CFA Level I
Materials are provided by CBSD and based on BeckerConviser content

1) You are an analyst with a large brokerage firm. When issuing a stock recommendation, to be in compliance with the CFA Institute’s Standards of Professional Conduct, you should ensure that the firm’s account executives do which of the following?

2) A stock with a coefficient of variation of 0.5 has a(n):

3) The law of comparative advantage explains why a nation will benefit from trade when:

4) Calculate return on equity when the pretax profit margin of a company is 20%, the effective income tax rate is 30%, asset turnover is 1.8, and the financial leverage ratio is 2.

5) A lessee prefers an operating lease, rather than a capital lease, for which of the following reasons?

6) Companies with high fixed costs and low variable costs:

7) The first step in determining the investment objectives of a client is to establish:

8) Which of the following statements is true if capital markets are efficient?

9) Call features on a callable bond make the bond riskier to the bond issuer because:

10) Forward contracts differ from future contracts in that: I - Forward contracts have credit risk, II - Forward contracts are unregulated, III - Forward contracts are more liquid than future contracts.