Page 6 of 8 FirstFirst ... 45678 LastLast
Results 51 to 60 of 78

Thread: Free CFA Level 1 Practice Questions for June 2013 exam

  1. #51
    Active Member
    Join Date
    Mar 2010
    Posts
    28
    Rep Power
    10
    @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.

  2. #52
    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.

  3. #53
    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

  4. #54
    Active Member
    Join Date
    Mar 2010
    Posts
    28
    Rep Power
    10
    @Simplilearn :- Thanks for accepting my suggestion. Now, it's better.

    Regards,
    Prabir.

  5. #55
    Senior Member
    Join Date
    Jul 2009
    Posts
    117
    Rep Power
    11
    Quote Originally Posted by Simplilearn View Post
    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

  6. #56
    Active Member
    Join Date
    Nov 2009
    Posts
    24
    Rep Power
    10
    The answer for Question of the day: 5th March should be C.

  7. #57
    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.

  8. #58
    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

  9. #59
    Senior Member
    Join Date
    Aug 2009
    Posts
    108
    Rep Power
    11
    Quote Originally Posted by Simplilearn View Post
    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

  10. #60
    Active Member
    Join Date
    Nov 2009
    Posts
    24
    Rep Power
    10
    I guess the answer should be B.

Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •