnotinvolveanysuchcashflows.Question49#44885Youranswer:Bwascorrect!Totalcashflowisthedifferencebetweentheendingcashbalanceandthebeginningcashbalance.InQuestions47and48,wecalculatedcashflowfromoperationsof$12andcashflowfrominvestingof$0,soweneedtocalculatecashflowfromfinancing:Totalcashflowisthus$1 02. Iftheendingcashbalanceis $20 0,thebeginningcashbalancewas $20 0?$1 02= $98.Question50#448 86 Netincome+$100Noncashitems:depreciation +2 Changeinaccountsreceivable?0Changeininventory?0Changeinaccountspayable?0CFO$ 12 Saleofcommonstock$100Repaymentofdebt?0Financingcashflows$90杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Cwascorrect!StandardVI(B)PriorityofTransactions.Clienttransactionsmusttakeprecedenceovermembers?orcandidates?trades.Heshouldhavesubmittedhispersonaltradeorderonlyaftertradingforhisclient.StandardIII(B)FairDealingrequiresthatFarleydealfairlywithallclientswhenrecommendingsecuritiesortakinginvestmentaction.SincetheendowmentfundisFarley抯onlyaccount,hehasnotdisadvantagedanyotherclientbyonlytakingactiononthebehalfoftheendowment.Question15#44837Youranswer:Dwascorrect!StandardIII(A)Loyalty,Prudence,andCare.Membersandcandidatesmustcomplywiththeirfiduciarydutytothosepersonsandinterestsbywhomthedutyisowed.Specifically,membersmustalwaysactforthebenefitoftheirclientsandplaceclients?interestsbeforetheirown.Murphy抯actionsindirectingtradestoCasanovaviolatethefiduciarydutyowedtoWellington&Worrel抯clients,asheappearstobeselectingCasanovaforthediscountsreceivedonpersonalsecuritiestransactions.Casanovachargeshighercommissionratesanddeliverspoorerexecutionthanotherbrokersusedbythefirm.ByusingCasanova,Murphyviolateshisfiduciarydutybyfailingtoactintheclients?bestinterest.Alternatively,thearrangementwithCedrockappearstocomplywithMurphy抯fiduciaryduty,asthefirmreceivesinvestmentresearchusedinmanagingclientportfolios(asoftdollararrangement)andachievesbetterexecutionforclienttrades.BecausethetradingarrangementwithCedrockbenefitsclients,itdoesnotviolateStandardIII(A).Question 16 #44838Youranswer:Bwasincorrect.ThecorrectanswerwasC)DoddhasmostlikelyviolatedStandardIII(B)FairDealingbygivingPhillipsanovergenerousallocationoftheoversubscribed(揾ot?newissue.Theissueisnotthatheisofferingcompensationtoaclienttoresolveadispute,butthatbyoverallocatingtheIPOsharestoPhillipsheisnottreatinghisotherclientsfairly.StandardIII(B)FairDealingrequiresthatcandidatesandmembersnotusesharesof揾otissues?asanincentivetoachievearewardorbenefit.Thebenefitinthiscaseisthatthedisputewill揼oaway.?/SPAN>Question17#44839Youranswer:Dwascorrect!杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Ifthedebtratio(TD/TA)isequalto40%andthefirmhasnopreferredstock,thepercentageofequityis1?0.40,or60%.Question54#44890Youranswer:Bwascorrect!Sharesissuedpostsplitneednotbeadjustedforthesplitastheyare搉ew?shares.Question55#448 92 Youranswer:Awascorrect!BecausebasicEPSdoesnotadjustforwarrants,theadjustmentis0.DilutedEPSusesaverageprice.SinceAP>EX,Question 56 #44893Youranswer:Dwascorrect!Aisnotnecessarilytrue.Byitself,alowreceivablesturnoverreferstotheaveragetimeittakesthecompanytocollectitsreceivables,nottothelevelofreceivables(whichwillaffect,butnotdictateitscurrentratio).Bisnotnecessarilytrue;whetherafirm抯ROAishigherthanitsROEdependsontherelationofthecostofdebttoitsROA.Cisincorrect.Justthefactthatacompanyhasahighgrossprofitmargindoesnotnecessarilymeanitwillhaveahighnetprofitmargin.Forexample,thecompanycouldhaveveryhighoperatingexpensesandendupwithalownetprofitmargin.Thecashconversioncycleis:( 365 /6) +( 365 /9)?( 365 / 12) =60 .8+40 .6? 30.4=71days.Question57#44894Youranswer:Cwascorrect!Inperiodsofrisingpricesandstableorincreasinginventoryquantities,FIFO,comparedtoLIFO,resultsinhigherworkingcapital.杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Bwascorrect!Thefourfirmconcentrationratiois35%+10% +20 %+30%=95%.TheequivalentnumberoffirmsisthereciprocaloftheHerfindahlindex.Sincethesefivefirmscomprise100%ofthemarket,theHerfindahlindexissotheequivalentnumberoffirmsisQuestion89#44 927 Youranswer:Awascorrect!Optionfreebondshavepositiveconvexityandtheeffectof(positive)convexityistoincreasethemagnitudeofthepriceincreasewhenyieldsfallandtodecreasethemagnitudeofthepricedecreasewhenyieldsrise.Question90#44 928 Youranswer:Awascorrect!Duringtherecoveryphaseofthebusinesscycle,cyclicals,commodities,andcommoditylinkedequitiesaregenerallyattractiveinvestments.Question91#44 929 Youranswer:Dwascorrect!IncreasesinkreduceP/E.IncreasesingorthedividendpayoutratioincreaseP/E.Question 92 #44930Youranswer:Dwascorrect!杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Underlyingearningsshouldbeusedinthecalculation.Thesearetransitory,nonrecurringcomponentsofearningsthatarespecifictothecompany.Also,themostrecentearningsinformationshouldbeusedinthecalculation.Thereforeweget:Question93#44931Youranswer:Awascorrect!Theriskpremiumwillbeafunctionofbusinessrisk,financialrisk,liquidityrisk,exchangeraterisk,andcountry(politicalrisk).Stocksdonotinvolvedefaultrisk.Question94#449 32 Youranswer:Bwascorrect!SemiannualcompoundrateisEndingvaluemustbe$888.94(1.0 325 )14=$1,391. 02. Question95#44933Youranswer:Bwascorrect!Thisisasupernormalgrowthstockvaluationproblem.Step1:Findthedividendsinthesupernormalgrowthperiod.D1=1.00(1 .20 )=$1 .20 ;D 2 =1 .2( 1 .2) =$1.44;D3=1.44(1.15)=$1 .65 6Step2:Usetheconstantgrowthmodeltofindthepriceattheendofperiod3.$1,391. 02 ?u>1,000.00facevalueatmaturity391. 02 ?u>315.00totalcoupons(14× 22 .50) 76. 02 杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Step3:Discountallofthecashflowsbacktotimezero.Question 96 #44934Youranswer:Cwascorrect!Usethesamedividendsand搉ormal?growthpricefromQuestion 96, excepttheperiod1dividend($1 .20 )hasalreadybeenpaid,andwediscounttheremainingtwodividendsandtheend of yearprice(P3)backtotheendofperiod1togetP1.Step1:Findthedividendsinthesupernormalgrowthperiod.D 2 =1 .2( 1 .2) =1.44;D3=1.44(1.15)=$1 .65 6Step2:Usetheconstantgrowthmodeltofindthepriceattheendofperiod3.Step3:Discountallofthecashflowsbacktotimeone.Question97#44935Youranswer:Dwascorrect!TheOASisameasureoftheyieldspreadoverTreasuryspotrateswithouttheoption.Question98#449 36 Youranswer:Cwascorrect!杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Bwascorrect!Note:Donotaddbackdepreciationwhenusingthedirectmethod.Dividendsareafinancingcashflow.Question51#44887Youranswer:Dwascorrect!freecashflow(FCF)=cashflowfromoperations?netcapitalexpendituresFCF=$800?40(purchaseofplantandequipment)+30(saleofland)=$790Question 52 #44888Youranswer:Cwascorrect!Asimplenumericalexamplecanhelp.AssumeCA=2andCL=1.ThennoteandDebtisdecreased,butequityisunchanged,soD/Eisdecreased.Question53#44889Youranswer:Cwascorrect!Sales牋+$4,000牋Cashreceivedfromcustomers牋牋+$4,000(sincenochangeinAR)Costofgoodssold牋?,000?/td>Increaseininventory牋?00?/td>Increaseinaccountspayable牋+300?/td>Othercashinputexpenses牋?00?/td>Cashpaidforinputs牋牋牋?,300Cashpaidfortaxes牋牋牋?00Cashflowfromoperations牋?/td>?1,500杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！TheeightmajorsectionsoftheCFAInstituteGlobalInvestmentPerformanceStandardsareFundamentalsofCompliance,InputData,CalculationMethodology,CompositeConstruction,Disclosures,PresentationandReporting,RealEstate,andPrivateEquity.Question18#44840Youranswer:Bwascorrect!StandardIII(C)Suitabilityrequiresthattheclientportfoliofittheclientriskandreturnobjectivesasstatedintheinvestmentpolicystatement,andthatseemstobethecasehere.Theproperfocusofriskanalysisisontheentireportfolioandneednotbeappliedonanissuebyissuebasis.ThereappearstobenoviolationofV(A)DiligenceandReasonableBasissincehispreviousanalysisindicatedtheportfoliowassuitableandhisrecordssupportedthatconclusion.Question19#44841Youranswer:Bwascorrect!Withnointerestpaidontheoriginal$5,000loan,at6%infiveyearstheloanbalancewillbe:Newloanbalance=$5,000(1. 06) 5= $6, 691.13orPV=5,000;I/Y =6 N=5;PMT=0;CPT→FV= ?6, 691.13. $6, 691.13istheloanthathastoberetiredoverthenextfiveyears.Thefinancialcalculatorsolutionis:PV =6, 691.13;I/Y =6 N=5;CPT→PMT.YouobtainPMT=?,588.45.Question20#44844Youranswer:Cwascorrect!N=4;PV=?,000;FV =6, 520 ;CPT→I/Y= 12. 99%,orQuestion21#44845Youranswer:Cwascorrect!AandBdescribeahistogram,andDdescribesafrequencypolygon.Question 22 #448 46 杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Awascorrect!holdingperiodreturn(HPR)=Question23#44847Youranswer:Cwascorrect!range=maximumvalue?minimumvalue=55?15=40Calculatethemean:Togetthemeanabsolutedeviation,sumthedeviationsaroundthemean(ignoringthesign),anddividebythenumberofobservationsNotethattheunitsofvarianceherearepercentsquared.Usingdecimalsratherthanwholepercentyields0. 025 0.Question24#44848Youranswer:Bwascorrect!Question25#44849杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question58#44895Youranswer:Awascorrect!Question59#448 96 Youranswer:Awascorrect!Question60#44897Youranswer:Dwascorrect!FIFOendinginventory=FIFOINV=LIFOINV+LIFOreserve =22 ,000+4,000=$ 26 , 000Question61#44898Youranswer:Bwascorrect!Thetotalcashflowsareequal,buttheexpensingfirmwillseelowerearlyyearprofitabilityratherthanhigherearlyyearprofitability.Question 62 #44899Youranswer:Cwascorrect!Impairmentmustberecognizedwhenthereissufficientevidencetoindicatethatthevalueofanassetcarriedonthebooksofacompanycannotberecovered.Indicatorsoflackofrecoverabilityincludeasignificantdecreaseinmarketvalue,adversechangesinlegalorbusinessconditions,substantialcostoverruns,andasignificantdeclineinanasset抯longtermlikelihoodofgeneratingprofit.100@ $21 0= $21 ,00070@ $22 5=$15,750$ 36, 750Purchases190Sales170Balance 20 @ $21 0=$4 ,20 0FIFOaftertaxprofit=LIFOaftertaxprofit+(changeinLIFOreserve)(1?t)= $2, 000+($4,000?$3,000)(1?0.4)= $2, 000+ $60 0= $2 ,60 0杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Bwascorrect!Forthepositivelyskeweddistribution,themodeislessthanthemedian,whichislessthanthemean.Question 26 #44850Youranswer:Bwasincorrect.ThecorrectanswerwasA)ThenominalincreaseinindustrialproductionisexpectedtobeThustherealchangeisexpectedtobeGiventheregressionequation,ourforecastis9,397.54=8,950+395(1.133).Question27#44851Youranswer:Awascorrect!ThefirstyearaccountreturnwasThesecondyearreturnwasThegeometricmeanis,whichisthetimeweightedreturn.Sinceonlyoneassetwasinvolved,alsogivesthetimeweightedreturn.Tocalculatethemoneyweightedreturn,usethecashflowfunctionwithCf0= ?2, 000,Cf1=?5,000,andCf2=54,000 2= 108,000,andcomputeIRR,whichis7.73%.Themoneyweightedreturnislowerbecausetheamountintheaccountwasgreaterinthesecondperiod,whenthereturnwaspoor.Question28#44858Youranswer:Dwascorrect!Thebinomialdistributionisadiscretedistribution,whilethenormaldistributionisanexampleofacontinuousdistribution.Univariateandmultivariatedistributionscanbediscreteorcontinuous.Question29#44859杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question10#448 32 Youranswer:Bwascorrect!AccordingtoStandardIV(B)AdditionalCompensationArrangements,membersandcandidatesmustobtainwrittenpermissionfromtheiremployerbeforeacceptinganofferofcompensation(fortheperformanceofworkdonefortheiremployer)inadditiontowhattheyreceivefromtheiremployerandthatiscontingentonfutureperformance.Suchcontingentadditionalcompensationisjudgedtobereasonablyexpectedtoimpairtheemployee抯independenceandobjectivity.Question11#44833Youranswer:Awasincorrect.ThecorrectanswerwasD)CompliancerequiresthatthefirmfollowlocallawanddisclosetheconflictbetweenlocallawandGIPS.Question 12 #44834Youranswer:Awascorrect!StandardIII(D)PerformancePresentationrequiresthatstatementsaboutperformancebenotonlyaccurate,butalsofairandcomplete.WhileVance抯statementmaybeaccurateinatechnicalsense,itisneitherfairnorcomplete,anditseemsintendedtomisleadprospectsaboutVance抯trackrecordinmanagingequitiesaccountsand/orselectingequitysecurities.WhilecompliancewithGIPSanditsmethodsofcompositeconstructionarerecommended,theyarenotrequiredbytheStandard.Question13#44835Youranswer:Dwascorrect!StandardV(B)CommunicationwithClientsandProspectiveClients.Briefcommunicationsmustbesupportedbybackgroundreportsordatathatcanbemadeavailabletotheclientifrequested.Drakeshouldhavegiventheclientamoredetailedanalysisoftheinvestmentwhentheclientcalledtorequestsuchinformation.DrakedidnotviolateStandardIII(C)becausehe搕horoughly?readandevaluatedtheanalysisanddeterminedthatthestructuredproductwasinlinewithhisclient抯objectivesbeforerecommendingtheproducttohisclient.Question14#448 36 杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！