# Free CFA Level 1 Practice Questions for June 2013 exam

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• 05-03-2013, 12:40 AM
Prabir Bansal
@Simplilearn :- One suggestion for you. Can u please mention answer to question with the date in Header like : ''Answer of the day-4th March''. It will be more easy to refer.

Regards,
Prabir.
• 05-03-2013, 10:59 AM
Simplilearn
Answer of the day: 4th March,2013

The correct option is C
2010 ROE = ((0.2 x 2) -0.08) x 1 x 0.7 = 0.224
2011 ROE = ((0.18 x 2) - 0.10) x 1 x 0.7 = 0.182
There is an increase in leverage at a higher interest rate as well.
• 05-03-2013, 11:02 AM
Simplilearn
Question of the day: 5th March,2013

Do "margin" in the stock market and "margin" in the futures market, respectively, mean that an investor has received a loan that reduces the amount of his own money required to complete the transaction?

A)No "Margin" in the stock market No "Margin" in the futures market
B)"Margin" in the stock market No "Margin" in the futures market
C)No "Margin" in the stock market "Margin" in the futures market
• 06-03-2013, 12:06 AM
Prabir Bansal
@Simplilearn :- Thanks for accepting my suggestion. Now, it's better.

Regards,
Prabir.
• 06-03-2013, 12:13 AM
anita123
Quote:

Originally Posted by Simplilearn
Question of the day: 5th March,2013

Do "margin" in the stock market and "margin" in the futures market, respectively, mean that an investor has received a loan that reduces the amount of his own money required to complete the transaction?

A)No "Margin" in the stock market No "Margin" in the futures market
B)"Margin" in the stock market No "Margin" in the futures market
C)No "Margin" in the stock market "Margin" in the futures market

The margin in both cases help in leverage. Ans: B
• 06-03-2013, 01:47 AM
mahesh
The answer for Question of the day: 5th March should be C.
• 06-03-2013, 11:24 AM
Simplilearn
Answer of the day: 5th March

The correct option is B
Margin in the stock market involves a loan used to buy securities whereas margin in the futures market is a down payment or a performance bond.
• 06-03-2013, 11:25 AM
Simplilearn
Question of the day: 6th March

An analyst estimates that an initial investment of \$100,000 in a technology start-up will pay \$1 million at the end of five years if the project succeeds and that the probability of survival for the start-up after five years is 50%. The required rate of return for the project is 20 percent. The expected net present value of the investment is closest to:

A)\$100,938.00
B)\$301,877.00
C)\$401,877.00
• 07-03-2013, 12:45 AM
Sriram Raju
Quote:

Originally Posted by Simplilearn
Question of the day: 6th March

An analyst estimates that an initial investment of \$100,000 in a technology start-up will pay \$1 million at the end of five years if the project succeeds and that the probability of survival for the start-up after five years is 50%. The required rate of return for the project is 20 percent. The expected net present value of the investment is closest to:

A)\$100,938.00
B)\$301,877.00
C)\$401,877.00

I guess it's A) \$100,938
• 07-03-2013, 02:08 AM
mahesh
I guess the answer should be B.
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