... 杨 13 818 157537CFA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#452 46 Youranswer:Bwascorrect!whereristhenominalriskfreerate.Hence,ThenominalrateintheU.S.is5%=2+3.TheresultisthatUsing (1. 02) (1. 03) ?1= 0.0506fortheU.S.nominalrateproducesaresultof4 .12 %.Question 36 #45247Youranswer:Cwascorrect!OpenmarketoperationsaretheU.S.FederalReserve抯mostoftenusedtoolforchangingthemoneysupply.Question37#45248Youranswer:Dwascorrect!Thedemandforlaborisaderiveddemand.Whenthedemandforthefinalgoodorserviceincreases,thepriceofthatfinalgoodorserviceincreases.Thatincreaseinpricewillleadtothefirmemployingmoreoftheresourcesusedinproductionateachresourceprice,includinglabor.Question38#45249Youranswer:Awascorrect!Intheshortrun,anincreaseinthemoneysupplywillincreaseaggregatedemand.Thenewshortrunequilibriumwillbeatahigherpricelevelandagreaterlevelofrealoutput(GDP).Question39#45250Youranswer:Bwascorrect!杨 13 818 157537CFA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#45297Youranswer:Dwascorrect!Astopbuyorderisaconditionalmarketorderbywhichaninvestordirectsthepurchaseofastockifitrisestoacertainprice.Stopbuysareplacedabovethecurrentmarketprice.Limitorderscanhavemarketpriceasthelimit,usedwhenlackofliquidityisaconcern.Question 86 #45298Youranswer:Dwascorrect!Theshortsellerhopesthatthecurrentpriceistoohighandhopesthatitwillfallinthefuture.However,notradingruleexiststhatrequirestheshortsellertosubsequentlyreplacetheborrowedstockatapricelowerthanthepriceatwhichheorshesoldthestock.Question87#45299Youranswer:Bwascorrect!ThepriceweightedindexonDecember 31, 2005equalsandonDecember 31, 2006equalsTheoneyearholdingperiodreturnisYearDif.Stock1Dif.Stock2CrossProduct99400007??5 01 ?1 5?5杨 13 818 157537CFA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 #45327Youranswer:Bwascorrect!Thecleanpriceofthebondisthequotedprice,89 .14 %ofparvalue,whichis$8 91. 40.Question107#45328Youranswer:Dwascorrect!Resettinginterestratesmakesthebondless,notmore,susceptibletointerestratechanges.Question108#45329Youranswer:Dwascorrect!Whentheforeigncurrencyappreciates,eachforeigncurrencydenominatedcashflowbuysmoredomesticcurrencyunits梚ncreasingthedomesticcurrencyreturnfromtheinvestment.Theappreciationoftheforeignassetbenefitstheinvestoraswell.Question109#453 31 Youranswer:Dwascorrect!Forwardsaresubjecttodefaultrisk,butfuturesarenot.Forwardsareprivatecontracts,butfuturesareexchangetraded.Forwardsareindividualizedcontracts,butfuturesarestandardized.Question 110 #45332Youranswer:Cwascorrect!ChoiceAisincorrectbecausespeculatorsenterthefuturesmarketinpursuitofprofit,acceptingriskintheendeavor.杨 13 818 157537CFA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 $10 tobereceivedintwoyears.FV =10 ;N=2;I/Y =17 ;CPT→PV=$7. 31. Question 91 #45303Youranswer:Dwascorrect!Theforecastyearendprice,P,is:Question92#45304Youranswer:Dwascorrect!Thisindustryappearstobeintherapidacceleratinggrowthphase.Thisphaseischaracterizedbythedevelopmentofnewproductsandrapiddemandgrowth.Thereislimitedcompetition,andsalesgrowthandprofitmarginsarehighandaccelerating.Question93#45305Youranswer:Awascorrect!Supplyanddemandaregovernedbymanyfactors,bothrationalandirrational.Question94#45307Youranswer:Bwascorrect!Specifictradingrulesrequiremuchsubjectivejudgment.杨 13 818 157537CFA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#45255Youranswer:Bwascorrect!Anaturalmonopolymayexistwheneconomiesofscalearegreat.Thelargeeconomiesofscalemakeitinefficienttohavemanysmallproducers.Question45#452 56 Youranswer:Bwascorrect!Extraordinaryitemsareunusualandinfrequentitemsthatarereportedseparately,netoftax揵elowtheline.?Question 46 #45257Youranswer:Bwascorrect!Thisisthedirectmethod,whichstartsatthetopoftheincomestatementwithsalesandthenworkswiththeindividualcomponentsofnetincomedirectlyrelatedtocashflows.Question47#45258Netsales+ 1, 200Accountsreceivable(down)+25Cashcollectedfromcustomers+ 1, 225Costofgoodssold?nbsp; 65 0Inventory(up)?nbsp; 10 0Accountspayable(up)+50Cashpaymentsforinputs?nbsp;700Cashinterestpaid?nbsp;45Cashinterestreceived+20Cashflowfromoperations+$500杨 13 818 157537CFA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#452 16 Youranswer:Awascorrect!StandardI(C)Misrepresentation.JameshasactedinappropriatelyinaskingJonestoplagiarizethereportandmayhaveviolatedseveralStandards,includingStandardIV(C)ResponsibilitiesofSupervisors.However,hehasnotviolatedtheprohibitionagainstplagiarisminStandardI(C).Jones,ontheotherhand,evenifactingontherequestofhersupervisor,willviolateStandardI(C)Misrepresentation.Makingminorchangestoareportdoesnotmakeityourown.Question6#45 217 Youranswer:Awascorrect!AccordingtoStandardII(B)MarketManipulation,membersandcandidatesshouldnotengageinanypracticethatwouldartificiallyinflatetradingvolumeordistortprices.However,thisStandarddoesnotprohibittransactionsdonefortaxpurposes.Inthiscase,therewasnointenttomisleadmarketparticipantsastothestockpriceofSafetyAirlines,andthetradeswereundertakentotakeadvantageofalegitimatetaxstrategy.ThustherehasbeennoviolationofStandardII(B)oranyotherStandard.Question7#45 218 Youranswer:Dwascorrect!StandardI(B)IndependenceandObjectivityallowsinvestorpaidresearchbutrequiresthatmembersandcandidateslimitthetypeofcompensationtheyacceptforwritingaresearchreportsothatitisnotdependentontheconclusionsoftheresearchreport.Bestpracticeisforanalyststoonlyacceptaflatfeeforsuchcompanypaidresearchreports.Suchresearchshouldalsoincludecompletedisclosureofthenatureofthecompensationreceivedforwritingsuchareportsothatinvestorswillnotbemisledastotherelationshipbetweentheanalystandthecompany.杨 13 818 157537CFA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 $12 0,whichwasacashoutflow.Question48#45259Youranswer:Cwascorrect!Question49#45 260 Youranswer:Cwascorrect!Whenusingthedirectmethodofcalculatingoperatingcashflows,depreciationandamortizationarenot揳ddedback?(tonetincome)becausewedon抰beginwithnetincomeunderthedirectmethod.Depreciationandamortizationarenoncashchangesandarenotusedunderthedirectmethod.Theotherstatementsaretrue.Interestpaymentsondebtaffectcashflowfromoperations.Whenusingtheindirectmethod,ananalystshouldaddanylossesonsalesoffixedassetstonetincomesincetheyarenotoperatingcashflows.Question50#45 2 61 Youranswer:Dwascorrect!Inaperiodofrisingprices,LIFOresultsinhigherCOGS,lowertaxes,lowernetincome,lowerinventorybalances,lowerworkingcapital,andhighercashflowsduetolesstaxespaidout.Inafallingpriceenvironment,itisthereverse.Also,FIFOinventoryleadstooppositeresultsforbothrisingandfallingprices.Question 51 #45 262 Youranswer:Awascorrect!Paiddividend?5Saleofstock+275Retireddebt?25Financingcashflow +12 5杨 13 818 157537CFA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#45224Youranswer:Cwascorrect!UndertheCodeandStandards,Marshallhasanobligationtodisclosethatshereceivesspecialcompensationbasedontheamountofclienttradingvolume.StandardVI(A)DisclosureofConflictsrequiresmemberstodisclosetoclientsandprospectsallmattersthatcouldpotentiallyimpairthemember抯abilitytomakeinvestmentdecisionsthatare(andtogiveinvestmentadvicethatis)objectiveandunbiased.Question14#45225Youranswer:Bwascorrect!StandardVI(A)DisclosureofConflicts.Matlockmustdisclose (1) specialrelationships梔irectorshipsandconsultancies,(2)investmentbanking,(3)underwritingandfinancialrelationships,(4)brokerdealermarketmakingactivities,and(5)materialbeneficialownership.ThefactthatMatlock抯sonworksforKingCompanyisnotaconflictrequiringdisclosuretoclientsandprospectssincehissonisnotamanagerofthefirm,inwhichcaseitcouldbe.Question15#452 26 Youranswer:Dwascorrect!UnderStandardIII(E)PreservationofConfidentiality,membersandcandidatesshouldmaintaintheconfidentialityofinformationreceivedinthecourseoftheirprofessionalservicerelatingtobothcurrentandformerclients.Inthecaseofillegalactivity,however,Reillymayhavealegalobligationtoreporttheactivity.Ideally,heshouldconsultwithhisemployerfirstaboutwhatactionshemayberequiredtotake.Ofthechoicesgiven,seekingtheadviceofoutsidecounselastowhetherhehassuchanobligationunderlocallawandwhethertheactivityisindeedillegalistheonepermittedundertheStandard.Question 16 #45227Youranswer:Bwascorrect!杨 13 818 157537CFA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.Question 21 #45232Youranswer:Awascorrect!Inthissituation,thecoefficientofdetermination(R2)isthepercentageoftotalvariationinthedependentvariable(companysales)explainedbythevariationintheindependentvariable(industrysales).totalvariation(SST)=unexplainedvariation(SSE)+explainedvariation(SSR)So,thecoefficientofdeterminationcanbeexpressedas:AnR2 of0 .25indicatesthatthevariationinindustrychipsalesexplains25%ofvariationinsalesofTastyChips.Forasimpleregression(oneindependentvariable)thesquarerootoftheR2isthecorrelationbetweenthevariables,Question22#45233Youranswer:Awascorrect!Theaverageannualcompoundgrowthrateiscalculatedas:[ (1+ 0.25) (1? 