SchweserPrintableAnswers Book6 Exam1 AMTestID#:1 364 808Question1#447 86 Youranswer:Cwascorrect!StandardVI(C)ReferralFees.Membersandcandidatesshalldisclosetoclientsandprospectsanyconsiderationorbenefitreceivedbythememberordeliveredtoothersfortherecommendationofanyservicetotheclientorprospect.Thisallowstheclienttoevaluateanypartialityshowninmakingreferrals.Question2#44787Youranswer:Awascorrect!StandardIV(C)ResponsibilitiesofSupervisorsexplicitlystatesthatspeakingtotheemployeetodeterminetheextentoftheviolationsandreceivingassurancesthatitwillnotberepeatedisnotenough.Finleymusttakepositivestepstoinsurethattheviolationwillnotberepeatedincludingpromptlylaunchinganinvestigationandlimitingtheemployee抯activitiesand/orincreasingsupervisionoftheemployeduntiltheresultsoftheinvestigationareknown.Question3#44788Youranswer:Awascorrect!SteinviolatedStandardI(C)Misrepresentationbypresentingmaterialdevelopedbyanotherwithoutacknowledgement.Question4#44789Youranswer:Dwascorrect!StandardV(A)DiligenceandReasonableBasis.Therecommendationreflectstheconsensusofthegroupandnotnecessarilytheopinionofthememberorcandidate.Iftheconsensusopinionhasareasonablebasis,thememberdoesnothavetodissociatefromthereportbutshoulddocumentthedifferenceofopinion.Question5#44 825 杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Cwascorrect!Thisisanout of themoneycoveredcall.Thestockcangoup$2tothestrikeprice,andthenthewriterwillget$3forthepremium.Thus,themaximumprofitis$5.Question114#44953Youranswer:Dwasincorrect.ThecorrectanswerwasB)Bothstatementsareincorrect.Asyieldsrise,thevalueoftheembeddedputoptioninaputablebondincreasesand(beyondacriticalpoint)reducesthedeclineinthevalueofthebondcomparedtoasimilaroptionfreebond.Asyieldsfall,thevalueoftheembeddedputoptiondecreases,and(beyondacriticalpoint)theputablebondbehavesmuchthesameasasimilaroptionfreebondsincetheembeddedputoptionhaslittleornovalue.Question115#44954Youranswer:Bwasincorrect.ThecorrectanswerwasD)Theincomeapproachusesnetoperatingincomebeforefinancingandtaxes.Hedonicpriceestimationusessimilarpropertiestodeterminetheappropriateregressioncoefficients.Question1 16 #44955Youranswer:Dwascorrect!aftertaxcashflow=(revenue?cost?depreciation)(1?t)+depreciation(revenue?cost)(1?t)+depreciation(t)[ $25 0,000?(0.04× $25 0,000)?$15,000?($1,000,000×0.0 26 ) ](1?0.35)+(1,000,000×0.0 26 ) [( $25 0,000?$10,000?$15,000?$ 26 , 000)(0 .65 )]+$ 26 , 000=$155,350Question117#449 56 Youranswer:Bwascorrect!Historicalriskandreturndataisgenerallylimitedandnotveryeasytoobtain.Question118#44957杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Dwascorrect!Studieshavedemonstratedthatapproximately90%ofaportfolio抯returnscanbeexplainedbyitstargetassetallocations.Itisverydifficulttogenerateabnormalportfolioreturnsbymarkettimingandsecurityselectionwithinassetclasses.Question85#44 923 Youranswer:Awascorrect!Marketweightedindex:Day1:whichisscaledtoavalueof500.Day2:whichnowhastobeadjustedrelativetotheinitialbasevalueof500fromday1.Weget:Finally,thepercentagechangeisQuestion 86 #44 924 Youranswer:Awascorrect!AportfoliowithequalnumbersofsharesofeachstockintheDJIAwillmatchtheperformanceoftheindexassumingtherearenostocksplits,stockdividends,orchangesinthemakeupoftheindex.Thereturnontheindexdoesnotincludedividendpayments.Sincethereinvesteddividendswilladdtothenumberofsharesofthosestocksthatpaydividends,Gomez抯portfolioreturnwillexceedthatoftheDJIA.Question87#44 925 Youranswer:Cwascorrect!Thetopdown,threestepprocessgoesfromtheeconomytotheindustrytothefirm,inthatorder.Question88#449 26 ... 杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question79#449 16 Youranswer:Dwasincorrect.ThecorrectanswerwasC)Theintroductionofazerobeta(nosystematicrisk)portfoliowithareturnthatishigherthantheriskfreeratecanresultinastraightCMLevenwiththeassumptionthatborrowingandlendingratesaredifferent.Marginaccountsrepresentborrowing,sounlessthemarginlendingrateisthesameastheriskfreerate,thisdoesnotsolvetheproblem(akinkedCML)thatresultsfromunequalborrowingandlendingratesinthemodel.Question80#44917Youranswer:Dwascorrect!TheStandardsofPracticehaveverylittletodowithinvestmentconstraints.Question81#44918Youranswer:Awascorrect!Ariskaverseinvestorpreferslessrisktomorerisk.Thelowerthecorrelation,thegreatertheriskreduction.Thus,ariskaverseinvestorwouldmostprefertheportfoliowiththelowestcorrelationcoefficientandleastprefertheonewiththehighest.Ofthechoicesgiven,AandC抯correlationcoefficientof+0.6isthehighest.Question 82 #44919Youranswer:Bwascorrect!TheCAPMconcludesthatexpectedreturnsareapositive(linear)functionofsystematicrisk.Question83#44 920 Youranswer:Cwascorrect!TheSMLandCMLarebothlines,andbothintersecttheverticalaxisattheriskfreerate.TheSMLdescribestherisk/returntradeoffforindividualsecuritiesorportfolios,whereastheCMLdescribestherisk/returntradeoffofvariouscombinationsofthemarketportfolioandarisklessasset.Question84#44 922 杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question70#44907Youranswer:Bwascorrect! $2/ 50+0.08= 12. 0%Question71#44908Youranswer:Bwascorrect!Question 72 #44909Youranswer:Bwascorrect!Businessriskisthecombinationofsalesrisk,whichisthevariabilityofafirm'ssales,andoperatingrisk,whichistheadditionalvariabilityinoperatingearnings(EBIT)causedbyfixedoperatingcosts.Leverageisthecombinationofbusinessriskandfinancialrisk,whichistheadditionalriskcommonshareholdersmustbearwhenafirmusesfixedcostsourcesoffinancing.Question73#44910Youranswer:Dwascorrect!Sinceequityis40%ofassets,theequitymultiplieris1/0.40 =2. 5.UsingthetraditionalDuPontformula,ROE=8.7% 2. 4 2. 5= 52. 2%.Question74#44911Youranswer:Dwascorrect!g=(1?payout)(ROE)=(1?0.40)( 16% )=9 .6% 杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Dwascorrect!About68%ofallobservationsfallwithin?standarddeviationofthemean.Thus,about68%ofthevaluesfallbetween5and25.Question30#44 860 Youranswer:Bwascorrect!Thecentrallimittheoremholdsforanydistributionaslongasthesamplesizeislarge(i.e.,n>30).Question31#44 861 Youranswer:Bwascorrect!Thepopulationvarianceisknown(inthiscase100),sothestandarderrorofthesamplemeanisQuestion 32 #44 863 Youranswer:Cwascorrect!Thettestisusedwhenthesamplesizeissmall.Question33#44 864 Youranswer:Dwascorrect!Itwoulddecrease,notincrease,theprofitabilityofcorporateinvestmentprojects.Question34#44 865 Youranswer:Awascorrect!Thepotentialdepositexpansionmultiplieristhereciprocalofthereserveratio.Ifthereserveratiois20%,then1/0 .20 =5.Question35#44 866 杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question75#449 12 Youranswer:Awascorrect!Straightlinedepreciation:$14million/7= $2. 