Chartered Financial Analyst® CFA® 2011 CFA Level 1 Sample Exam Questions and Answers • 2011 CFA Level 1 Sample Exam Version 1-2 2011 CFA Level 1 Sample Exam 2011 Level 1 Sample Exam Volume 1 SS1 -Ethics and Professional Standards 1. Abasi Hasina‚ CFA‚ signed an employment contract with a non-compete clause restricting him from working for a competitor for three years after leaving the employer‚ an investment bank. After one year‚ Hsaina. quits his job for a position with an investment
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than at their net book value which would produce a higher rate of return on those assets. The DuPont analysis can be affected by the operating efficiency‚ the asset use efficient and the financial leverage. The operating efficiency is measured by profit margin. The asset use efficiency is used to measure by the total asset turnover. Financial leverage is measured by the equity multiplier. If I was CEO I would focus on the asset use efficiency. If products are staying in the possession of the company
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bought the stock on margin and the margin requirement was (a) 25 percent‚ (b) 50 percent‚ and (c) 75 percent? (Ignore commissions‚ dividends‚ and interest expense.) Initial Stock price per share $10 # of Shares Purchased 100 New Stock price per share $17.50 Gain = New Price - Initial Price $750.00 = ($17.50 x 100) - ($10 x 100) Purchase Price = Initial Stock price per share x # of Shares Purchased $1‚000 FORMULA: Percentage Return = Gain (Margin Requirement x Purchase
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purposes‚ day-trading is NOT allowed. - For any single security‚ the position limit is 10% of the initial cash balance. - Bonds‚ stocks‚ mutual funds‚ options‚ and futures are available for the trading. - Short-selling is allowed‚ but trading on margin is NOT allowed. - 28 financial markets are available for the trading. - For any other trading information‚ please visit the StockTrak web page. Midterm Oral Presentation: - 20-30 minutes for each group - No need to submit written report. - Date:
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use the stock margin account as an example: * You have $5000 to invest in a stock * You buy 100 shares of a $50 stock in a cash account ($5000) and the stock goes to $55 ($5500)-- you’re up $500 or 10% * Now we are going to use leverage-- a margin account to buy the stock * You buy 200 shares of the same $50 stock in a margin account ($10000 = $5000 your cash + $5000 borrowed) and the stock goes to $55 ($11000)-- you’re up $1000 or 20% (not counting the cost of the margin interest).
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48% Chapter 3 15. Dée Trader opens a brokerage account and purchases 300 shares of Internet Dreams at $40 per share. She borrows $4‚000 from her broker to help pay for the purchase. The interest rate on the loan is 8%. (LO 3-4) a. What is the margin in Dée’s account when she first purchases the stock? b. If the
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Introduction Strategic Capital Management‚ LLC is a hedge fund planning to make financial investments in Creative Computers and Ubid. Creative Computers sold approximately 20% of its Internet auction subsidiary‚ Ubid‚ to the public at $15 per share. Ubid’s stock price closed the first day of trading at $48‚ giving Ubid a $439 million market capitalization. On dec 9‚ Creative Computers had a market capitalization of $ 232 million (22.75 * 10‚238‚703 outstanding shares) whereas Ubid’s market capitalization
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Solution to Derivatives Markets: for Exam FM Yufeng Guo June 24‚ 2007 www.guo.coursehost.com c °Yufeng Guo ii Contents Introduction 1 Introduction to derivatives 2 Introduction to forwards and options vii 1 7 29 79 129 141 3 Insurance‚ collars‚ and other strategies 4 Introduction to risk management 5 Financial forwards and futures 8 Swaps iii CONTENTS CONTENTS www.guo.coursehost.com c °Yufeng Guo iv Preface This is Guo’s solution to Derivatives Markets (2nd edition ISBN 0-321-28030X)
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EC3314 – Financial Economics Fall 2013 Vinay P NUNDLALL Problem Set 1 Question 1 Explain what is meant by the following: a. A broker holding securities in street name A brokerage account where the customer’s securities and assets are held under the name of the brokerage firm‚ rather than the name of the individual who purchased the security or asset. Although the name on the certificate is not that of the individual‚ they are still listed as the real and beneficial owner and have the rights
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Calculating the Contribution Margin Constance Hall Lindemann HCA 311 Health Care Financing & Information Systems July 1‚ 2012 Instructor: Heather Ables Contribution margin is nothing more than a way to see if an organizations operation is profitable. The costs for any business will fall into two broad categories: fixed costs and variable costs. Fixed costs are those whose amounts hardly ever change which means they are fixed‚ steady and unchangeable. Variable by contrast‚ are costs
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