1. Which of the following statements regarding the p-value is most likely to be correct? A. The p-value is the smallest level of significance at which the null hypothesis can be rejected. B. The p-value is the smallest level of significance at which the null hypothesis can be accepted. C. The p-value is the largest… Read More

1. Paul uses the stratified random sampling technique of categorization for his research project. He first divides the country into 15 regions; then for each region, he categorizes the population into three age groups; young, adults, and elderly. Finally, he divides these categories into males and females. The number of cells or strata the sampling… Read More

1. You toss a coin 14 times. The probability of getting exactly 6 tails is: A. 0.016 B. 0.183 C. 0.428 2. Which of the following is least likely to be a characteristic of a normal distribution? A. Skewness = 0 B. Kurtosis = 3 C. Mean > Mode 3. Which of the… Read More

1. Which of the following types of probability is most likely to be based on logical analysis? A. An empirical probability B. A priori probability C. A subjective probability 2. Professor A.F. comes across the following three statements by his students. Fatima: Covariance lies within the range -1 < Covariance < +1 Taimour: The… Read More

1. Statistical inference least likely involves which of the following steps? A. Forecasting. B. Estimation and judgment. C. Description of a data set. 2. Which of the following statements about arithmetic mean is most accurate? A. Deviations from the arithmetic mean indicate risk. B. The product of the deviations around the mean is equal… Read More

1. Alexander Stan plans to invest $1.5 million in a project today. The project is expected to pay $200,000 per year in perpetuity. The cost of capital is 8 percent. Will Stan benefit by investing in the project, as judged by the NPV rule? A. No, the project is not worth the investment. B. Yes,… Read More

Questions: 1. You are estimating the required rate of return for a particular investment. Which of the following premiums are you least likely to consider? A. Inflation premium B. Maturity premium C. Nominal premium 2. A three-year CD offers a stated annual interest rate of 10 percent compounded quarterly. Given an initial investment of $80,000,… Read More

Dear Level I Students, Welcome to the first post of my new CFA Question & Answers blog. I sincerely hope that you find the material here useful. With the exam date approaching fast, one of the biggest issues facing Level I candidates is retention. “I’m learning new material but forgetting what I did two… Read More