0millionAccelerateddepreciation:$14million×0.333=$4 .66 2millionQuestion 76 #44913Youranswer:Awascorrect!Sunkcostsarenottobeincludedininvestmentanalysis.Opportunitycosts,changesinnetworkingcapital,andtheproject抯impactontaxesareallrelevantvariablesindeterminingprojectcashflowforacapitalinvestment.Question77#44914Youranswer:Bwascorrect!Forthe4yearperiod,theaveragenetincomeis:($ 42, 000+$98,000+$ 56, 000+$ 56, 000)/4= $63 ,000.Theinitialbookvalueis$800,000,decliningby $20 0,000peryearuntilthefinalbookvalueis$0.Theaveragebookvalueforthisassetis:($800,000?$0) /2= $400,000.Theaverageaccountingrateofreturnis:AAR=averagenetincome/averagebookvalue= $63 ,000/$400,000=0.1575=15.75%.Question78#44915Youranswer:Cwascorrect!Regularlyreviewingperformance,independence,skills,andexperienceofexistingboardmembersisacharacteristicoftheRemunerations/CompensationCommittee,nottheAuditCommittee.AllotherchoicesarepositivecharacteristicsoftheAuditCommittee.杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Firstyearinterestis10%×$2million= $20 0,000.Firstyearprincipalpayment =23 4,919 20 0,000=$34,919.Firstyearaftertaxcashflowis[300,000 20 0,000 60 ,00035,000](10.35)34,919+ 60 ,000 =28 ,331.Remainingprincipalbalanceis2million34,919=1, 965 ,081sosecondyearinterestis1 96, 508andprincipalportionofthepaymentis234,9191 96, 508=38,411Secondyearaftertaxcashflowis[300,0001 96, 508 60 ,00035,000](10.35)38,411+ 60 ,000 =27 ,109.Includingtheproceedsofthesalethetotalsecondyearaftertaxcashflowis637,109.NPV==$ 52, 291.81Question111#44950Youranswer:Dwascorrect!Thefourfirmconcentrationratioisthesumofthemarketsharesofthefourlargestfirmsintheindustry.45% +25 %+15%+10%=95TheHerfindahlindexisthesumofthesquaresofthemarketsharesofeachofthefirmsintheindustry.0.45 2 +0 .25 2 +0.15 2 +0.10 2 +0.05 2 =0.30Question1 12 #44951Youranswer:Bwascorrect!Thisstatementiscorrectinthatthecostofaputoptionisnegative.(Theinvestorhastopayfortheflexibilityoftheputoption.)Theotherstatementscouldnotbecorrect.The搒preadoverthespotratesforaTreasurysecuritysimilartoStahl抯bond?referstoZspreadonthebond.Foracallablebond,theOAS<Zspread,sothiscouldnotbeatruestatementbecause135bp>110bp.TheoptioncostiscalculatedusingtheOASandtheZspread,notthenominalspread.Thestaticspread(orZspread)isthespreadovereachofthespotratesinagivenTreasurytermstructure,notthespreadovertheTreasury抯YTM.(Note:Weslippedinafixedincomequestionhereinthederivativessectionofthetest.CFAInstitutecandothisatanytime.Beonyourguardforthesetypesoftricks!)Question113#449 52 杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Cwascorrect!Note:Question108#44947Youranswer:Dwascorrect!Aflattermstructurecouldbeexplainedaccordingtotheliquiditypreferencetheoryasacasewhereinvestorsexpectshorttermratestodeclineslightly,coupledwithamaturitypremiumthatexactlyoffsetsthedownwardpressurecontainedininvestorexpectations.Ahumpedtermstructurecouldbeexplainedaccordingtothepureexpectationstheoryifwebelievethatforshortermaturities,investorsbelieveinterestrateswillrisealongwiththebeliefthatmediumtermrateswilldeclinealongwiththebeliefthatlongertermrateswillbestable.Thepureexpectationstheorymakesnospecificmentionofthefactthatanupwardslopingtermstructureisaconsequenceofinvestorsexpectingshorttermratestoremainunchangedforaperiodoftimefollowedbyinvestorsexpectingshorttermratestoriseforaperiodoftime.Allthistheorysaysisthatanupwardslopingtermstructurecanbeexplainedbyinvestorsbelievingthatfutureshorttermrateswillrise.Finally,theliquiditypreferencetheoryattemptstoexplainthetermstructureaccordingtotwofactors.Theseareexpectationsaboutfutureinterestratesandamaturitypremiumtocompensateforinterestraterisk.Ifthetermstructureisdeclining,thiscouldbeexplainedsimplybyinvestorexpectationsofdecliningfutureshorttermratescoupledwithamaturitypremiumthatisnotlargeenoughtooffsetthedownwardpressureoninterestratesduetoinvestorexpectations.Question109#44948Youranswer:Awascorrect!Thevariabilityofpricesingeneralissignificantlylargerthanisthevariabilityof(uncertaintyabout)dividendsandhencemanagingpriceriskisofprimaryimportance,whiletheuncertaintyofdividendsisofsecondaryimportance.Theremainingstatementsarecorrect.Question110#44949Youranswer:Cwascorrect!杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Gainsorlossesfrommarketingmarketablesecuritiestotheirmarketvalueswillreverseiftheyaresoldandarethustemporarydifferences.Theotherstatementsarecorrect.Question 66 #44903Youranswer:Awascorrect!Whenanalyzingthefirm'sincometaxdisclosures,watchforthesewarningsignals:1)Companiesthatgeneratesignificantpretaxincomeontheirfinancialstatementswhilereportinglowtaxespayable(i.e.,loweffectivetaxrates)arelikelytobeemployingaggressiveaccountingmethodsandhavelowqualityearnings.SoStatement1iscorrect .2) Restructuringchargestypicallyhavenotaxcashfloweffectsintheyeartheyarerecordedbutmayhavesignificanteffectsinfutureyearsastherestructuredoperationsandimpairedassetsaresold.SoStatement2iscorrectandChoiceAisthecorrectanswer.Ananalystmayalsolookoutforthefollowingadditionalitems:3)Adecreaseincapitalspendingmaysignalareversalofpasttemporarydifferencesrelatedtodepreciationmethods,resultinginhighertaxespayable.4)Temporarydifferencesmayreversebecauseofchangesintaxlaw,causinghighertaxespayable.Question67#44904Youranswer:Cwascorrect!Atakeorpayagreementobligatesabuyertopaythesellerofaproductorserviceaminimumamount,regardlessofwhethertheproductorserviceisdelivered.Thisistreatedasaliability,andthediscountedvaluemustbereflectedonthebuyer抯balancesheet.Question68#44905Youranswer:Cwascorrect!Cisreversed.Grossprofitisrecognizedattheinceptionforthesalestypelease.Question69#449 06 Youranswer:Bwascorrect!N =20 ;FV=1000;PV=?94;PMT =60 ;CPT→I/Y=7%kd=(7%)(1?0.4)=4 .2% 杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Thecurrentaccountmeasurestheexchangeofmerchandisegoods,theexchangeofservices,theexchangeofinvestmentincome,andunilateraltransfers(giftstoandfromothernations).Question44#44878Youranswer:Bwascorrect!Ataminimumwageabovetheequilibriumwage,therewillbeanexcesssupplyofworkers.Firmssubstituteotherproductiveresourcesforlaborandusemorethantheeconomicallyefficientamountofcapital.Theresultisincreasedunemploymentandadecreaseineconomicefficiency.Firmsmaydecreasethequalityorquantityofthenonmonetarybenefitstheypreviouslyofferedtoworkers.Question45#44880Youranswer:Bwascorrect!Ifultimatepaymentisassuredandthecostestimatesareunreliable,thecompanymustusethecompletedcontractmethodandthuscannotrecognizeprofitsuntiltheendofthecontract.Profitsinyear2arezero.Theotherstatementsaretrue.Attheendofyear3,thebalanceinthecashaccountwillbeequaltothecumulativeprofits,or10?7.5 =2. 