0.25) (1+ 0.30) (1? 0.30)]0.25 ?1= 0. 9 61 1? 1=?.0389or?.89%.Aninitial $10 ,000investmentwouldbeworth10,000 (1. 25)(0.75) (1. 3)(0.7)=$8,5 31. Question23#45234Youranswer:Dwascorrect!杨 13 818 157537CFA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%.Question 31 #45242Youranswer:Awascorrect!Usingthestandardnormalprobabilitydistribution,,thechanceofgettingzeroorlessreturn(losingmoney)is1?0.9772=0.0228%or2.28%.Analternativeexplanation:theexpectedreturnis10%.Tolosemoneymeansthereturnmustfallbelowzero.Zeroisabouttwostandarddeviationstotheleftofthemean.50%ofthetime,areturnwillbebelowthemean,and2.5%oftheobservationsarebelowtwostandarddeviationsdown.About97.5%ofthetime,thereturnwillbeabovezero.Thus,onlyabouta2.5%chanceexistsofhavingavaluebelowzero.Question32#45243Youranswer:Cwascorrect!Accordingtothecentrallimittheorem,thesamplemeanforlargesamplesizeswillbedistributednormallyregardlessofthedistributionoftheunderlyingpopulation.Question33#45244Youranswer:Dwascorrect!Thecrowdingouteffectreferstoareductioninprivateborrowingandspendingasaresultofhigherinterestratesgeneratedbybudgetdeficitsthatarefinancedbyborrowingintheprivateloanablefundsmarket.Question34#45245Youranswer:Awascorrect!Aggregatehoursmeasuresthetotalnumberofhoursworkedinayearbyallemployedpeople.Aggregatehourstakesaccountofboththelevelofemploymentandtheaverageworkweek,makingitsuperiortoeitherofthosemeasuresasanindicatoroftotallaborperformed.Totallaborcompensationisameasureofrealwageratesthatincludeswages,salaries,andemployerpaidbenefits.杨 13 818 157537CFA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#453 01 Youranswer:Awascorrect!Ifcapitalmarketsareweakformefficientandsemistrongformefficient,nopubliclyavailableinformationcanbeusedtoearnabnormal(riskadjusted)returns.Question90#45302Youranswer:Bwascorrect!Timeline=$0now;$0inyear1;$0inyear2;$1inyear3.December 31, 2005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, 050,000December 31, 20 06 牋SharePrice牋NumberofSharesOutstanding牋MarketValueStockA牋 $15 5,000牋$75,000StockB牋$30牋 10 ,000牋$300,000StockC牋$25牋 12 ,000牋$300,000Total牋牋牋牋 $67 5,000杨 13 818 157537CFA资料专卖欢迎广大考友订购!彩色原版印刷书籍,用解释向您诠释真正原版影印,别家均是用我司书籍再次复印,没有 6 解释!买本公司notes看的舒心,用的放心,祝您一次通过!COGSFIFO=27,000? (1, 400 ?1, 200)=$ 26, 800.Question62#45273Youranswer:Bwascorrect!Capitalizingcoststendstosmoothearningsandreducesinvestmentcashflows.Itwillalsoincreasecashflowsfromoperationsandincreaseprofitabilityintheearlyyears.Question63#45274Youranswer:Awascorrect!Question64#452 76 Youranswer:Awascorrect!Firstfindthecurrentratio:Next,usealgebratosolveforthelevelofcurrentassetsthatwouldsatisfyacurrentratioof2.4:X =1, 200,000 .1, 200,000 ?1, 000,000=200,000socurrentassetswouldneedtoincreaseby$200,000.Dothesamethingforcurrentliabilities:X=4 16 , 667 .Currentliabilitieswouldneedtodecreaseby500,000?4 16 , 667 =$83,333.Question65#45277Youranswer:Bwascorrect!PMT=800,000;FV =10 ,000,000;N=5;I/Y=8.25;CPT→PV=$9,900,837杨 13 818 157537CFA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#45 269 Youranswer:Bwascorrect!OnlyStatementIIIisfalse.Inperiodsofdecliningprices,LIFOinventoryvalueswillbehigher,leadingtohigherassetandequityvaluesandlowerdebttoequityratios.FIFOinventoryvaluesarepreferredbecausetheybetterapproximatereplacementcost.FIFOCOGS=LIFOCOGS?changeinLIFOreserve.COGS=purchases+beginninginventory?endinginventory,sothereisanegativerelationbetweenCOGSandmisstatementsofendinginventory.Question59#45270Youranswer:Dwascorrect!Question60#452 71 Youranswer:Dwascorrect!Generally,LIFOcausesCOGStobelargeandnetincometobesmall,soswitchingtoFIFOshouldreversethis,forcingCOGSdownandincomeup.Sotheanswershouldbepositive.TheLIFOreservewentup90?85=+5,soswitchingtoFIFOwilldecreaseCOGSby5,000,whichwillincreasegrossprofitby5,000andnetincomeby(5,000) (1? 0.28)=+3 ,60 0.Question 61 #45272Youranswer:Bwascorrect!COGSFIFO=COGSLIFO?(endingLIFOreserve?beginningLIFOreserve)杨 13 818 157537CFA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.Question 111 #45334Youranswer:Bwascorrect!Calloptionsrepresentanobligationtoperforminthecaseoftheseller.Theowneroftheoption(buy)hastheright,butnotanobligation,topurchaseanunderlyinggoodataspecifiedpriceforaspecifiedtimefromtheseller.Question 112 #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. Question 113 #453 36 Youranswer:Awascorrect!Inaforeigncurrencyswap,bothpartiesexchangefullinterestpayments.TheNewZealandcompanypays6%variableonUSD(USD60,000).TheU.S.companypays7%fixedonNZD(NZD140,000).Question 114 #45338杨 13 818 157537CFA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#45 315 Youranswer:Bwascorrect!Aftertaxyield=pretaxyield (1? marginaltaxrate)=0. 06( 1? 0.28)=0.0432or4.32%.Question100#45 317 Youranswer:Dwascorrect!OfftherunTreasurysecuritiesrefertoolderTreasuryissues.PrefundedmunicipalbondsarebondscollateralizedbyanescrowofsecuritiesguaranteedbytheU.S.government.Revenuebondsaresupportedthroughrevenuesgeneratedfromprojectsthatarefundedwiththehelpoftheoriginalbondissue.Question1 01 #45 318 Youranswer:Bwascorrect!ABEYof8%isequivalenttoa6monthdiscountrateof8/2=4%.r= (1. 0748)0.50 ?1 r=0.0 367 or7.34%onabondequivalentbasisQuestion102#45320杨 13 818 157537CFA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;CF 1 andCF2 =1, 900;CF3=2,500;CF4=2,000.Discount =12 %.ComputeIRR=23 .19 %.Question72#45284Youranswer:Awascorrect!Reliabilityreferstoinformationthatcanbeverified(measuredaccurately)andhasrepresentationalfaithfulness(itiswhatitisreportedtobe).Withoutthesetwocharacteristics,datacannotberelieduponinmakinginvestmentdecisions.Reliableinformationshouldalsoreflectneutralityinthatitdoesnotconsidertheeconomicimpactofthereportedinformation.So,ChoicesB,CandDareallcharacteristicsofreliability.Predictivevalueisnotacharacteristicofreliability;itisassociatedwiththerelevanceofaccountinginformation.Question73#45285Youranswer:Awascorrect!Investorsshouldtakestepstoactuallydiscouragetheuseofthecorporatefundstopay揼reenmail.?Question74#452 86 Youranswer:Cwascorrect!CAPM=0.05 +1. 5(0. 06) =14 %Question75#45287Youranswer:Dwascorrect!Ifthefirmisallequityfinanced,thebreakevenpointforretainedearningsisThus,everydollarthatthefirmspendsontheircapitalbudgetwillbeequitydollars.Question 76 #45288杨 13 818 157537CFA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#45322Youranswer:Awascorrect!(?(8)(?.005)+(50)(?.005)2=+0.0400+0.0 012 5=+0.0 412 5,orup4 .12 5%.Thepricewouldthusbe $1, 000 1. 0 412 5= $1, 0 41. 25.Question104#45323Youranswer:Bwascorrect!CreatingaCMOcanredistributetheprepaymentriskamongthetranches,butitdoesnotaltertheoverallprepaymentriskofamortgagepassthroughsecurity.CMOsarecreatedfromMBS.AlthoughMBSandcallablebondsbothhavereinvestmentrisk,thecashflowsfromanMBSaredifferentinthatmortgageloansareamortizing.Couponbondsarenotamortizing,andabondcallusuallyinvolvesthewholeissue,whereasprepaymentsareforpartoftheoutstandingprincipal.TheMBSandcouponbonddoshareprepaymentriskbecausethecalloptionbenefitstheissuer,orhomeowner,nottheinvestor.Question105#45325Youranswer:Dwascorrect!Aputprovisionallowstheinvestortoputthebondbacktotheissuerifinterestratesrise.Thus,aputoptionbenefits(andmaybeexercisedby)theholder,nottheissuer.Theotherstatementsaretrue.Interestratefloorsbenefittheholderbyprovidingalowerlimit(orminimum)ontheinterestratethebondholderwillreceive.Tounderstandwhytheprepaymentrightgrantedtoamortgageholderbenefitstheissuer,rememberthattheissuerhereisthehomeowner.Thebankactsasapassthroughfromthehomeownertotheownerofabondcollateralizedbytheloan.Therighttoprepayifinterestratesdecreaseisabenefittothe杨 13 818 157537CFA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 #45 310 Youranswer:Dwascorrect!Whenconstructingsamples,researchersmustbevarycarefulnottoincludejustsurvivingcompanies,mutualfunds,orinvestmentnewsletters.Sincesurvivorstendtobethosethathavedonewell(byskillorchance),samplesofmutualfundsthathavea10yeartrackrecords,forexample,willexhibitperformancehistorieswithupwardbias.Mutualfundcompaniesregularlydiscontinuefundswithpoorperformancehistoriesorrolltheirassetsintobetterperformingfunds.Therefore,ChoiceDiscorrect.Question97#45 312 Youranswer:Bwascorrect!Thepriceofabondchangesintheoppositedirectiontothechangeininterestrates.Longterm,lowcouponbondsaremoresensitivethanshorttermandhighcouponbonds.Pricesaremoresensitivetoratedecreasesthantorateincreases(durationrisesasyieldsfall).Question98#45 313 Youranswer:Cwascorrect!ThefriendisincorrectabouttheTIPS(thecouponrateisfixed,theparvalueisadjustedforinflation)andiscorrectaboutthebidaskspreadforontherunissues(ontherunissuesaremoreliquidandthushaveanarrowerbidaskspread).