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  1. Home
  2. CFA Certification
  3. CFA-Level-I Exam
  4. CFA.CFA-Level-I.v2022-03-26.q499 Dumps
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Question 51

A basic assumption of technical analysis in contrast to fundamental analysis is that:

Correct Answer: C
Technical analysis assumes the patterns are repeatable and prices can be projected.
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Question 52

When yields are above the coupon rate the price of a callable bond is dependent on _______ and when the yield is below the coupon rate the price is dependent on ________.

Correct Answer: A
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Question 53

A researcher randomly samples 100 citizens of Florida and finds that 95 of the citizens are literate.
The researcher then finds a 90% confidence interval. Which of the following is false?

Correct Answer: A
The procedure used for confidence intervals assumes that Np' > 5 and that N(1 -p') > 5.
Because this is not the case, 100(1 - 0.95) = 5, the researcher cannot conclude with 90% confidence that the percentage of Florida citizens that are literate is between 91.4% and 98.6%.
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Question 54

The CEO of a large brokerage house informs one of the analysts that he should change his opinion from a "sell" to a "buy" on company RDE, since the CEO of RDE is a good friend of the CEO of the brokerage firm, and is not happy with the sell recommendation out on his company. What should the analyst do?

Correct Answer: B
Members shall use reasonable care and judgment to achieve and maintain independence and objectivity in making investment recommendations or taking investment action. Consequently the analyst should not change his opinion to a buy, irrespective of whether his supervisor reviews the report.
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Question 55

A company signs a long-term construction contract for $10 million. In the first Year of the contract, costs to date totaled $4 million, of an estimated $8 million in costs. The company received cash payments of $7 million. The gross profit recognized in year one, under the percentage of completion method would be:

Correct Answer: B
Percentage-of-completion recognizes gross profit on a percentage basis. Since half the contract is completed ($4 million/$8 million), half the gross profit can be recognized. Gross profit is $10 less estimated costs of $8 million = $2 million/2 = $1 million.
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