5.Underthepercentageofcompletionmethod,thecompanywouldrecognize$1millioninprofitsinyear2Thepercentageofcompletionmethodsmoothsincome,andtheprofitsrecognizedinyear3usingthismethodare (2. 5/7.5 )2. 5=0.833.Question 46 #44881Youranswer:Dwascorrect!cashconversioncycle(CCC)=receivablesdays+inventoryprocessingdays?payablespaymentperiodSincethepayablespaymentperiodincreasesreceivablesby3.32daysandreceivablesdaysincreasesby5,CCCincreasesby1 .68 days.杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question103#44941Youranswer:Dwascorrect!DP/P=DeffectiveDiDP/P=7 .6( +0.0075)=0.057,or5.7%Question104#449 42 Youranswer:Dwascorrect!Thenominalyield(anothertermforthecouponyield)islessthantheyieldtomaturityforadiscountbond.Question105#44943Youranswer:Dwascorrect!Thekeytermhereiscouponbond.Whileaninvestorinafixedcouponbondcanusuallyeliminatepriceriskbyholdingabonduntilmaturity,thesameisnottrueforreinvestmentrisk.Thereceiptofperiodiccouponpaymentsexposestheinvestortoreinvestmentrisk.Anoncallablebondreducesreinvestmentriskbyreducingtheriskofrepayment.Thus,aninvestormostconcernedwithreinvestmentriskwouldpreferanoncallablebondtoacallablebond.Sincelowercouponbondshavelowerreinvestmentrisk,thissameinvestorwouldpreferalowercouponbondtoahighercouponbond.Aninvestorconcernedaboutreinvestmentriskismostconcernedaboutadecreasinginterestrateenvironment.Wheninterestratesdecrease,theinvestorisforcedtoreinvestcouponsandothercashflowsatalowerrate.Withalowercoupon,thisriskisless.Question1 06 #44945Youranswer:Cwascorrect!AspecialpurposevehicleisalegalentitytowhichtheassetsusedascollateralinanABSissuearesold.Thistransactionseparatesthecompanyprovidingthecollateralfromthecompanythatneedsthefinancing.Theassetstransferredtothespecialpurposevehiclearefinancialassets,notfixedassets.Question107#449 46 杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question47#44883Youranswer:Bwascorrect!Becausenetincomeisgiven,thisprobleminvolvesusingtheindirectmethod.Theinterestexpenseisignoredbecauseitisalreadydeductedbeforenetincomeiscalculated.Ignoresalesforthesamereason;netincomeincorporatessales.Question48#44884Youranswer:Awascorrect!Investingcashflowsincludebuyingandsellingequipmentandland.Thisproblemdoesnotinvolveanysuchcashflows.Question49#44885Youranswer:Bwascorrect!Totalcashflowisthedifferencebetweentheendingcashbalanceandthebeginningcashbalance.InQuestions47and48,wecalculatedcashflowfromoperationsof$12andcashflowfrominvestingof$0,soweneedtocalculatecashflowfromfinancing:Totalcashflowisthus$1 02. Iftheendingcashbalanceis $20 0,thebeginningcashbalancewas $20 0?$1 02= $98.Question50#448 86 Netincome+$100Noncashitems:depreciation +2 Changeinaccountsreceivable?0Changeininventory?0Changeinaccountspayable?0CFO$ 12 Saleofcommonstock$100Repaymentofdebt?0Financingcashflows$90杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Cwascorrect!StandardVI(B)PriorityofTransactions.Clienttransactionsmusttakeprecedenceovermembers?orcandidates?trades.Heshouldhavesubmittedhispersonaltradeorderonlyaftertradingforhisclient.StandardIII(B)FairDealingrequiresthatFarleydealfairlywithallclientswhenrecommendingsecuritiesortakinginvestmentaction.SincetheendowmentfundisFarley抯onlyaccount,hehasnotdisadvantagedanyotherclientbyonlytakingactiononthebehalfoftheendowment.Question15#44837Youranswer:Dwascorrect!StandardIII(A)Loyalty,Prudence,andCare.Membersandcandidatesmustcomplywiththeirfiduciarydutytothosepersonsandinterestsbywhomthedutyisowed.Specifically,membersmustalwaysactforthebenefitoftheirclientsandplaceclients?interestsbeforetheirown.Murphy抯actionsindirectingtradestoCasanovaviolatethefiduciarydutyowedtoWellington&Worrel抯clients,asheappearstobeselectingCasanovaforthediscountsreceivedonpersonalsecuritiestransactions.Casanovachargeshighercommissionratesanddeliverspoorerexecutionthanotherbrokersusedbythefirm.ByusingCasanova,Murphyviolateshisfiduciarydutybyfailingtoactintheclients?bestinterest.Alternatively,thearrangementwithCedrockappearstocomplywithMurphy抯fiduciaryduty,asthefirmreceivesinvestmentresearchusedinmanagingclientportfolios(asoftdollararrangement)andachievesbetterexecutionforclienttrades.BecausethetradingarrangementwithCedrockbenefitsclients,itdoesnotviolateStandardIII(A).Question 16 #44838Youranswer:Bwasincorrect.ThecorrectanswerwasC)DoddhasmostlikelyviolatedStandardIII(B)FairDealingbygivingPhillipsanovergenerousallocationoftheoversubscribed(揾ot?newissue.Theissueisnotthatheisofferingcompensationtoaclienttoresolveadispute,butthatbyoverallocatingtheIPOsharestoPhillipsheisnottreatinghisotherclientsfairly.StandardIII(B)FairDealingrequiresthatcandidatesandmembersnotusesharesof揾otissues?asanincentivetoachievearewardorbenefit.Thebenefitinthiscaseisthatthedisputewill揼oaway.?/SPAN>Question17#44839Youranswer:Dwascorrect!杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Ifthedebtratio(TD/TA)isequalto40%andthefirmhasnopreferredstock,thepercentageofequityis1?0.40,or60%.Question54#44890Youranswer:Bwascorrect!Sharesissuedpostsplitneednotbeadjustedforthesplitastheyare搉ew?shares.Question55#448 92 Youranswer:Awascorrect!BecausebasicEPSdoesnotadjustforwarrants,theadjustmentis0.DilutedEPSusesaverageprice.SinceAP>EX,Question 56 #44893Youranswer:Dwascorrect!Aisnotnecessarilytrue.Byitself,alowreceivablesturnoverreferstotheaveragetimeittakesthecompanytocollectitsreceivables,nottothelevelofreceivables(whichwillaffect,butnotdictateitscurrentratio).Bisnotnecessarilytrue;whetherafirm抯ROAishigherthanitsROEdependsontherelationofthecostofdebttoitsROA.Cisincorrect.Justthefactthatacompanyhasahighgrossprofitmargindoesnotnecessarilymeanitwillhaveahighnetprofitmargin.Forexample,thecompanycouldhaveveryhighoperatingexpensesandendupwithalownetprofitmargin.Thecashconversioncycleis:( 365 /6) +( 365 /9)?( 365 / 12) =60 .8+40 .6? 30.4=71days.Question57#44894Youranswer:Cwascorrect!Inperiodsofrisingpricesandstableorincreasinginventoryquantities,FIFO,comparedtoLIFO,resultsinhigherworkingcapital.杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Bwascorrect!Thefourfirmconcentrationratiois35%+10% +20 %+30%=95%.TheequivalentnumberoffirmsisthereciprocaloftheHerfindahlindex.Sincethesefivefirmscomprise100%ofthemarket,theHerfindahlindexissotheequivalentnumberoffirmsisQuestion89#44 927 Youranswer:Awascorrect!Optionfreebondshavepositiveconvexityandtheeffectof(positive)convexityistoincreasethemagnitudeofthepriceincreasewhenyieldsfallandtodecreasethemagnitudeofthepricedecreasewhenyieldsrise.Question90#44 928 Youranswer:Awascorrect!Duringtherecoveryphaseofthebusinesscycle,cyclicals,commodities,andcommoditylinkedequitiesaregenerallyattractiveinvestments.Question91#44 929 Youranswer:Dwascorrect!IncreasesinkreduceP/E.IncreasesingorthedividendpayoutratioincreaseP/E.Question 92 #44930Youranswer:Dwascorrect!杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Underlyingearningsshouldbeusedinthecalculation.Thesearetransitory,nonrecurringcomponentsofearningsthatarespecifictothecompany.Also,themostrecentearningsinformationshouldbeusedinthecalculation.Thereforeweget:Question93#44931Youranswer:Awascorrect!Theriskpremiumwillbeafunctionofbusinessrisk,financialrisk,liquidityrisk,exchangeraterisk,andcountry(politicalrisk).Stocksdonotinvolvedefaultrisk.Question94#449 32 Youranswer:Bwascorrect!SemiannualcompoundrateisEndingvaluemustbe$888.94(1.0 325 )14=$1,391. 02. Question95#44933Youranswer:Bwascorrect!Thisisasupernormalgrowthstockvaluationproblem.Step1:Findthedividendsinthesupernormalgrowthperiod.D1=1.00(1 .20 )=$1 .20 ;D 2 =1 .2( 1 .2) =$1.44;D3=1.44(1.15)=$1 .65 6Step2:Usetheconstantgrowthmodeltofindthepriceattheendofperiod3.$1,391. 02 ?u>1,000.00facevalueatmaturity391. 02 ?u>315.00totalcoupons(14× 22 .50) 76. 02 杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Step3:Discountallofthecashflowsbacktotimezero.Question 96 #44934Youranswer:Cwascorrect!Usethesamedividendsand搉ormal?growthpricefromQuestion 96, excepttheperiod1dividend($1 .20 )hasalreadybeenpaid,andwediscounttheremainingtwodividendsandtheend of yearprice(P3)backtotheendofperiod1togetP1.Step1:Findthedividendsinthesupernormalgrowthperiod.D 2 =1 .2( 1 .2) =1.44;D3=1.44(1.15)=$1 .65 6Step2:Usetheconstantgrowthmodeltofindthepriceattheendofperiod3.Step3:Discountallofthecashflowsbacktotimeone.Question97#44935Youranswer:Dwascorrect!TheOASisameasureoftheyieldspreadoverTreasuryspotrateswithouttheoption.Question98#449 36 Youranswer:Cwascorrect!杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Bwascorrect!Note:Donotaddbackdepreciationwhenusingthedirectmethod.Dividendsareafinancingcashflow.Question51#44887Youranswer:Dwascorrect!freecashflow(FCF)=cashflowfromoperations?netcapitalexpendituresFCF=$800?40(purchaseofplantandequipment)+30(saleofland)=$790Question 52 #44888Youranswer:Cwascorrect!Asimplenumericalexamplecanhelp.AssumeCA=2andCL=1.ThennoteandDebtisdecreased,butequityisunchanged,soD/Eisdecreased.Question53#44889Youranswer:Cwascorrect!Sales牋+$4,000牋Cashreceivedfromcustomers牋牋+$4,000(sincenochangeinAR)Costofgoodssold牋?,000?/td>Increaseininventory牋?00?/td>Increaseinaccountspayable牋+300?/td>Othercashinputexpenses牋?00?/td>Cashpaidforinputs牋牋牋?,300Cashpaidfortaxes牋牋牋?00Cashflowfromoperations牋?/td>?1,500杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！TheeightmajorsectionsoftheCFAInstituteGlobalInvestmentPerformanceStandardsareFundamentalsofCompliance,InputData,CalculationMethodology,CompositeConstruction,Disclosures,PresentationandReporting,RealEstate,andPrivateEquity.Question18#44840Youranswer:Bwascorrect!StandardIII(C)Suitabilityrequiresthattheclientportfoliofittheclientriskandreturnobjectivesasstatedintheinvestmentpolicystatement,andthatseemstobethecasehere.Theproperfocusofriskanalysisisontheentireportfolioandneednotbeappliedonanissuebyissuebasis.ThereappearstobenoviolationofV(A)DiligenceandReasonableBasissincehispreviousanalysisindicatedtheportfoliowassuitableandhisrecordssupportedthatconclusion.Question19#44841Youranswer:Bwascorrect!Withnointerestpaidontheoriginal$5,000loan,at6%infiveyearstheloanbalancewillbe:Newloanbalance=$5,000(1. 06) 5= $6, 691.13orPV=5,000;I/Y =6 N=5;PMT=0;CPT→FV= ?6, 691.13. $6, 691.13istheloanthathastoberetiredoverthenextfiveyears.Thefinancialcalculatorsolutionis:PV =6, 691.13;I/Y =6 N=5;CPT→PMT.YouobtainPMT=?,588.45.Question20#44844Youranswer:Cwascorrect!N=4;PV=?,000;FV =6, 520 ;CPT→I/Y= 12. 99%,orQuestion21#44845Youranswer:Cwascorrect!AandBdescribeahistogram,andDdescribesafrequencypolygon.Question 22 #448 46 杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Awascorrect!holdingperiodreturn(HPR)=Question23#44847Youranswer:Cwascorrect!range=maximumvalue?minimumvalue=55?15=40Calculatethemean:Togetthemeanabsolutedeviation,sumthedeviationsaroundthemean(ignoringthesign),anddividebythenumberofobservationsNotethattheunitsofvarianceherearepercentsquared.Usingdecimalsratherthanwholepercentyields0. 025 0.Question24#44848Youranswer:Bwascorrect!Question25#44849杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question58#44895Youranswer:Awascorrect!Question59#448 96 Youranswer:Awascorrect!Question60#44897Youranswer:Dwascorrect!FIFOendinginventory=FIFOINV=LIFOINV+LIFOreserve =22 ,000+4,000=$ 26 , 000Question61#44898Youranswer:Bwascorrect!Thetotalcashflowsareequal,buttheexpensingfirmwillseelowerearlyyearprofitabilityratherthanhigherearlyyearprofitability.Question 62 #44899Youranswer:Cwascorrect!Impairmentmustberecognizedwhenthereissufficientevidencetoindicatethatthevalueofanassetcarriedonthebooksofacompanycannotberecovered.Indicatorsoflackofrecoverabilityincludeasignificantdecreaseinmarketvalue,adversechangesinlegalorbusinessconditions,substantialcostoverruns,andasignificantdeclineinanasset抯longtermlikelihoodofgeneratingprofit.100@ $21 0= $21 ,00070@ $22 5=$15,750$ 36, 750Purchases190Sales170Balance 20 @ $21 0=$4 ,20 0FIFOaftertaxprofit=LIFOaftertaxprofit+(changeinLIFOreserve)(1?t)= $2, 000+($4,000?