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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 171

An estimator is efficient if:

Correct Answer: B
An estimator is efficient if no other estimator of the same parameter has a sampling distribution with a smaller variance.
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Question 172

Equipment with a purchase price of $20,000 and a book value of $12,000 was sold for $10,000. The effect on the cash flow statement, prepared under the indirect method, would be:

Correct Answer: B
Losses are added back to cash flows from operations since they were originally subtracted to calculate net income. By adding them back, it zeros out the effect of the loss. The entire cash proceeds are listed as a cash inflow under cash flows from investing.
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Question 173

An investor wishes to liquidate their position in an investment company. They do so by selling their shares on the NYSE. They were most likely invested in:

Correct Answer: B
Investors in closed-end funds liquidate their position by selling their shares in the secondary market.
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Question 174

Which of the following should be classified as investing cash flow?
I). purchase and sale of debt of other entities.
II). loans to other entities and collection of loans to other entities.
III). issuance and redemption of debt (bonds and notes).
IV). payments of interest on the company's debt securities.

Correct Answer: B
III is a financing activity, and IV is operating activity.
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Question 175

Which set of circumstances is most likely to result in a narrow confidence interval?

Correct Answer: B
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