杨 13 818 157537CFA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?200,000 ?60 ,000?35,000] (1? 0.35)?34, 919 +60 ,000=28,3 31. Question 118 #45342Youranswer:Cwascorrect!Thefeemayactuallybesubstantialsince,inadditiontopayingthemanageroftheFOF,afeemustbepaidtoeachhedgefundwithintheFOF.Question 119 #45343Youranswer:Awascorrect!Openendfundsredeemexistingsharesorissuenewsharesinaccordancewithinvestordemand.Closedendfundsharesarefixedinnumberandtradeonexchangesasthoughtheywerecommonstock.Question120#45344Youranswer:Dwascorrect!Longcommoditiespositionswouldtendtohedgetheriskthatbondswoulddeclineinvaluebecauseofincreasesininflationorbecauseofhigherinterestratesduetoanincreaseintheoveralllevelofeconomicactivity.Sellingbondfutureswouldhedgeagainstrisingrates.Interestrateputsincreaseinvalueasratesfallandwouldnotprovideahedge.杨 13 818 157537CFA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#45228Youranswer:Cwascorrect!Afirmcanincludenoncompliantperformancedatafortheperiodjustpriortotheperiodofcompliantperformancedata,aslongasnononcompliantdataforperiodsafterJanuary1,2001isincluded,allnoncompliantdataareidentified,andthewaysinwhichthedataarenoncompliantaredisclosed.Firmsmustsupplyalistofcompositesandcompositedescriptionsonlytoclientsandprospectsthatrequestit.Firmsmustaddoneyearofcompliantperformanceinformationeachyearuntilatotaloftenyearsdataarereported.Question18#45229Youranswer:Awascorrect!TheCFAInstitute抯GIPSrequirethat,toclaimcompliance,firmsmustpresentGIPScompliantperformanceinformationforaminimumoffiveyears,orsinceinceptionifinexistencelessthanfiveyears.Question19#45230Youranswer:Bwascorrect!Thisprobleminvolvesdeterminingthepresentvalueofanannuityfollowedbyfindingthepresentvalueofalumpsum.EnterPMT =10 ,000,N =10 ,andI/Y =14 .ComputePV=52, 16 1 . 16 . Thatisthepresentvalueofthe10yearannuity,4yearsfromtoday.Next,weneedtodiscountthatbacktopresentfor4yearstofindtheamountoftheinvestmenttoday.EnterFV=52, 16 1 . 16 , N=4,I/Y =14 ,PMT=0.ComputePV=30,883.59.Question20#452 31 杨 13 818 157537CFA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.Question82#45294Youranswer:Awascorrect!BasedontheCAPM,theportfolioshouldearn:E(R)=0.05 +1. 5(0 .15 ?0.05)=0.20or20%.Onariskadjustedbasis,thisportfolioliesontheSMLandisthusearningtheproperriskadjustedrateofreturn.Question83#45295Youranswer:Cwascorrect!Theseethicalissuesfallundertheheadingofindividualinvestorconcerns.Someinvestorswouldexcludethesetypesofinvestmentsduetotheirownpersonalpreferences.Question84#452 96 Youranswer:Awascorrect!Tofindthecorrelationcoefficientbetweenthetwostocks,wemustfirstfindthestandarddeviationsofeachstockandthenfindthecovariancebetweenthestocks.Thecorrelationcoefficientisthecovariancedividedbytheproductofthestandarddeviations.YearStock1(xavg)2Stock2(xavg)299 12 16 5000 15 49025 01 ? 12 1 10 25avg=8sum =1 86 avg=5sum=50杨 13 818 157537CFA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#452 51 Youranswer:Bwascorrect!Underperfectcompetition,eachfirmfacesaflatdemandcurve.Thismeansthepriceisconstantandthemarginalrevenuelineisflat.AcompanywillcontinuetoproduceaslongasMR>MC,sothecompetitivecompanywillproduceaslongasP>MC.ItwillstopwhenMC=MR=P.Question 41 #45252Youranswer:Cwascorrect!Intheshortrun,thedecisiontooperateisbasedonwhetherpricecoversaveragevariablecosts.Inthelongrun,averagefixedcostsmustbeconsideredaswell.Sunkcostsarehistoricalcosts.Sinkingfundsareestablishedtoretirelongtermdebt.Themarginalrevenuefromsellinganadditionalunitofoutputmustbeatleastasgreatasitsmarginalcostofproduction.Question42#45253Youranswer:Awascorrect!ToconvertMexicanpesopricestoU.S.dollars,divideby12.ShoesarecheaperinMexicoversustheU.S.(40versus50);soaretoys(3versus4)andhats(8versus10).Therefore,theU.S.shouldimportallthreegoodsfromMexico.Question43#45254Youranswer:Cwascorrect!TheAUDdepreciatedbecauseitnowtakesmoreAUDtobyaUSD.Acrossrateistheexchangeratebetweentwocountriesderivedfromtheirexchangerateswithathirdcountry.Directexchangeratesdon抰necessarilyinvolvetheU.S.dollar.杨 13 818 157537CFA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 =12 0 /10 =12 ,median =10 ,andmode =10 .Thedistributionisskewedtotheright,sothemeanisgreaterthanthemedianandmode.Generally,forpositivelyskeweddistributions,themodeislessthanthemedian,whichislessthanthemean.Inthiscase,themodeandmedianareequalbecausethenumberofobservationsissmall.Question24#45235Youranswer: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#452 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 #45237Youranswer:Bwascorrect!Subjectiveprobabilityisbasedonpersonaljudgment.Arandomvariableisaquantitywhoseoutcomesareuncertain.杨 13 818 157537CFA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 0.0825=$8 16 , 819 . 01 Yearendadjustment=8 16 , 819 . 01? 800,000=$ 16 , 819 . 01 Yearenddebt=$9,900,8 36. 51+ $ 16 , 819 . 01= $9, 917 ,65 5.52Note:Sincethisisadiscountbond,weknowthevaluewillincreaseeachyear,sowereallydidn抰havetodoanycalculationstoanswerthisquestion.Question 66 #45278Youranswer: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#45279Youranswer:Bwascorrect!Taxbenefitsarerealizedifthelesseeisinalowtaxbracketandthelessorisinahightaxbracket.Anoperatingleaseallowsthelessortoretainthe(greater)taxbenefitsfromdepreciatingtheasset.Forexample,thelessorbenefitsfromusingaccelerateddepreciationonitstaxreturns.Question68#45280Youranswer:Awascorrect!Operatingleasesareatypeofoffbalancesheetfinancing.Ananalystshouldcapitalizeoperatingleasestodevelopmorerepresentativeleverageratiosandtofacilitatecomparison ... 杨 13 818 157537CFA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#452 46 Youranswer:Bwascorrect!whereristhenominalriskfreerate.Hence,ThenominalrateintheU.S.is5%=2+3.TheresultisthatUsing (1. 02) (1. 03) ?1= 0.0506fortheU.S.nominalrateproducesaresultof4 .12 %.Question 36 #45247Youranswer:Cwascorrect!OpenmarketoperationsaretheU.S.FederalReserve抯mostoftenusedtoolforchangingthemoneysupply.Question37#45248Youranswer:Dwascorrect!Thedemandforlaborisaderiveddemand.Whenthedemandforthefinalgoodorserviceincreases,thepriceofthatfinalgoodorserviceincreases.Thatincreaseinpricewillleadtothefirmemployingmoreoftheresourcesusedinproductionateachresourceprice,includinglabor.Question38#45249Youranswer:Awascorrect!Intheshortrun,anincreaseinthemoneysupplywillincreaseaggregatedemand.Thenewshortrunequilibriumwillbeatahigherpricelevelandagreaterlevelofrealoutput(GDP).Question39#45250Youranswer:Bwascorrect!杨 13 818 157537CFA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#45297Youranswer:Dwascorrect!Astopbuyorderisaconditionalmarketorderbywhichaninvestordirectsthepurchaseofastockifitrisestoacertainprice.Stopbuysareplacedabovethecurrentmarketprice.Limitorderscanhavemarketpriceasthelimit,usedwhenlackofliquidityisaconcern.Question 86 #45298Youranswer:Dwascorrect!Theshortsellerhopesthatthecurrentpriceistoohighandhopesthatitwillfallinthefuture.However,notradingruleexiststhatrequirestheshortsellertosubsequentlyreplacetheborrowedstockatapricelowerthanthepriceatwhichheorshesoldthestock.Question87#45299Youranswer:Bwascorrect!ThepriceweightedindexonDecember 31, 2005equalsandonDecember 31, 2006equalsTheoneyearholdingperiodreturnisYearDif.Stock1Dif.Stock2CrossProduct99400007??5 01 ?1 5?5杨 13 818 157537CFA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 #45327Youranswer:Bwascorrect!Thecleanpriceofthebondisthequotedprice,89 .14 %ofparvalue,whichis$8 91. 40.Question107#45328Youranswer:Dwascorrect!Resettinginterestratesmakesthebondless,notmore,susceptibletointerestratechanges.Question108#45329Youranswer:Dwascorrect!Whentheforeigncurrencyappreciates,eachforeigncurrencydenominatedcashflowbuysmoredomesticcurrencyunits梚ncreasingthedomesticcurrencyreturnfromtheinvestment.Theappreciationoftheforeignassetbenefitstheinvestoraswell.Question109#453 31 Youranswer:Dwascorrect!Forwardsaresubjecttodefaultrisk,butfuturesarenot.Forwardsareprivatecontracts,butfuturesareexchangetraded.Forwardsareindividualizedcontracts,butfuturesarestandardized.Question 110 #45332Youranswer:Cwascorrect!ChoiceAisincorrectbecausespeculatorsenterthefuturesmarketinpursuitofprofit,acceptingriskintheendeavor.杨 13 818 157537CFA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 $10 tobereceivedintwoyears.FV =10 ;N=2;I/Y =17 ;CPT→PV=$7. 