$3,000)(1?0.4)= $2, 000+ $60 0= $2 ,60 0杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Bwascorrect!Forthepositivelyskeweddistribution,themodeislessthanthemedian,whichislessthanthemean.Question 26 #44850Youranswer:Bwasincorrect.ThecorrectanswerwasA)ThenominalincreaseinindustrialproductionisexpectedtobeThustherealchangeisexpectedtobeGiventheregressionequation,ourforecastis9,397.54=8,950+395(1.133).Question27#44851Youranswer:Awascorrect!ThefirstyearaccountreturnwasThesecondyearreturnwasThegeometricmeanis,whichisthetimeweightedreturn.Sinceonlyoneassetwasinvolved,alsogivesthetimeweightedreturn.Tocalculatethemoneyweightedreturn,usethecashflowfunctionwithCf0= ?2, 000,Cf1=?5,000,andCf2=54,000 2= 108,000,andcomputeIRR,whichis7.73%.Themoneyweightedreturnislowerbecausetheamountintheaccountwasgreaterinthesecondperiod,whenthereturnwaspoor.Question28#44858Youranswer:Dwascorrect!Thebinomialdistributionisadiscretedistribution,whilethenormaldistributionisanexampleofacontinuousdistribution.Univariateandmultivariatedistributionscanbediscreteorcontinuous.Question29#44859杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question10#448 32 Youranswer:Bwascorrect!AccordingtoStandardIV(B)AdditionalCompensationArrangements,membersandcandidatesmustobtainwrittenpermissionfromtheiremployerbeforeacceptinganofferofcompensation(fortheperformanceofworkdonefortheiremployer)inadditiontowhattheyreceivefromtheiremployerandthatiscontingentonfutureperformance.Suchcontingentadditionalcompensationisjudgedtobereasonablyexpectedtoimpairtheemployee抯independenceandobjectivity.Question11#44833Youranswer:Awasincorrect.ThecorrectanswerwasD)CompliancerequiresthatthefirmfollowlocallawanddisclosetheconflictbetweenlocallawandGIPS.Question 12 #44834Youranswer:Awascorrect!StandardIII(D)PerformancePresentationrequiresthatstatementsaboutperformancebenotonlyaccurate,butalsofairandcomplete.WhileVance抯statementmaybeaccurateinatechnicalsense,itisneitherfairnorcomplete,anditseemsintendedtomisleadprospectsaboutVance抯trackrecordinmanagingequitiesaccountsand/orselectingequitysecurities.WhilecompliancewithGIPSanditsmethodsofcompositeconstructionarerecommended,theyarenotrequiredbytheStandard.Question13#44835Youranswer:Dwascorrect!StandardV(B)CommunicationwithClientsandProspectiveClients.Briefcommunicationsmustbesupportedbybackgroundreportsordatathatcanbemadeavailabletotheclientifrequested.Drakeshouldhavegiventheclientamoredetailedanalysisoftheinvestmentwhentheclientcalledtorequestsuchinformation.DrakedidnotviolateStandardIII(C)becausehe搕horoughly?readandevaluatedtheanalysisanddeterminedthatthestructuredproductwasinlinewithhisclient抯objectivesbeforerecommendingtheproducttohisclient.Question14#448 36 杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！SchweserPrintableAnswers Book6 Exam1 AMTestID#:1 364 808Question1#447 86 Youranswer:Cwascorrect!StandardVI(C)ReferralFees.Membersandcandidatesshalldisclosetoclientsandprospectsanyconsiderationorbenefitreceivedbythememberordeliveredtoothersfortherecommendationofanyservicetotheclientorprospect.Thisallowstheclienttoevaluateanypartialityshowninmakingreferrals.Question2#44787Youranswer:Awascorrect!StandardIV(C)ResponsibilitiesofSupervisorsexplicitlystatesthatspeakingtotheemployeetodeterminetheextentoftheviolationsandreceivingassurancesthatitwillnotberepeatedisnotenough.Finleymusttakepositivestepstoinsurethattheviolationwillnotberepeatedincludingpromptlylaunchinganinvestigationandlimitingtheemployee抯activitiesand/orincreasingsupervisionoftheemployeduntiltheresultsoftheinvestigationareknown.Question3#44788Youranswer:Awascorrect!SteinviolatedStandardI(C)Misrepresentationbypresentingmaterialdevelopedbyanotherwithoutacknowledgement.Question4#44789Youranswer:Dwascorrect!StandardV(A)DiligenceandReasonableBasis.Therecommendationreflectstheconsensusofthegroupandnotnecessarilytheopinionofthememberorcandidate.Iftheconsensusopinionhasareasonablebasis,thememberdoesnothavetodissociatefromthereportbutshoulddocumentthedifferenceofopinion.Question5#44 825 杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Cwascorrect!Thisisanout of themoneycoveredcall.Thestockcangoup$2tothestrikeprice,andthenthewriterwillget$3forthepremium.Thus,themaximumprofitis$5.Question114#44953Youranswer:Dwasincorrect.ThecorrectanswerwasB)Bothstatementsareincorrect.Asyieldsrise,thevalueoftheembeddedputoptioninaputablebondincreasesand(beyondacriticalpoint)reducesthedeclineinthevalueofthebondcomparedtoasimilaroptionfreebond.Asyieldsfall,thevalueoftheembeddedputoptiondecreases,and(beyondacriticalpoint)theputablebondbehavesmuchthesameasasimilaroptionfreebondsincetheembeddedputoptionhaslittleornovalue.Question115#44954Youranswer:Bwasincorrect.ThecorrectanswerwasD)Theincomeapproachusesnetoperatingincomebeforefinancingandtaxes.Hedonicpriceestimationusessimilarpropertiestodeterminetheappropriateregressioncoefficients.Question1 16 #44955Youranswer:Dwascorrect!aftertaxcashflow=(revenue?cost?depreciation)(1?t)+depreciation(revenue?cost)(1?t)+depreciation(t)[ $25 0,000?(0.04× $25 0,000)?$15,000?($1,000,000×0.0 26 ) ](1?0.35)+(1,000,000×0.0 26 ) [( $25 0,000?$10,000?$15,000?$ 26 , 000)(0 .65 )]+$ 26 , 000=$155,350Question117#449 56 Youranswer:Bwascorrect!Historicalriskandreturndataisgenerallylimitedandnotveryeasytoobtain.Question118#44957杨帆13818157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Dwascorrect!Studieshavedemonstratedthatapproximately90%ofaportfolio抯returnscanbeexplainedbyitstargetassetallocations.Itisverydifficulttogenerateabnormalportfolioreturnsbymarkettimingandsecurityselectionwithinassetclasses.Question85#44 923 Youranswer:Awascorrect!Marketweightedindex:Day1:whichisscaledtoavalueof500.Day2:whichnowhastobeadjustedrelativetotheinitialbasevalueof500fromday1.Weget:Finally,thepercentagechangeisQuestion 86 #44 924 Youranswer:Awascorrect!AportfoliowithequalnumbersofsharesofeachstockintheDJIAwillmatchtheperformanceoftheindexassumingtherearenostocksplits,stockdividends,orchangesinthemakeupoftheindex.Thereturnontheindexdoesnotincludedividendpayments.Sincethereinvesteddividendswilladdtothenumberofsharesofthosestocksthatpaydividends,Gomez抯portfolioreturnwillexceedthatoftheDJIA.Question87#44 925 Youranswer:Cwascorrect!Thetopdown,threestepprocessgoesfromtheeconomytotheindustrytothefirm,inthatorder.Question88#449 26 ...
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Tài liệu Báo cáo Y học: Kinetic properties of bifunctional 6-phosphofructo-2-kinase/ fructose-2,6-bisphosphatase from spinach leaves pdf
... FEBS 20 02 Spinach 6PF2K/Fru -2 ,6- P 2 ase (Eur. J. Biochem. 26 9 ) 127 32mMFru -6- P,5mMKH 2 PO4,5mMdithiothreitol,2mgÆmL)1BSA and 20 mMKF, i n a final volume of 20 0 lL. The assay for Fru -2 ,6- P 2 ase ... 1 865 27 5074, Tel.: +44 1 865 27 5000,E-mail: nick.kruger@plants.ox.ac.ukAbbreviations:Fru -2 ,6- P 2 , fructose 2 ,6- bisphosphate; Fru -2 ,6- P 2 ase,fructose -2 ,6- bisphosphatase; Fru -6- P, fructose 6- phosphate; ... . Biol. 59 , 315–395.Ó FEBS 20 02 Spinach 6PF2K/Fru -2 ,6- P 2 ase (Eur. J. Biochem. 26 9 ) 127 7Kinetic properties of bifunctional 6- phosphofructo -2- kinase/fructose -2 ,6- bisphosphatase from spinach...
