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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 141

What is the term for the bias in your inferences resulting from excessive reliance on the empirical results of others in designing your own analysis?

Correct Answer: C
Data-snooping is the bias in your inferences resulting from excessive reliance on the empirical results of others in designing your own analysis.
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Question 142

You are using a supply and demand diagram to study the market for oranges. What impact would a decrease in the price of oil burned to keep oranges from freezing in the winter have on the market?

Correct Answer: C
A decline in the price of an input used in the production of oranges will shift the supply of oranges to the right. This is because the opportunity cost of producing oranges has decreased.
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Question 143

An automatic machine inserts mixed vegetables into a plastic bag. Past experience revealed that some packages were underweight and some were overweight, but most of them had satisfactory weight.
Weight % of Total Underweight 2.5 Satisfactory 90.0 Overweight 7.5
Three packages are selected from the food processing line. What is the probability of selecting and finding that all three of them are underweight?

Correct Answer: A
P(all three underweight) = 0.025*0.025*0.025 = 0.0000156.
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Question 144

Harold Kilmer's boss instructed him to assume coverage of a stock and maintain a buy rating. If
Harold were to do so, would this be ethical?

Correct Answer: A
Ethical is if the stock maintained a buy rating objectively. Harold's opinion must remain objective and independent.
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Question 145

A closed-end mutual fund is selling at a premium when:

Correct Answer: C
If the market price of a closed-end fund is greater than the net asset value, then the fund is trading at a premium.
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