31. Question 91 #45303Youranswer:Dwascorrect!Theforecastyearendprice,P,is:Question92#45304Youranswer:Dwascorrect!Thisindustryappearstobeintherapidacceleratinggrowthphase.Thisphaseischaracterizedbythedevelopmentofnewproductsandrapiddemandgrowth.Thereislimitedcompetition,andsalesgrowthandprofitmarginsarehighandaccelerating.Question93#45305Youranswer:Awascorrect!Supplyanddemandaregovernedbymanyfactors,bothrationalandirrational.Question94#45307Youranswer:Bwascorrect!Specifictradingrulesrequiremuchsubjectivejudgment.杨 13 818 157537CFA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#45255Youranswer:Bwascorrect!Anaturalmonopolymayexistwheneconomiesofscalearegreat.Thelargeeconomiesofscalemakeitinefficienttohavemanysmallproducers.Question45#452 56 Youranswer:Bwascorrect!Extraordinaryitemsareunusualandinfrequentitemsthatarereportedseparately,netoftax揵elowtheline.?Question 46 #45257Youranswer:Bwascorrect!Thisisthedirectmethod,whichstartsatthetopoftheincomestatementwithsalesandthenworkswiththeindividualcomponentsofnetincomedirectlyrelatedtocashflows.Question47#45258Netsales+ 1, 200Accountsreceivable(down)+25Cashcollectedfromcustomers+ 1, 225Costofgoodssold?nbsp; 65 0Inventory(up)?nbsp; 10 0Accountspayable(up)+50Cashpaymentsforinputs?nbsp;700Cashinterestpaid?nbsp;45Cashinterestreceived+20Cashflowfromoperations+$500杨 13 818 157537CFA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#452 16 Youranswer:Awascorrect!StandardI(C)Misrepresentation.JameshasactedinappropriatelyinaskingJonestoplagiarizethereportandmayhaveviolatedseveralStandards,includingStandardIV(C)ResponsibilitiesofSupervisors.However,hehasnotviolatedtheprohibitionagainstplagiarisminStandardI(C).Jones,ontheotherhand,evenifactingontherequestofhersupervisor,willviolateStandardI(C)Misrepresentation.Makingminorchangestoareportdoesnotmakeityourown.Question6#45 217 Youranswer:Awascorrect!AccordingtoStandardII(B)MarketManipulation,membersandcandidatesshouldnotengageinanypracticethatwouldartificiallyinflatetradingvolumeordistortprices.However,thisStandarddoesnotprohibittransactionsdonefortaxpurposes.Inthiscase,therewasnointenttomisleadmarketparticipantsastothestockpriceofSafetyAirlines,andthetradeswereundertakentotakeadvantageofalegitimatetaxstrategy.ThustherehasbeennoviolationofStandardII(B)oranyotherStandard.Question7#45 218 Youranswer:Dwascorrect!StandardI(B)IndependenceandObjectivityallowsinvestorpaidresearchbutrequiresthatmembersandcandidateslimitthetypeofcompensationtheyacceptforwritingaresearchreportsothatitisnotdependentontheconclusionsoftheresearchreport.Bestpracticeisforanalyststoonlyacceptaflatfeeforsuchcompanypaidresearchreports.Suchresearchshouldalsoincludecompletedisclosureofthenatureofthecompensationreceivedforwritingsuchareportsothatinvestorswillnotbemisledastotherelationshipbetweentheanalystandthecompany.杨 13 818 157537CFA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 $12 0,whichwasacashoutflow.Question48#45259Youranswer:Cwascorrect!Question49#45 260 Youranswer:Cwascorrect!Whenusingthedirectmethodofcalculatingoperatingcashflows,depreciationandamortizationarenot揳ddedback?(tonetincome)becausewedon抰beginwithnetincomeunderthedirectmethod.Depreciationandamortizationarenoncashchangesandarenotusedunderthedirectmethod.Theotherstatementsaretrue.Interestpaymentsondebtaffectcashflowfromoperations.Whenusingtheindirectmethod,ananalystshouldaddanylossesonsalesoffixedassetstonetincomesincetheyarenotoperatingcashflows.Question50#45 2 61 Youranswer:Dwascorrect!Inaperiodofrisingprices,LIFOresultsinhigherCOGS,lowertaxes,lowernetincome,lowerinventorybalances,lowerworkingcapital,andhighercashflowsduetolesstaxespaidout.Inafallingpriceenvironment,itisthereverse.Also,FIFOinventoryleadstooppositeresultsforbothrisingandfallingprices.Question 51 #45 262 Youranswer:Awascorrect!Paiddividend?5Saleofstock+275Retireddebt?25Financingcashflow +12 5杨 13 818 157537CFA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#45224Youranswer:Cwascorrect!UndertheCodeandStandards,Marshallhasanobligationtodisclosethatshereceivesspecialcompensationbasedontheamountofclienttradingvolume.StandardVI(A)DisclosureofConflictsrequiresmemberstodisclosetoclientsandprospectsallmattersthatcouldpotentiallyimpairthemember抯abilitytomakeinvestmentdecisionsthatare(andtogiveinvestmentadvicethatis)objectiveandunbiased.Question14#45225Youranswer:Bwascorrect!StandardVI(A)DisclosureofConflicts.Matlockmustdisclose (1) specialrelationships梔irectorshipsandconsultancies,(2)investmentbanking,(3)underwritingandfinancialrelationships,(4)brokerdealermarketmakingactivities,and(5)materialbeneficialownership.ThefactthatMatlock抯sonworksforKingCompanyisnotaconflictrequiringdisclosuretoclientsandprospectssincehissonisnotamanagerofthefirm,inwhichcaseitcouldbe.Question15#452 26 Youranswer:Dwascorrect!UnderStandardIII(E)PreservationofConfidentiality,membersandcandidatesshouldmaintaintheconfidentialityofinformationreceivedinthecourseoftheirprofessionalservicerelatingtobothcurrentandformerclients.Inthecaseofillegalactivity,however,Reillymayhavealegalobligationtoreporttheactivity.Ideally,heshouldconsultwithhisemployerfirstaboutwhatactionshemayberequiredtotake.Ofthechoicesgiven,seekingtheadviceofoutsidecounselastowhetherhehassuchanobligationunderlocallawandwhethertheactivityisindeedillegalistheonepermittedundertheStandard.Question 16 #45227Youranswer:Bwascorrect!杨 13 818 157537CFA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.Question 21 #45232Youranswer:Awascorrect!Inthissituation,thecoefficientofdetermination(R2)isthepercentageoftotalvariationinthedependentvariable(companysales)explainedbythevariationintheindependentvariable(industrysales).totalvariation(SST)=unexplainedvariation(SSE)+explainedvariation(SSR)So,thecoefficientofdeterminationcanbeexpressedas:AnR2 of0 .25indicatesthatthevariationinindustrychipsalesexplains25%ofvariationinsalesofTastyChips.Forasimpleregression(oneindependentvariable)thesquarerootoftheR2isthecorrelationbetweenthevariables,Question22#45233Youranswer:Awascorrect!Theaverageannualcompoundgrowthrateiscalculatedas:[ (1+ 0.25) (1? 0.25) (1+ 0.30) (1? 0.30)]0.25 ?1= 0. 9 61 1? 1=?.0389or?.89%.Aninitial $10 ,000investmentwouldbeworth10,000 (1. 25)(0.75) (1. 3)(0.7)=$8,5 31. Question23#45234Youranswer:Dwascorrect!杨 13 818 157537CFA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%.Question 31 #45242Youranswer:Awascorrect!Usingthestandardnormalprobabilitydistribution,,thechanceofgettingzeroorlessreturn(losingmoney)is1?0.9772=0.0228%or2.28%.Analternativeexplanation:theexpectedreturnis10%.Tolosemoneymeansthereturnmustfallbelowzero.Zeroisabouttwostandarddeviationstotheleftofthemean.50%ofthetime,areturnwillbebelowthemean,and2.5%oftheobservationsarebelowtwostandarddeviationsdown.About97.5%ofthetime,thereturnwillbeabovezero.Thus,onlyabouta2.5%chanceexistsofhavingavaluebelowzero.Question32#45243Youranswer:Cwascorrect!Accordingtothecentrallimittheorem,thesamplemeanforlargesamplesizeswillbedistributednormallyregardlessofthedistributionoftheunderlyingpopulation.Question33#45244Youranswer:Dwascorrect!Thecrowdingouteffectreferstoareductioninprivateborrowingandspendingasaresultofhigherinterestratesgeneratedbybudgetdeficitsthatarefinancedbyborrowingintheprivateloanablefundsmarket.Question34#45245Youranswer:Awascorrect!Aggregatehoursmeasuresthetotalnumberofhoursworkedinayearbyallemployedpeople.Aggregatehourstakesaccountofboththelevelofemploymentandtheaverageworkweek,makingitsuperiortoeitherofthosemeasuresasanindicatoroftotallaborperformed.Totallaborcompensationisameasureofrealwageratesthatincludeswages,salaries,andemployerpaidbenefits.杨 13 818 157537CFA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#453 01 Youranswer:Awascorrect!Ifcapitalmarketsareweakformefficientandsemistrongformefficient,nopubliclyavailableinformationcanbeusedtoearnabnormal(riskadjusted)returns.Question90#45302Youranswer:Bwascorrect!Timeline=$0now;$0inyear1;$0inyear2;$1inyear3.December 31, 2005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, 050,000December 31, 20 06 牋SharePrice牋NumberofSharesOutstanding牋MarketValueStockA牋 $15 5,000牋$75,000StockB牋$30牋 10 ,000牋$300,000StockC牋$25牋 12 ,000牋$300,000Total牋牋牋牋 $67 5,000杨 13 818 157537CFA资料专卖欢迎广大考友订购!彩色原版印刷书籍,用解释向您诠释真正原版影印,别家均是用我司书籍再次复印,没有 6 解释!