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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 61

What is the median of 26, 30, 24, 32, 32, 31, 27 and 29?

Correct Answer: A
Ordering the numbers we have 24,26,27,29,30,31,32,32. Since there is an even number of observations (8), the median is the average of the two middle observations (29 + 30)/2 = 29.5.
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Question 62

Ben Ripper pays insurance on his office building for coverage for the following year. He would record this transaction by

Correct Answer: B
Assets are increased with debits and decreased with credits. The Cash account must be decreased and the Prepaid Insurance account increased by the amount of the payment (Both are asset accounts). This transaction would be recorded as a debit to Prepaid Insurance and a credit to Cash.
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Question 63

A client's ability to take risk is mainly determined by these factors:
I). investment time horizon.
II). psychological factors.
III). level of financial knowledge.
IV). net wealth.

Correct Answer: B
II and III are factors that mainly affect the willingness to take risk.
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Question 64

Consider an American put option on March coffee futures contracts. The holder of a SHORT position in this American put option:

Correct Answer: B
The holder of the LONG position in this American option may exercise it on or before the expiration date.
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Question 65

A profit-maximizing monopoly will produce an output where

Correct Answer: C
A single-price monopoly never produces an output at which demand is inelastic. If it did produce such an output, the firm could increase total revenue, decrease total cost, and increase economic profit by decreasing output.
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