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The Man Who Laughs Victor Hugo Part 2 Book 6 Chapter 2 ppsx
... the chirping of birds, the swearing of cats, the wailings of children at the breast. The indistinct tones of drunken men were to be heard, and the growls of dogs under the feet of people who ... out of which their toes are peeping, take advantage of the circumstance to rest their feet on the shoulders of those who are in front of them, causing the ladies to remark that the soles of ... part at which is the head of the metatarsal bones. Show more of your hands and less of your feet. I perceive scamps who plunge their ingenious fists into the pockets of their foolish neighbours....
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English skills book 6 answers
... of bears 2. A of chickens 3. A of birds 4. A of geese 5. A of elephants 6. A of rabbits 7. A of insects 8. A of whales 9. A of herring10. A of monkeys11. A of ... eensder 16. gestgused 17. nwarde 18. lleyed 19. oarred 20 . finomred 21 . mgrubedl 22 . clexaiedm 23 . plexanied 24 . feconseds 25 . wishpeder 26 . asnrlde 27 . ttmueder 28 . amoedn 29 . urmedurm ... 19. guard, gaurd 20 . heroe, hero 21 . humor, humour 22 . interested, interrested 23 . jelous, jealous 24 . meant, ment 25 . minute, minite 26 . prove, proove alreadyaltogetheramountArcticbeggarbelievebeautifulbicyclecarefulchiefcenturydieddisappearexceptexperiencefamilyfortyfriendguardherohumourinterestedjealousmeantminuteprove...
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1081 question answers of the cfa exam level 1
... 4.51% * 7.88% * 12. 21% * 30.00% * 6. 61% That answer is incorrect. Correct answer: 6. 61% The calculation is as follows: ( 36/ 10)^(1 /20 )-1=0. 066 1 Which of the following ... 76, 000 People above age 16: 83,000 The labor force participation rate, the unemployment rate and employment/population ratio are: * 91.57%; 17.11%; 63 % * 83%; 32. 89%; 63 % * 76% ; 82. 89%; ... 76, 000. The unemployment rate is defined as the fraction of the labor force unemployed. In this case, ( 76 - 63 )/ 76 = 17.11%. The labor force participation rate is defined as the fraction of...
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A study on some major factors affecting English learning of grade 6 ethnic minority students of a mountainous secondary school to help them learn better
... school is not very high. 3.4.1 .2. Students’ personality characteristicsQuestion 2 a b c d e f g hFrequency 6 4 9 9 15 12 5 10% 12 8 18 18 30 24 10 20 Table 2: Students’ personality characteristics(a: ... feeling for English as a subject. 2. 3 .6. Environment and context of learning 2. 3 .6. 1. Textbooks Textbooks are key components in most language program. Much of the language teaching that occurs ... environment and context of learning. 2. 2. Definitions of language acquisition“Language acquisition is one of the most impressive and fascinating aspects of human development” (Lightbown, P.M...
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Revision of E 6(Unit 9,10,11)
... sinh khèi 6 1NguyÔn ViÕt Thu©n- Trêng THCS D¬ng Quang- MÜ Hµo - Hng YªnA B1.a packet of 2. a cup of 3.a glass of 4.a kilo of 5.a tube of 6. a bottle of 7.a bar of 8.a box of 9.a can of 10. a ... kilos. 6. bar of soap/ she want/ two bars7.toothpaste/Lan need/ a tube.8.milk/Ba want/ a litre.IV.Put the questions for underlined parts in the following sentences.1.They want two bottles of water. 2. His ... want two bottles of water. 2. His sister needs some oranges.3.They would like three apples.4.Miss Nga feels very tired.5.There is some iced coffee to drink after dinner. 6. You can go to the supermarket...
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Test of unit 6+key
... campsite, and many people believe that camping (64 ) __________ youngsters feel more (65 ) ___________. 61 . A. in which B. in where C. at which D. on which 2 SCHOO L OUTD OOR A CTIV IT IE S I. ... after the final exam. A. in B. on C. at D. with 22 . We are going on a _____________ to Da Lat next week. A. three day trip B. three-days trip C. three-day trip D. three days trip 23 . I’m afraid ... go D. to going 24 . All of my friends _____________ for the same job. A. intended B. requested C. referred D. applied 25 . We are going to ____________ good weather with lots of sunshine. ...
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Từ khóa: ccna exploration 4 0 routing protocols and concepts chapter 6 exam answersccna exploration routing protocols and concepts chapter 6 exam answerstable 6 14 a cross tabulation of book prices bytable 6 14 a cross tabulation of book prices by publisherpractice exam 2 answers and explanationsas of java 6content of book meaningcontent of book covercontent of book you can wincontent of book keepingcontent of book reviewcontent of book reportfounder of book my showcoast guard rules of the road exam questionsjava programming language java se 6 examBáo cáo thực tập tại nhà thuốc tại Thành phố Hồ Chí Minh năm 2018chuyên đề điện xoay chiều theo dạngMột số giải pháp nâng cao chất lượng streaming thích ứng video trên nền giao thức HTTPđề thi thử THPTQG 2019 toán THPT chuyên thái bình lần 2 có lời giảiGiáo án Sinh học 11 bài 13: Thực hành phát hiện diệp lục và carôtenôitĐỒ ÁN NGHIÊN CỨU CÔNG NGHỆ KẾT NỐI VÔ TUYẾN CỰ LY XA, CÔNG SUẤT THẤP LPWANĐỒ ÁN NGHIÊN CỨU CÔNG NGHỆ KẾT NỐI VÔ TUYẾN CỰ LY XA, CÔNG SUẤT THẤP LPWANPhối hợp giữa phòng văn hóa và thông tin với phòng giáo dục và đào tạo trong việc tuyên truyền, giáo dục, vận động xây dựng nông thôn mới huyện thanh thủy, tỉnh phú thọPhát triển mạng lưới kinh doanh nước sạch tại công ty TNHH một thành viên kinh doanh nước sạch quảng ninhPhát hiện xâm nhập dựa trên thuật toán k meansNghiên cứu về mô hình thống kê học sâu và ứng dụng trong nhận dạng chữ viết tay hạn chếNghiên cứu khả năng đo năng lượng điện bằng hệ thu thập dữ liệu 16 kênh DEWE 5000Định tội danh từ thực tiễn huyện Cần Giuộc, tỉnh Long An (Luận văn thạc sĩ)Tìm hiểu công cụ đánh giá hệ thống đảm bảo an toàn hệ thống thông tinThơ nôm tứ tuyệt trào phúng hồ xuân hươngGiáo án Sinh học 11 bài 14: Thực hành phát hiện hô hấp ở thực vậtTrách nhiệm của người sử dụng lao động đối với lao động nữ theo pháp luật lao động Việt Nam từ thực tiễn các khu công nghiệp tại thành phố Hồ Chí Minh (Luận văn thạc sĩ)HIỆU QUẢ CỦA MÔ HÌNH XỬ LÝ BÙN HOẠT TÍNH BẰNG KIỀMTÁI CHẾ NHỰA VÀ QUẢN LÝ CHẤT THẢI Ở HOA KỲQUẢN LÝ VÀ TÁI CHẾ NHỰA Ở HOA KỲ