买本公司notes看的舒心,用的放心,祝您一次通过!COGSFIFO=27,000? (1, 400 ?1, 200)=$ 26, 800.Question62#45273Youranswer:Bwascorrect!Capitalizingcoststendstosmoothearningsandreducesinvestmentcashflows.Itwillalsoincreasecashflowsfromoperationsandincreaseprofitabilityintheearlyyears.Question63#45274Youranswer:Awascorrect!Question64#452 76 Youranswer:Awascorrect!Firstfindthecurrentratio:Next,usealgebratosolveforthelevelofcurrentassetsthatwouldsatisfyacurrentratioof2.4:X =1, 200,000 .1, 200,000 ?1, 000,000=200,000socurrentassetswouldneedtoincreaseby$200,000.Dothesamethingforcurrentliabilities:X=4 16 , 667 .Currentliabilitieswouldneedtodecreaseby500,000?4 16 , 667 =$83,333.Question65#45277Youranswer:Bwascorrect!PMT=800,000;FV =10 ,000,000;N=5;I/Y=8.25;CPT→PV=$9,900,837杨 13 818 157537CFA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#45 269 Youranswer:Bwascorrect!OnlyStatementIIIisfalse.Inperiodsofdecliningprices,LIFOinventoryvalueswillbehigher,leadingtohigherassetandequityvaluesandlowerdebttoequityratios.FIFOinventoryvaluesarepreferredbecausetheybetterapproximatereplacementcost.FIFOCOGS=LIFOCOGS?changeinLIFOreserve.COGS=purchases+beginninginventory?endinginventory,sothereisanegativerelationbetweenCOGSandmisstatementsofendinginventory.Question59#45270Youranswer:Dwascorrect!Question60#452 71 Youranswer:Dwascorrect!Generally,LIFOcausesCOGStobelargeandnetincometobesmall,soswitchingtoFIFOshouldreversethis,forcingCOGSdownandincomeup.Sotheanswershouldbepositive.TheLIFOreservewentup90?85=+5,soswitchingtoFIFOwilldecreaseCOGSby5,000,whichwillincreasegrossprofitby5,000andnetincomeby(5,000) (1? 0.28)=+3 ,60 0.Question 61 #45272Youranswer:Bwascorrect!COGSFIFO=COGSLIFO?(endingLIFOreserve?beginningLIFOreserve)杨 13 818 157537CFA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.Question 111 #45334Youranswer:Bwascorrect!Calloptionsrepresentanobligationtoperforminthecaseoftheseller.Theowneroftheoption(buy)hastheright,butnotanobligation,topurchaseanunderlyinggoodataspecifiedpriceforaspecifiedtimefromtheseller.Question 112 #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. Question 113 #453 36 Youranswer:Awascorrect!Inaforeigncurrencyswap,bothpartiesexchangefullinterestpayments.TheNewZealandcompanypays6%variableonUSD(USD60,000).TheU.S.companypays7%fixedonNZD(NZD140,000).Question 114 #45338杨 13 818 157537CFA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#45 315 Youranswer:Bwascorrect!Aftertaxyield=pretaxyield (1? marginaltaxrate)=0. 06( 1? 0.28)=0.0432or4.32%.Question100#45 317 Youranswer:Dwascorrect!OfftherunTreasurysecuritiesrefertoolderTreasuryissues.PrefundedmunicipalbondsarebondscollateralizedbyanescrowofsecuritiesguaranteedbytheU.S.government.Revenuebondsaresupportedthroughrevenuesgeneratedfromprojectsthatarefundedwiththehelpoftheoriginalbondissue.Question1 01 #45 318 Youranswer:Bwascorrect!ABEYof8%isequivalenttoa6monthdiscountrateof8/2=4%.r= (1. 0748)0.50 ?1 r=0.0 367 or7.34%onabondequivalentbasisQuestion102#45320杨 13 818 157537CFA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;CF 1 andCF2 =1, 900;CF3=2,500;CF4=2,000.Discount =12 %.ComputeIRR=23 .19 %.Question72#45284Youranswer:Awascorrect!Reliabilityreferstoinformationthatcanbeverified(measuredaccurately)andhasrepresentationalfaithfulness(itiswhatitisreportedtobe).Withoutthesetwocharacteristics,datacannotberelieduponinmakinginvestmentdecisions.Reliableinformationshouldalsoreflectneutralityinthatitdoesnotconsidertheeconomicimpactofthereportedinformation.So,ChoicesB,CandDareallcharacteristicsofreliability.Predictivevalueisnotacharacteristicofreliability;itisassociatedwiththerelevanceofaccountinginformation.Question73#45285Youranswer:Awascorrect!Investorsshouldtakestepstoactuallydiscouragetheuseofthecorporatefundstopay揼reenmail.?Question74#452 86 Youranswer:Cwascorrect!CAPM=0.05 +1. 5(0. 06) =14 %Question75#45287Youranswer:Dwascorrect!Ifthefirmisallequityfinanced,thebreakevenpointforretainedearningsisThus,everydollarthatthefirmspendsontheircapitalbudgetwillbeequitydollars.Question 76 #45288杨 13 818 157537CFA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#45322Youranswer:Awascorrect!(?(8)(?.005)+(50)(?.005)2=+0.0400+0.0 012 5=+0.0 412 5,orup4 .12 5%.Thepricewouldthusbe $1, 000 1. 0 412 5= $1, 0 41. 25.Question104#45323Youranswer:Bwascorrect!CreatingaCMOcanredistributetheprepaymentriskamongthetranches,butitdoesnotaltertheoverallprepaymentriskofamortgagepassthroughsecurity.CMOsarecreatedfromMBS.AlthoughMBSandcallablebondsbothhavereinvestmentrisk,thecashflowsfromanMBSaredifferentinthatmortgageloansareamortizing.Couponbondsarenotamortizing,andabondcallusuallyinvolvesthewholeissue,whereasprepaymentsareforpartoftheoutstandingprincipal.TheMBSandcouponbonddoshareprepaymentriskbecausethecalloptionbenefitstheissuer,orhomeowner,nottheinvestor.Question105#45325Youranswer:Dwascorrect!Aputprovisionallowstheinvestortoputthebondbacktotheissuerifinterestratesrise.Thus,aputoptionbenefits(andmaybeexercisedby)theholder,nottheissuer.Theotherstatementsaretrue.Interestratefloorsbenefittheholderbyprovidingalowerlimit(orminimum)ontheinterestratethebondholderwillreceive.Tounderstandwhytheprepaymentrightgrantedtoamortgageholderbenefitstheissuer,rememberthattheissuerhereisthehomeowner.Thebankactsasapassthroughfromthehomeownertotheownerofabondcollateralizedbytheloan.Therighttoprepayifinterestratesdecreaseisabenefittothe杨 13 818 157537CFA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 #45 310 Youranswer:Dwascorrect!Whenconstructingsamples,researchersmustbevarycarefulnottoincludejustsurvivingcompanies,mutualfunds,orinvestmentnewsletters.Sincesurvivorstendtobethosethathavedonewell(byskillorchance),samplesofmutualfundsthathavea10yeartrackrecords,forexample,willexhibitperformancehistorieswithupwardbias.Mutualfundcompaniesregularlydiscontinuefundswithpoorperformancehistoriesorrolltheirassetsintobetterperformingfunds.Therefore,ChoiceDiscorrect.Question97#45 312 Youranswer:Bwascorrect!Thepriceofabondchangesintheoppositedirectiontothechangeininterestrates.Longterm,lowcouponbondsaremoresensitivethanshorttermandhighcouponbonds.Pricesaremoresensitivetoratedecreasesthantorateincreases(durationrisesasyieldsfall).Question98#45 313 Youranswer:Cwascorrect!ThefriendisincorrectabouttheTIPS(thecouponrateisfixed,theparvalueisadjustedforinflation)andiscorrectaboutthebidaskspreadforontherunissues(ontherunissuesaremoreliquidandthushaveanarrowerbidaskspread).杨 13 818 157537CFA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?200,000 ?60 ,000?35,000] (1? 0.35)?34, 919 +60 ,000=28,3 31. Question 118 #45342Youranswer:Cwascorrect!Thefeemayactuallybesubstantialsince,inadditiontopayingthemanageroftheFOF,afeemustbepaidtoeachhedgefundwithintheFOF.Question 119 #45343Youranswer:Awascorrect!Openendfundsredeemexistingsharesorissuenewsharesinaccordancewithinvestordemand.Closedendfundsharesarefixedinnumberandtradeonexchangesasthoughtheywerecommonstock.Question120#45344Youranswer:Dwascorrect!Longcommoditiespositionswouldtendtohedgetheriskthatbondswoulddeclineinvaluebecauseofincreasesininflationorbecauseofhigherinterestratesduetoanincreaseintheoveralllevelofeconomicactivity.Sellingbondfutureswouldhedgeagainstrisingrates.Interestrateputsincreaseinvalueasratesfallandwouldnotprovideahedge.杨 13 818 157537CFA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#45228Youranswer:Cwascorrect!Afirmcanincludenoncompliantperformancedatafortheperiodjustpriortotheperiodofcompliantperformancedata,aslongasnononcompliantdataforperiodsafterJanuary1,2001isincluded,allnoncompliantdataareidentified,andthewaysinwhichthedataarenoncompliantaredisclosed.Firmsmustsupplyalistofcompositesandcompositedescriptionsonlytoclientsandprospectsthatrequestit.Firmsmustaddoneyearofcompliantperformanceinformationeachyearuntilatotaloftenyearsdataarereported.Question18#45229Youranswer:Awascorrect!TheCFAInstitute抯GIPSrequirethat,toclaimcompliance,firmsmustpresentGIPScompliantperformanceinformationforaminimumoffiveyears,orsinceinceptionifinexistencelessthanfiveyears.Question19#45230Youranswer:Bwascorrect!Thisprobleminvolvesdeterminingthepresentvalueofanannuityfollowedbyfindingthepresentvalueofalumpsum.EnterPMT =10 ,000,N =10 ,andI/Y =14 .ComputePV=52, 16 1 . 16 . Thatisthepresentvalueofthe10yearannuity,4yearsfromtoday.Next,weneedtodiscountthatbacktopresentfor4yearstofindtheamountoftheinvestmenttoday.EnterFV=52, 16 1 . 16 , N=4,I/Y =14 ,PMT=0.ComputePV=30,883.59.Question20#452 31 杨 13 818 157537CFA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.Question82#45294Youranswer:Awascorrect!BasedontheCAPM,theportfolioshouldearn:E(R)=0.05 +1. 5(0 .15 ?0.05)=0.20or20%.Onariskadjustedbasis,thisportfolioliesontheSMLandisthusearningtheproperriskadjustedrateofreturn.Question83#45295Youranswer:Cwascorrect!Theseethicalissuesfallundertheheadingofindividualinvestorconcerns.Someinvestorswouldexcludethesetypesofinvestmentsduetotheirownpersonalpreferences.Question84#452 96 Youranswer:Awascorrect!Tofindthecorrelationcoefficientbetweenthetwostocks,wemustfirstfindthestandarddeviationsofeachstockandthenfindthecovariancebetweenthestocks.Thecorrelationcoefficientisthecovariancedividedbytheproductofthestandarddeviations.YearStock1(xavg)2Stock2(xavg)299 12 16 5000 15 49025 01 ? 