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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 251

Select the correct use of the Chartered Financial Analyst and CFA marks:
I). He is the only CFA in the company.
II). On his name card, Alex states "Alex Aalto, C.F.A.".
III). John has passed Japan-CFA, a CFA equivalent program.
IV). Ron Laidlaw, Chartered Financial Analyst(CFA), expected December 2011.

Correct Answer: C
I is incorrect since CFA can not be used as a noun or common name.
II is incorrect since Alex alters the letters CFA
III is incorrect since CFA is altered.
IV is incorrect since candidates must not cite the expected date of exam completion and award of charter.
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Question 252

Even though Mary's income is very low, she makes sure that she purchases enough milk for her family to drink. As her income rises, she does buy more milk. Which graph in Figure 5.3 best represents
Mary's Engel curve for milk?

Correct Answer: B
Note that C indicates that even if her income is very low (zero) she still buys "enough" milk.
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Question 253

A portfolio has an expected rate of return of 15% and a standard deviation of 15%. The risk-free rate is 6 percent. An investor has the following utility function: U = E(r) - 0.5Ao2. Which value of A makes this investor indifferent between the risky portfolio and the risk-free asset?

Correct Answer: C
6% = 15% - 0.5 x A x (15%)2 A = 8.
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Question 254

When the Federal Reserve lowers the federal funds rate, aggregate demand ____ and the growth rate of real GDP ____.

Correct Answer: B
A change in the federal funds rate will change three components of aggregate expenditure:
consumption, investment and net exports.
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Question 255

Municipal securities:

Correct Answer: C
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