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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 416

If a researcher were to choose random days and calculate the difference in sales volume for the two fish markets in New Bedford, Massachusetts and analyze those differences, what type of experiment is being conducted?

Correct Answer: C
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Question 417

You have $1,000 to invest today. In order for your $1,000 investment to grow to $1,480.25 at the end of 10 years, the money must be invested at what interest rate?

Correct Answer: A
1/10
Rate = (1480.25/1000) - 1 = 4%.
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Question 418

What is the effect on the basic earnings per share (EPS) equation when the proceeds received from the exercise of a warrant must be used to retire debt?

Correct Answer: B
The exercise of the warrant increases the weighted number of shares in the denominator.
The retirement of debt will increase net income in the numerator since the firm will pay less interest.
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Question 419

WePay, Inc. made the following dividend declaration:
"The Board of Directors of WePay, Inc. has declared a regular quarterly dividend of $0.25 per share payable June 13, 2001 (a Wednesday) to all stockholders-of-record as of the close of business on May 17,
2 001 (a Thursday)."
Assuming a three day settlement for WePay stock and no holidays in the weeks surrounding the record and payment dates, determine the ex-dividend date.

Correct Answer: A
With a three day settlement, the ex-dividend date would be two days prior to the holder-of-record date, which would be Tuesday May 15, 2001. If an investor bought WePay on Monday
May 12, 2001, they would settle for it on Thursday May17, 2001 and would be the holder-of-record at the close of trading on that date. Hence they would receive the dividend. Alternatively, if they bought it on
Tuesday May 15, 2001, they would settle on Friday May 18, 2001 which is the day after the holder-of-record date. Hence they would not receive the dividend.
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Question 420

The following table gives the stock price, dividend, and percentage return for 10 months.
Month; Stock Price; Dividend; Total Return (%)
Jan; 76.3; 1.53; 9.81
Feb; 72.5; 1.45; -3.08
Mar; 70.4; 1.41; -0.95
Apr; 69.8; 1.4; 1.14
May; 71.2; 1.42;
Jun; 73.6; 1.47; 5.44
Jul; 73.7; 1.47; 2.13
Aug; 73; 1.46; 1.03
Sep; 69.5; 1.39; -2.89
Oct; 67.9; 1.36; -0.35
If one were to construct a frequency histogram for the stock prices using 3 classes, the first interval would be which of the following?

Correct Answer: A
If 3 intervals are to used then the length of the intervals is (76.3 - 67.9)/3 = 2.8, so the first interval would be from 67.9 up to 67.9+2. 8=70.7
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