12 1 10 25avg=8sum =1 86 avg=5sum=50杨 13 818 157537CFA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#452 51 Youranswer:Bwascorrect!Underperfectcompetition,eachfirmfacesaflatdemandcurve.Thismeansthepriceisconstantandthemarginalrevenuelineisflat.AcompanywillcontinuetoproduceaslongasMR>MC,sothecompetitivecompanywillproduceaslongasP>MC.ItwillstopwhenMC=MR=P.Question 41 #45252Youranswer:Cwascorrect!Intheshortrun,thedecisiontooperateisbasedonwhetherpricecoversaveragevariablecosts.Inthelongrun,averagefixedcostsmustbeconsideredaswell.Sunkcostsarehistoricalcosts.Sinkingfundsareestablishedtoretirelongtermdebt.Themarginalrevenuefromsellinganadditionalunitofoutputmustbeatleastasgreatasitsmarginalcostofproduction.Question42#45253Youranswer:Awascorrect!ToconvertMexicanpesopricestoU.S.dollars,divideby12.ShoesarecheaperinMexicoversustheU.S.(40versus50);soaretoys(3versus4)andhats(8versus10).Therefore,theU.S.shouldimportallthreegoodsfromMexico.Question43#45254Youranswer:Cwascorrect!TheAUDdepreciatedbecauseitnowtakesmoreAUDtobyaUSD.Acrossrateistheexchangeratebetweentwocountriesderivedfromtheirexchangerateswithathirdcountry.Directexchangeratesdon抰necessarilyinvolvetheU.S.dollar.杨 13 818 157537CFA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 =12 0 /10 =12 ,median =10 ,andmode =10 .Thedistributionisskewedtotheright,sothemeanisgreaterthanthemedianandmode.Generally,forpositivelyskeweddistributions,themodeislessthanthemedian,whichislessthanthemean.Inthiscase,themodeandmedianareequalbecausethenumberofobservationsissmall.Question24#45235Youranswer: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#452 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 #45237Youranswer:Bwascorrect!Subjectiveprobabilityisbasedonpersonaljudgment.Arandomvariableisaquantitywhoseoutcomesareuncertain.杨 13 818 157537CFA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 0.0825=$8 16 , 819 . 01 Yearendadjustment=8 16 , 819 . 01? 800,000=$ 16 , 819 . 01 Yearenddebt=$9,900,8 36. 51+ $ 16 , 819 . 01= $9, 917 ,65 5.52Note:Sincethisisadiscountbond,weknowthevaluewillincreaseeachyear,sowereallydidn抰havetodoanycalculationstoanswerthisquestion.Question 66 #45278Youranswer: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#45279Youranswer:Bwascorrect!Taxbenefitsarerealizedifthelesseeisinalowtaxbracketandthelessorisinahightaxbracket.Anoperatingleaseallowsthelessortoretainthe(greater)taxbenefitsfromdepreciatingtheasset.Forexample,thelessorbenefitsfromusingaccelerateddepreciationonitstaxreturns.Question68#45280Youranswer:Awascorrect!Operatingleasesareatypeofoffbalancesheetfinancing.Ananalystshouldcapitalizeoperatingleasestodevelopmorerepresentativeleverageratiosandtofacilitatecomparison ... 杨 13 818 157537CFA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#452 46 Youranswer:Bwascorrect!whereristhenominalriskfreerate.Hence,ThenominalrateintheU.S.is5%=2+3.TheresultisthatUsing (1. 02) (1. 03) ?1= 0.0506fortheU.S.nominalrateproducesaresultof4 .12 %.Question 36 #45247Youranswer:Cwascorrect!OpenmarketoperationsaretheU.S.FederalReserve抯mostoftenusedtoolforchangingthemoneysupply.Question37#45248Youranswer:Dwascorrect!Thedemandforlaborisaderiveddemand.Whenthedemandforthefinalgoodorserviceincreases,thepriceofthatfinalgoodorserviceincreases.Thatincreaseinpricewillleadtothefirmemployingmoreoftheresourcesusedinproductionateachresourceprice,includinglabor.Question38#45249Youranswer:Awascorrect!Intheshortrun,anincreaseinthemoneysupplywillincreaseaggregatedemand.Thenewshortrunequilibriumwillbeatahigherpricelevelandagreaterlevelofrealoutput(GDP).Question39#45250Youranswer:Bwascorrect!杨 13 818 157537CFA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#45297Youranswer:Dwascorrect!Astopbuyorderisaconditionalmarketorderbywhichaninvestordirectsthepurchaseofastockifitrisestoacertainprice.Stopbuysareplacedabovethecurrentmarketprice.Limitorderscanhavemarketpriceasthelimit,usedwhenlackofliquidityisaconcern.Question 86 #45298Youranswer:Dwascorrect!Theshortsellerhopesthatthecurrentpriceistoohighandhopesthatitwillfallinthefuture.However,notradingruleexiststhatrequirestheshortsellertosubsequentlyreplacetheborrowedstockatapricelowerthanthepriceatwhichheorshesoldthestock.Question87#45299Youranswer:Bwascorrect!ThepriceweightedindexonDecember 31, 2005equalsandonDecember 31, 2006equalsTheoneyearholdingperiodreturnisYearDif.Stock1Dif.Stock2CrossProduct99400007??5 01 ?1 5?5杨 13 818 157537CFA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 #45327Youranswer:Bwascorrect!Thecleanpriceofthebondisthequotedprice,89 .14 %ofparvalue,whichis$8 91. 40.Question107#45328Youranswer:Dwascorrect!Resettinginterestratesmakesthebondless,notmore,susceptibletointerestratechanges.Question108#45329Youranswer:Dwascorrect!Whentheforeigncurrencyappreciates,eachforeigncurrencydenominatedcashflowbuysmoredomesticcurrencyunits梚ncreasingthedomesticcurrencyreturnfromtheinvestment.Theappreciationoftheforeignassetbenefitstheinvestoraswell.Question109#453 31 Youranswer:Dwascorrect!Forwardsaresubjecttodefaultrisk,butfuturesarenot.Forwardsareprivatecontracts,butfuturesareexchangetraded.Forwardsareindividualizedcontracts,butfuturesarestandardized.Question 110 #45332Youranswer:Cwascorrect!ChoiceAisincorrectbecausespeculatorsenterthefuturesmarketinpursuitofprofit,acceptingriskintheendeavor.杨 13 818 157537CFA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 $10 tobereceivedintwoyears.FV =10 ;N=2;I/Y =17 ;CPT→PV=$7. 31. Question 91 #45303Youranswer:Dwascorrect!Theforecastyearendprice,P,is:Question92#45304Youranswer:Dwascorrect!Thisindustryappearstobeintherapidacceleratinggrowthphase.Thisphaseischaracterizedbythedevelopmentofnewproductsandrapiddemandgrowth.Thereislimitedcompetition,andsalesgrowthandprofitmarginsarehighandaccelerating.Question93#45305Youranswer:Awascorrect!Supplyanddemandaregovernedbymanyfactors,bothrationalandirrational.Question94#45307Youranswer:Bwascorrect!Specifictradingrulesrequiremuchsubjectivejudgment.杨 13 818 157537CFA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#45255Youranswer:Bwascorrect!Anaturalmonopolymayexistwheneconomiesofscalearegreat.Thelargeeconomiesofscalemakeitinefficienttohavemanysmallproducers.Question45#452 56 Youranswer:Bwascorrect!Extraordinaryitemsareunusualandinfrequentitemsthatarereportedseparately,netoftax揵elowtheline.?Question 46 #45257Youranswer:Bwascorrect!Thisisthedirectmethod,whichstartsatthetopoftheincomestatementwithsalesandthenworkswiththeindividualcomponentsofnetincomedirectlyrelatedtocashflows.Question47#45258Netsales+ 1, 200Accountsreceivable(down)+25Cashcollectedfromcustomers+ 1, 225Costofgoodssold?nbsp; 65 0Inventory(up)?nbsp; 10 0Accountspayable(up)+50Cashpaymentsforinputs?nbsp;700Cashinterestpaid?nbsp;45Cashinterestreceived+20Cashflowfromoperations+$500杨 13 818 157537CFA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#452 16 Youranswer:Awascorrect!StandardI(C)Misrepresentation.JameshasactedinappropriatelyinaskingJonestoplagiarizethereportandmayhaveviolatedseveralStandards,includingStandardIV(C)ResponsibilitiesofSupervisors.However,hehasnotviolatedtheprohibitionagainstplagiarisminStandardI(C).Jones,ontheotherhand,evenifactingontherequestofhersupervisor,willviolateStandardI(C)Misrepresentation.Makingminorchangestoareportdoesnotmakeityourown.Question6#45 217 Youranswer:Awascorrect!AccordingtoStandardII(B)MarketManipulation,membersandcandidatesshouldnotengageinanypracticethatwouldartificiallyinflatetradingvolumeordistortprices.However,thisStandarddoesnotprohibittransactionsdonefortaxpurposes.Inthiscase,therewasnointenttomisleadmarketparticipantsastothestockpriceofSafetyAirlines,andthetradeswereundertakentotakeadvantageofalegitimatetaxstrategy.ThustherehasbeennoviolationofStandardII(B)oranyotherStandard.Question7#45 218 Youranswer:Dwascorrect!StandardI(B)IndependenceandObjectivityallowsinvestorpaidresearchbutrequiresthatmembersandcandidateslimitthetypeofcompensationtheyacceptforwritingaresearchreportsothatitisnotdependentontheconclusionsoftheresearchreport.Bestpracticeisforanalyststoonlyacceptaflatfeeforsuchcompanypaidresearchreports.Suchresearchshouldalsoincludecompletedisclosureofthenatureofthecompensationreceivedforwritingsuchareportsothatinvestorswillnotbemisledastotherelationshipbetweentheanalystandthecompany.杨 13 818 157537CFA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 $12 0,whichwasacashoutflow.Question48#45259Youranswer:Cwascorrect!Question49#45 260 Youranswer:Cwascorrect!Whenusingthedirectmethodofcalculatingoperatingcashflows,depreciationandamortizationarenot揳ddedback?