economics

CFA Level 2 – Portfolio Management, Session 18 – Reading 61 (Practice Questions, Sample Questions) 1. Which of the following are least likely key assumptions of the CAPM? A)Investors can borrow and lend at the risk-free rate.B)Investors throughout the world have identical consumption baskets.C)Unlimited short selling is allowed with full access to short-sale proceeds Explanation […]

CFA Level 2 – Fixed Income Session 15-Reading 58, Asset-Backed Sector of the Bond Market-LOS c (Notes, Practice Questions, Sample Questions) 1. Which of the following is NOT a feature of an asset-backed security backed by non-amortizing assets? A) During a lockout period, principal payments are not distributed to the bondholders.B) The composition of the […]

CFA Level 2 – Equity, Session 11-Reading 42 Discounted Dividend Valuation – LOS l (Practice Questions, Sample Questions) 1. An analyst has forecasted dividend growth for Triple Crown, Inc., to be 8% for the next two years, declining to 5% over the following three years, and then remaining at 5% thereafter. If the current dividend […]

CFA Level 2 – Ethical and Professional Standards, Session 1 – Reading 4 – LOS b (Notes, Practice Questions, Sample Questions) 1. At Brown Investment Analysis Inc., all analysts are required to submit a draft copy of all research reports before certain approved portions of the reports are shared or discussed with the company that […]

CFA Level 1 – Portfolio Management, Session 12 – Reading 53 – LOS e Portfolio Risk and Return (Notes, Practice Questions, Sample Questions) 1. The expected rate of return is 1.5 times the 16% expected rate of return from the market. What is the beta if the risk free rate is 8%? A) 3.B) 2.C) […]

CFA Level 2 – Ethical and Standards, Session 1 – Reading 3 CFA Institute Soft Dollar Standards – LOS b (Practice Questions, Sample Questions) 1. Sharon Fischer manages an equity mutual fund, and she uses soft dollars generated on this account to obtain municipal bond research for an associate whose fund is small and does […]

CFA Level 2 – Fixed Income, Session 15-Reading 58 Asset-Backed Sector of the Bond Market-LOS f (Practice Questions, Sample Questions) 1. Which of the following statements regarding collateralized debt obligations (CDOs) is least accurate? A) The senior tranche is usually paid a floating rate.B) Mezzanine tranches receive a fixed rate.C) Interest rate swaps are rarely […]

CFA Level 2 – Equity, Session 11-Reading 42 Discounted Dividend Valuation – LOS g (Practice Questions, Sample Questions) 1. What is the value of a fixed-rate perpetual preferred share (par value $100) with a dividend rate of 7.0% and a required return of 9.0%? A) $71.B) $56.C) $78. [The value of the preferred is $78: […]

CFA Level 2 – Quantitative Methods, Session 3 – Reading 12 Multiple Regression and Issues in Regression Analysis – LOS l (Practice Questions, Sample Questions) 1. An analyst is building a regression model which returns a qualitative dependant variable based on a probability distribution. This is least likely a: A) probit model.B) logit model.C) discriminant […]

CFA Level 2 – Portfolio Management, Session 18-Reading 69 The Theory of Active Portfolio Management-LOS a (Practice Questions, Sample Questions) 1. Gemini Investment Management Company (GIMC) assumes markets will remain at equilibrium indefinitely. GIMC defines security analysis as the examination of factors affecting the value of individual securities. GIMC defines asset allocation as the examination […]