18 Best CFA Questions and Answers (Q&A) - ProProfs Discuss

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What is the probability that exactly two claims will be filled if Sweeter & Associates write 400 policies for the coming weekend, in the case below?

F. Ray, Student
Answered: Dec 26, 2018

The previous answer gives a formula to work with, which results in answer A) 0.0164. It is vaguely familiar to me, as I have not taken a math class in a couple of years. However, I am almost...Read More

2 Answers

1134 views

Is CFA difficult than CA?

John Smith
Answered: Dec 25, 2024

10-year, 10% coupon-this question is asking: given a change in yield, which of the bonds will exhibit the greatest price change? Of the four choices, the bond with the longest maturity and lowest...Read More

4 Answers

1046 views

What is the population standard deviation (in pounds)?

John Smith
Answered: Dec 25, 2024

About 4

Population variance = (Sum of squared deviation from the mean)/N. The mean is 210. Population variance = (36 + 25 + 9 + 4 + 16 + 4)/6 = 94/6 = 15.67. Population standard deviation...Read More

1 Answer

946 views

What will occur if a legal price floor is placed on a good below its free-market equilibrium?

Markda John
Answered: Jan 01, 2018

The correct answer to this question is that the equilibrium price will ration out the good. The equilibrium price is meant to be what someone would rationally pay for something when it has a...Read More

2 Answers

808 views

What will happen if the price of CD players decreases the demand curve for compact discs slopes downwards, and the supply curve slopes upwards(in the graph below)?

John Smith
Answered: Dec 25, 2024

The equilibrium price of compact discs will rise

Clearly CD players are a complementary good to compact discs. So if the price of CD players decreases the demand for them will rise and so...Read More

4 Answers

790 views

When is the demand for goods likely to be more elastic in the market?

John Smith
Answered: Dec 25, 2024

The greater the number of available substitutes for the good-the magnitude of the price elasticity of demand of a good depends on several factors - the availability of substitutes, the proportion of...Read More

2 Answers

785 views

Which factors will not cause a demand curve of a specific product to shift?

Robert Hazlewood, Senior Executive
Answered: Feb 28, 2019

Even if there is a change in the cost of the production for the products will not cause any changes with the demand curve. The change that it will do will be in the supply curve because they...Read More

2 Answers

757 views

What would be the least likely to occur if the basic assumption of the capital asset pricing model (CAPM), that there are no transaction costs is relaxed?

John Smith
Answered: Dec 25, 2024

Each investor can have a unique view of a security market line

If the assumption of no transaction cost is relaxed, then investors will correct mispricing only up to the point where...Read More

2 Answers

715 views

What does coefficient of skewness of +2.48 indicate?

M. Kennedy, Web Content Writer
Answered: Jun 28, 2018

All of the statements that are mentioned namely the mean is larger than the median and the tail of the distribution is to the right are connected to the +2.48. Take note that this is a positively...Read More

2 Answers

677 views

What is today's share price?

John Smith
Answered: Dec 25, 2024

0.268 and 0.332

Interval estimate can be found from p +/- z[p(1-p)/n]0.5. Here we have n = 1400, p = 414/1400 = 0.3 and z = 2.58 (for 99%). Therefore 0.3 +/- 2.58*0.01225 and we get 0.268...Read More

1 Answer

612 views

Which share is best to buy today?

John Smith
Answered: Dec 25, 2024

$24.80

First, estimate the price to earnings (P/E) ratio as: (0.45) / (0.124 0.065) = 7.63. Then, multiply the expected earnings by the estimated P/E ratio: ($3.25)(7.63) = $24.80

1 Answer

589 views

What percent of the observations will lie above the mean plus two standard deviations?

John Smith
Answered: Dec 25, 2024

2.5%

95% of the observations lie between plus and minus two standard deviations from the mean. Therefore, 2.5% lie over and above two standard deviations on each side of the mean.

1 Answer

575 views

A population consists of all the weights of all defensive tackles on 's football team. They are: Johnson, 204 pounds; Patrick, 215 pounds; Junior, 207 pounds; Kendron, 212 pounds; Nicko, 214...

Daulatguru
Answered: Dec 25, 2024

1 Answer

515 views

How do you calculate the value of a stock?

G.Kenneth
Answered: Jan 24, 2018

Stocks are a good investment that people can do in order to have or make money. Some people purchases stocks in order to sell them when they retire. However, if a person buys a stock that loses...Read More

1 Answer

465 views

How would two stocks having positive covariance affect the selling of the product?

Daulatguru
Answered: Dec 25, 2024

The rates of return tend to move in the same direction relative to their individual means

If one stock doubles in price, the other will also double in price is true if the correlation...Read More

1 Answer

436 views

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