(tonetincome)becausewedon抰beginwithnetincomeunderthedirectmethod.Depreciationandamortizationarenoncashchangesandarenotusedunderthedirectmethod.Theotherstatementsaretrue.Interestpaymentsondebtaffectcashflowfromoperations.Whenusingtheindirectmethod,ananalystshouldaddanylossesonsalesoffixedassetstonetincomesincetheyarenotoperatingcashflows.Question50#45 2 61 Youranswer:Dwascorrect!Inaperiodofrisingprices,LIFOresultsinhigherCOGS,lowertaxes,lowernetincome,lowerinventorybalances,lowerworkingcapital,andhighercashflowsduetolesstaxespaidout.Inafallingpriceenvironment,itisthereverse.Also,FIFOinventoryleadstooppositeresultsforbothrisingandfallingprices.Question 51 #45 262 Youranswer:Awascorrect!Paiddividend?5Saleofstock+275Retireddebt?25Financingcashflow +12 5杨 13 818 157537CFA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#45224Youranswer:Cwascorrect!UndertheCodeandStandards,Marshallhasanobligationtodisclosethatshereceivesspecialcompensationbasedontheamountofclienttradingvolume.StandardVI(A)DisclosureofConflictsrequiresmemberstodisclosetoclientsandprospectsallmattersthatcouldpotentiallyimpairthemember抯abilitytomakeinvestmentdecisionsthatare(andtogiveinvestmentadvicethatis)objectiveandunbiased.Question14#45225Youranswer:Bwascorrect!StandardVI(A)DisclosureofConflicts.Matlockmustdisclose (1) specialrelationships梔irectorshipsandconsultancies,(2)investmentbanking,(3)underwritingandfinancialrelationships,(4)brokerdealermarketmakingactivities,and(5)materialbeneficialownership.ThefactthatMatlock抯sonworksforKingCompanyisnotaconflictrequiringdisclosuretoclientsandprospectssincehissonisnotamanagerofthefirm,inwhichcaseitcouldbe.Question15#452 26 Youranswer:Dwascorrect!UnderStandardIII(E)PreservationofConfidentiality,membersandcandidatesshouldmaintaintheconfidentialityofinformationreceivedinthecourseoftheirprofessionalservicerelatingtobothcurrentandformerclients.Inthecaseofillegalactivity,however,Reillymayhavealegalobligationtoreporttheactivity.Ideally,heshouldconsultwithhisemployerfirstaboutwhatactionshemayberequiredtotake.Ofthechoicesgiven,seekingtheadviceofoutsidecounselastowhetherhehassuchanobligationunderlocallawandwhethertheactivityisindeedillegalistheonepermittedundertheStandard.Question 16 #45227Youranswer:Bwascorrect!杨 13 818 157537CFA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.Question 21 #45232Youranswer:Awascorrect!Inthissituation,thecoefficientofdetermination(R2)isthepercentageoftotalvariationinthedependentvariable(companysales)explainedbythevariationintheindependentvariable(industrysales).totalvariation(SST)=unexplainedvariation(SSE)+explainedvariation(SSR)So,thecoefficientofdeterminationcanbeexpressedas:AnR2 of0 .25indicatesthatthevariationinindustrychipsalesexplains25%ofvariationinsalesofTastyChips.Forasimpleregression(oneindependentvariable)thesquarerootoftheR2isthecorrelationbetweenthevariables,Question22#45233Youranswer:Awascorrect!Theaverageannualcompoundgrowthrateiscalculatedas:[ (1+ 0.25) (1? 0.25) (1+ 0.30) (1? 0.30)]0.25 ?1= 0. 9 61 1? 1=?.0389or?.89%.Aninitial $10 ,000investmentwouldbeworth10,000 (1. 25)(0.75) (1. 3)(0.7)=$8,5 31. Question23#45234Youranswer:Dwascorrect!杨 13 818 157537CFA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%.Question 31 #45242Youranswer:Awascorrect!Usingthestandardnormalprobabilitydistribution,,thechanceofgettingzeroorlessreturn(losingmoney)is1?0.9772=0.0228%or2.28%.Analternativeexplanation:theexpectedreturnis10%.Tolosemoneymeansthereturnmustfallbelowzero.Zeroisabouttwostandarddeviationstotheleftofthemean.50%ofthetime,areturnwillbebelowthemean,and2.5%oftheobservationsarebelowtwostandarddeviationsdown.About97.5%ofthetime,thereturnwillbeabovezero.Thus,onlyabouta2.5%chanceexistsofhavingavaluebelowzero.Question32#45243Youranswer:Cwascorrect!Accordingtothecentrallimittheorem,thesamplemeanforlargesamplesizeswillbedistributednormallyregardlessofthedistributionoftheunderlyingpopulation.Question33#45244Youranswer:Dwascorrect!Thecrowdingouteffectreferstoareductioninprivateborrowingandspendingasaresultofhigherinterestratesgeneratedbybudgetdeficitsthatarefinancedbyborrowingintheprivateloanablefundsmarket.Question34#45245Youranswer:Awascorrect!Aggregatehoursmeasuresthetotalnumberofhoursworkedinayearbyallemployedpeople.Aggregatehourstakesaccountofboththelevelofemploymentandtheaverageworkweek,makingitsuperiortoeitherofthosemeasuresasanindicatoroftotallaborperformed.Totallaborcompensationisameasureofrealwageratesthatincludeswages,salaries,andemployerpaidbenefits.杨 13 818 157537CFA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#453 01 Youranswer:Awascorrect!Ifcapitalmarketsareweakformefficientandsemistrongformefficient,nopubliclyavailableinformationcanbeusedtoearnabnormal(riskadjusted)returns.Question90#45302Youranswer:Bwascorrect!Timeline=$0now;$0inyear1;$0inyear2;$1inyear3.December 31, 2005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, 050,000December 31, 20 06 牋SharePrice牋NumberofSharesOutstanding牋MarketValueStockA牋 $15 5,000牋$75,000StockB牋$30牋 10 ,000牋$300,000StockC牋$25牋 12 ,000牋$300,000Total牋牋牋牋 $67 5,000杨 13 818 157537CFA资料专卖欢迎广大考友订购!彩色原版印刷书籍,用解释向您诠释真正原版影印,别家均是用我司书籍再次复印,没有 6 解释!买本公司notes看的舒心,用的放心,祝您一次通过!COGSFIFO=27,000? (1, 400 ?1, 200)=$ 26, 800.Question62#45273Youranswer:Bwascorrect!Capitalizingcoststendstosmoothearningsandreducesinvestmentcashflows.Itwillalsoincreasecashflowsfromoperationsandincreaseprofitabilityintheearlyyears.Question63#45274Youranswer:Awascorrect!Question64#452 76 Youranswer:Awascorrect!Firstfindthecurrentratio:Next,usealgebratosolveforthelevelofcurrentassetsthatwouldsatisfyacurrentratioof2.4:X =1, 200,000 .1, 200,000 ?1, 000,000=200,000socurrentassetswouldneedtoincreaseby$200,000.Dothesamethingforcurrentliabilities:X=4 16 , 667 .Currentliabilitieswouldneedtodecreaseby500,000?4 16 , 667 =$83,333.Question65#45277Youranswer:Bwascorrect!PMT=800,000;FV =10 ,000,000;N=5;I/Y=8.25;CPT→PV=$9,900,837杨 13 818 157537CFA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#45 269 Youranswer:Bwascorrect!OnlyStatementIIIisfalse.Inperiodsofdecliningprices,LIFOinventoryvalueswillbehigher,leadingtohigherassetandequityvaluesandlowerdebttoequityratios.FIFOinventoryvaluesarepreferredbecausetheybetterapproximatereplacementcost.FIFOCOGS=LIFOCOGS?changeinLIFOreserve.COGS=purchases+beginninginventory?endinginventory,sothereisanegativerelationbetweenCOGSandmisstatementsofendinginventory.Question59#45270Youranswer:Dwascorrect!Question60#452 71 Youranswer:Dwascorrect!Generally,LIFOcausesCOGStobelargeandnetincometobesmall,soswitchingtoFIFOshouldreversethis,forcingCOGSdownandincomeup.Sotheanswershouldbepositive.TheLIFOreservewentup90?85=+5,soswitchingtoFIFOwilldecreaseCOGSby5,000,whichwillincreasegrossprofitby5,000andnetincomeby(5,000) (1? 0.28)=+3 ,60 0.Question 61 #45272Youranswer:Bwascorrect!COGSFIFO=COGSLIFO?(endingLIFOreserve?beginningLIFOreserve)杨 13 818 157537CFA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.Question 111 #45334Youranswer:Bwascorrect!Calloptionsrepresentanobligationtoperforminthecaseoftheseller.Theowneroftheoption(buy)hastheright,butnotanobligation,topurchaseanunderlyinggoodataspecifiedpriceforaspecifiedtimefromtheseller.Question 112 #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. Question 113 #453 36 Youranswer:Awascorrect!Inaforeigncurrencyswap,bothpartiesexchangefullinterestpayments.TheNewZealandcompanypays6%variableonUSD(USD60,000).TheU.S.companypays7%fixedonNZD(NZD140,000).Question 114 #45338杨 13 818 157537CFA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#45 315 Youranswer:Bwascorrect!Aftertaxyield=pretaxyield (1? marginaltaxrate)=0. 06( 1? 0.28)=0.0432or4.32%.Question100#45 317 Youranswer:Dwascorrect!OfftherunTreasurysecuritiesrefertoolderTreasuryissues.PrefundedmunicipalbondsarebondscollateralizedbyanescrowofsecuritiesguaranteedbytheU.S.government.Revenuebondsaresupportedthroughrevenuesgeneratedfromprojectsthatarefundedwiththehelpoftheoriginalbondissue.Question1 01 #45 318 Youranswer:Bwascorrect!ABEYof8%isequivalenttoa6monthdiscountrateof8/2=4%.r= (1. 