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Type: Posts; User: DG Mod

1. ## Thread: Free CFA Level 1 Practice Questions for December 2012 exam

by DG Mod
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69,633

### Q9 Answer C For finding the odds for; without...

For finding the odds for; without following the formula; we should think of odds for as
Probability the event will occur : Probability the event will NOT occur

=> Probability that...
2. ## Thread: Free CFA Level 1 Practice Questions for December 2012 exam

by DG Mod
Replies
75
Views
69,633

### Q8 Answer A First arrange the returns in...

First arrange the returns in ascending order
-10%, -5%, 2%, 3%, 4%, 7%, 8%, 10%, 12%, 18%

Now we need to find the position at which we will get the 4th quintile.
4th quintile is...
3. ## Thread: Free CFA Level 1 Practice Questions for December 2012 exam

by DG Mod
Replies
75
Views
69,633

Will the answer be the arithmetic mean of the price for the 3 periods?
Let’s find the arithmetic mean, which will be (\$100+\$125+\$80) = \$305/3 = \$101.67
Let’s try to build the...
4. ## Thread: Free CFA Level 1 Practice Questions for December 2012 exam

by DG Mod
Replies
75
Views
69,633

### Q6 Answer B Rather than getting into...

Rather than getting into complication, let’s work from basic reasoning.

Let’s assume that you had invested \$100 in the stock at T=0.
Since the first year return is 100%, the...
5. ## Thread: Free CFA Level 1 Practice Questions for December 2012 exam

by DG Mod
Replies
75
Views
69,633

### Q5 Answer A First Step: Find the semi-annual...

First Step: Find the semi-annual yield
Semi-annual yield = (1+EAY)^(1/2)– 1
=> Semi-annual yield = (1.05)^0.5 – 1 = 2.4695%

Second Step: Multiply the semi-annual yield by 2 to get...

by DG Mod
Replies
75
Views
69,633