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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 31

Operating income from discontinued operations, and any gains or losses from their sale are

Correct Answer: A
Operating income from discontinued operations, and any gains or losses from their sale are segregated in the income statement.
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Question 32

Consider a normal distribution with MU = 67 and SIGMA = 144. If each score is raised by 7 points, what percentage of the new scores is less than 74?

Correct Answer: C
Since each score has been raised by 7 points, the mean will also be raised by 7 points. The new mean is 74. 50% of the scores will be less than the mean of a normal distribution.
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Question 33

Interest rate risk affects the yield to maturity earned by an investor when:

Correct Answer: B
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Question 34

The net carrying value of a plant is $3 million. The plant is categorized as assets held for use. Based on the firm's estimate the undiscounted future cash flows from the plant will total $650k a year for the next
5 years. The fair value of the plant is estimated to be $2.5 million. Under U.S. GAAP, the impairment loss should be:

Correct Answer: A
Since the carrying value ($3 million) is less than the undiscounted future cash flows
$ 650,000 x 5 = $3.25 million), no impairment loss should be recognized.
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Question 35

The lifetime of a 2-volt non-rechargeable battery in constant use has a normal distribution with a mean of 516 hours and a standard deviation of 20 hours. Ninety percent of all batteries have a lifetime less than

Correct Answer: C
The z-value corresponding to the proportion 0.9000 is 1.28. We need to use the formula x = u + z o, where z = 1.28 to get the correct answer, or x = 516 + 1.28 x 20 = 541.6.
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