0748)0.50 ?1 r=0.0 367 or7.34%onabondequivalentbasisQuestion102#45320杨 13 818 157537CFA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;CF 1 andCF2 =1, 900;CF3=2,500;CF4=2,000.Discount =12 %.ComputeIRR=23 .19 %.Question72#45284Youranswer:Awascorrect!Reliabilityreferstoinformationthatcanbeverified(measuredaccurately)andhasrepresentationalfaithfulness(itiswhatitisreportedtobe).Withoutthesetwocharacteristics,datacannotberelieduponinmakinginvestmentdecisions.Reliableinformationshouldalsoreflectneutralityinthatitdoesnotconsidertheeconomicimpactofthereportedinformation.So,ChoicesB,CandDareallcharacteristicsofreliability.Predictivevalueisnotacharacteristicofreliability;itisassociatedwiththerelevanceofaccountinginformation.Question73#45285Youranswer:Awascorrect!Investorsshouldtakestepstoactuallydiscouragetheuseofthecorporatefundstopay揼reenmail.?Question74#452 86 Youranswer:Cwascorrect!CAPM=0.05 +1. 5(0. 06) =14 %Question75#45287Youranswer:Dwascorrect!Ifthefirmisallequityfinanced,thebreakevenpointforretainedearningsisThus,everydollarthatthefirmspendsontheircapitalbudgetwillbeequitydollars.Question 76 #45288杨 13 818 157537CFA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#45322Youranswer:Awascorrect!(?(8)(?.005)+(50)(?.005)2=+0.0400+0.0 012 5=+0.0 412 5,orup4 .12 5%.Thepricewouldthusbe $1, 000 1. 0 412 5= $1, 0 41. 25.Question104#45323Youranswer:Bwascorrect!CreatingaCMOcanredistributetheprepaymentriskamongthetranches,butitdoesnotaltertheoverallprepaymentriskofamortgagepassthroughsecurity.CMOsarecreatedfromMBS.AlthoughMBSandcallablebondsbothhavereinvestmentrisk,thecashflowsfromanMBSaredifferentinthatmortgageloansareamortizing.Couponbondsarenotamortizing,andabondcallusuallyinvolvesthewholeissue,whereasprepaymentsareforpartoftheoutstandingprincipal.TheMBSandcouponbonddoshareprepaymentriskbecausethecalloptionbenefitstheissuer,orhomeowner,nottheinvestor.Question105#45325Youranswer:Dwascorrect!Aputprovisionallowstheinvestortoputthebondbacktotheissuerifinterestratesrise.Thus,aputoptionbenefits(andmaybeexercisedby)theholder,nottheissuer.Theotherstatementsaretrue.Interestratefloorsbenefittheholderbyprovidingalowerlimit(orminimum)ontheinterestratethebondholderwillreceive.Tounderstandwhytheprepaymentrightgrantedtoamortgageholderbenefitstheissuer,rememberthattheissuerhereisthehomeowner.Thebankactsasapassthroughfromthehomeownertotheownerofabondcollateralizedbytheloan.Therighttoprepayifinterestratesdecreaseisabenefittothe杨 13 818 157537CFA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 #45 310 Youranswer:Dwascorrect!Whenconstructingsamples,researchersmustbevarycarefulnottoincludejustsurvivingcompanies,mutualfunds,orinvestmentnewsletters.Sincesurvivorstendtobethosethathavedonewell(byskillorchance),samplesofmutualfundsthathavea10yeartrackrecords,forexample,willexhibitperformancehistorieswithupwardbias.Mutualfundcompaniesregularlydiscontinuefundswithpoorperformancehistoriesorrolltheirassetsintobetterperformingfunds.Therefore,ChoiceDiscorrect.Question97#45 312 Youranswer:Bwascorrect!Thepriceofabondchangesintheoppositedirectiontothechangeininterestrates.Longterm,lowcouponbondsaremoresensitivethanshorttermandhighcouponbonds.Pricesaremoresensitivetoratedecreasesthantorateincreases(durationrisesasyieldsfall).Question98#45 313 Youranswer:Cwascorrect!ThefriendisincorrectabouttheTIPS(thecouponrateisfixed,theparvalueisadjustedforinflation)andiscorrectaboutthebidaskspreadforontherunissues(ontherunissuesaremoreliquidandthushaveanarrowerbidaskspread).杨 13 818 157537CFA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?200,000 ?60 ,000?35,000] (1? 0.35)?34, 919 +60 ,000=28,3 31. Question 118 #45342Youranswer:Cwascorrect!Thefeemayactuallybesubstantialsince,inadditiontopayingthemanageroftheFOF,afeemustbepaidtoeachhedgefundwithintheFOF.Question 119 #45343Youranswer:Awascorrect!Openendfundsredeemexistingsharesorissuenewsharesinaccordancewithinvestordemand.Closedendfundsharesarefixedinnumberandtradeonexchangesasthoughtheywerecommonstock.Question120#45344Youranswer:Dwascorrect!Longcommoditiespositionswouldtendtohedgetheriskthatbondswoulddeclineinvaluebecauseofincreasesininflationorbecauseofhigherinterestratesduetoanincreaseintheoveralllevelofeconomicactivity.Sellingbondfutureswouldhedgeagainstrisingrates.Interestrateputsincreaseinvalueasratesfallandwouldnotprovideahedge.杨 13 818 157537CFA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#45228Youranswer:Cwascorrect!Afirmcanincludenoncompliantperformancedatafortheperiodjustpriortotheperiodofcompliantperformancedata,aslongasnononcompliantdataforperiodsafterJanuary1,2001isincluded,allnoncompliantdataareidentified,andthewaysinwhichthedataarenoncompliantaredisclosed.Firmsmustsupplyalistofcompositesandcompositedescriptionsonlytoclientsandprospectsthatrequestit.Firmsmustaddoneyearofcompliantperformanceinformationeachyearuntilatotaloftenyearsdataarereported.Question18#45229Youranswer:Awascorrect!TheCFAInstitute抯GIPSrequirethat,toclaimcompliance,firmsmustpresentGIPScompliantperformanceinformationforaminimumoffiveyears,orsinceinceptionifinexistencelessthanfiveyears.Question19#45230Youranswer:Bwascorrect!Thisprobleminvolvesdeterminingthepresentvalueofanannuityfollowedbyfindingthepresentvalueofalumpsum.EnterPMT =10 ,000,N =10 ,andI/Y =14 .ComputePV=52, 16 1 . 16 . Thatisthepresentvalueofthe10yearannuity,4yearsfromtoday.Next,weneedtodiscountthatbacktopresentfor4yearstofindtheamountoftheinvestmenttoday.EnterFV=52, 16 1 . 16 , N=4,I/Y =14 ,PMT=0.ComputePV=30,883.59.Question20#452 31 杨 13 818 157537CFA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.Question82#45294Youranswer:Awascorrect!BasedontheCAPM,theportfolioshouldearn:E(R)=0.05 +1. 5(0 .15 ?0.05)=0.20or20%.Onariskadjustedbasis,thisportfolioliesontheSMLandisthusearningtheproperriskadjustedrateofreturn.Question83#45295Youranswer:Cwascorrect!Theseethicalissuesfallundertheheadingofindividualinvestorconcerns.Someinvestorswouldexcludethesetypesofinvestmentsduetotheirownpersonalpreferences.Question84#452 96 Youranswer:Awascorrect!Tofindthecorrelationcoefficientbetweenthetwostocks,wemustfirstfindthestandarddeviationsofeachstockandthenfindthecovariancebetweenthestocks.Thecorrelationcoefficientisthecovariancedividedbytheproductofthestandarddeviations.YearStock1(xavg)2Stock2(xavg)299 12 16 5000 15 49025 01 ? 12 1 10 25avg=8sum =1 86 avg=5sum=50杨 13 818 157537CFA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#452 51 Youranswer:Bwascorrect!Underperfectcompetition,eachfirmfacesaflatdemandcurve.Thismeansthepriceisconstantandthemarginalrevenuelineisflat.AcompanywillcontinuetoproduceaslongasMR>MC,sothecompetitivecompanywillproduceaslongasP>MC.ItwillstopwhenMC=MR=P.Question 41 #45252Youranswer:Cwascorrect!Intheshortrun,thedecisiontooperateisbasedonwhetherpricecoversaveragevariablecosts.Inthelongrun,averagefixedcostsmustbeconsideredaswell.Sunkcostsarehistoricalcosts.Sinkingfundsareestablishedtoretirelongtermdebt.Themarginalrevenuefromsellinganadditionalunitofoutputmustbeatleastasgreatasitsmarginalcostofproduction.Question42#45253Youranswer:Awascorrect!ToconvertMexicanpesopricestoU.S.dollars,divideby12.ShoesarecheaperinMexicoversustheU.S.(40versus50);soaretoys(3versus4)andhats(8versus10).Therefore,theU.S.shouldimportallthreegoodsfromMexico.Question43#45254Youranswer:Cwascorrect!TheAUDdepreciatedbecauseitnowtakesmoreAUDtobyaUSD.Acrossrateistheexchangeratebetweentwocountriesderivedfromtheirexchangerateswithathirdcountry.Directexchangeratesdon抰necessarilyinvolvetheU.S.dollar.杨 13 818 157537CFA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 =12 0 /10 =12 ,median =10 ,andmode =10 .Thedistributionisskewedtotheright,sothemeanisgreaterthanthemedianandmode.Generally,forpositivelyskeweddistributions,themodeislessthanthemedian,whichislessthanthemean.Inthiscase,themodeandmedianareequalbecausethenumberofobservationsissmall.Question24#45235Youranswer: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#452 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 #45237Youranswer:Bwascorrect!Subjectiveprobabilityisbasedonpersonaljudgment.Arandomvariableisaquantitywhoseoutcomesareuncertain.杨 13 818 157537CFA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 0.0825=$8 16 , 819 . 01 Yearendadjustment=8 16 , 819 . 01? 800,000=$ 16 , 819 . 01 Yearenddebt=$9,900,8 36. 51+ $ 16 , 819 . 01= $9, 917 ,65 5.52Note:Sincethisisadiscountbond,weknowthevaluewillincreaseeachyear,sowereallydidn抰havetodoanycalculationstoanswerthisquestion.Question 66 #45278Youranswer: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#45279Youranswer:Bwascorrect!Taxbenefitsarerealizedifthelesseeisinalowtaxbracketandthelessorisinahightaxbracket.Anoperatingleaseallowsthelessortoretainthe(greater)taxbenefitsfromdepreciatingtheasset.Forexample,thelessorbenefitsfromusingaccelerateddepreciationonitstaxreturns.Question68#45280Youranswer:Awascorrect!Operatingleasesareatypeofoffbalancesheetfinancing.Ananalystshouldcapitalizeoperatingleasestodevelopmorerepresentativeleverageratiosandtofacilitatecomparison...