Free CFA Level 1 practice question bank for June 2011 exam

Team DG is glad to announce that we will provide free CFA Level 1 sample questions everyday from February 10, 2011 till May 10, 2011. We had started a similar initiative for the December 2010 exam: http://www.daulatguru.com/finance-fo...idates#post885

We are partnering with Knowledge Varsity for this initiative:
http://www.daulatguru.com/images/sto...%20varsity.jpg


How it will work?

1. Existing users should login and subscribe to this thread. Some users may be automatically subscribed (depending on your profile settings) and can skip this step.

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2. New users can Register and then login to subscribe to this thread. Click here to learn more.

3. When you go to the Subscription page, make sure to choose "Daily updates by email" option from the "Notification Type" dropdown. Then click "Add Subscription".

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4. We will post a question everyday and members can discuss the answer in this forum.

5. We will post the solution and the next question on the following day.

All the best for your CFA Level 1 prep!

December 2010 Level I CFA exam results have been emailed to candidates and will be available tomorrow, 26 January'11, on CFA Institute's website, after 7:30pm IST. Candidates will need to login.

Dear CFA Candidates,

The CFA Institute has confirmed that the Delhi High Court has given them permission to hold the CFA exam in India on Sunday, 05 June 2011. This is a good news for many Indian students who were planning to fly to Kathmandu, Bangkok etc.:)

All test centers have limited seats, and test center change requests are granted on a first-come, first-served basis. So it is better that you send the request soon.

Regards,
Team DG

Thanks DG for your regular Updates :)

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Today's Question (Questions and answers provided by Knowledge Varsity)

Q#1: A firm had net sales of $2000 in year 2001 but due to bad economic environment the net sales in 2005 was $1500. What is the compounded annual growth rate in sales for this firm

A. -6.94%
B. 0.93%
C. -6.25%
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FV = PV*(1+r)^n
$1500 = $2000*(1+r)^4
r = -0.069395

So my guess would be A

Q # 1
Answer is A

Using Texas Bii Plus Calculator

PV = -2000
FV = 1500
N = 4
PYMT = 0

CMPT I = -6.94

Answer #1
hav calculated with my normal calculator ~_~ :confused:
-6.93%

Q1. Ans A

The compounded annual growth rate can be computed by:
(1+ CAGR)#of Years = (Final Sales / Initial Sales)

The number of years will be 4 years (from 2001 to 2005).

Plugging in the values will result in a CAGR = (1500/2000)1/4 -1 = -6.94%

Alternatively, the problem can be solved using a calculator.
Keep FV = -1500, PV = 2000, PMT = 0 ; N = 4; CPT -> I/Y => I/Y = -6.94%

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Today's Question (Questions and answers provided by Knowledge Varsity)

Q2. The difference in price between a 5 year zero coupon bond and a 10 year zero coupon bond issued by two AAA rated corporations is most likely due to the difference in:

A. Default Risk
B. Maturity
C. Inflation Risk

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Maturity risk?
B answer