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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 421

To measure relative risk an analyst should use:

Correct Answer: B
Tracking error is a measure of how closely a portfolio follows the index to which it is benchmarked.
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Question 422

Almost all bonds and currencies trade in:

Correct Answer: A
In a quote-driven market customers trade at the prices quoted by dealers.
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Question 423

Which of the following is not included in financing activities under U.S. GAAP?

Correct Answer: C
The payment of interest is included in operating activities.
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Question 424

If you believe that one should buy and sell companies in line with their accounting figures, you should use ______ to measure value of markets.

Correct Answer: B
A key belief behind the fundamental index methodology is that underlying corporate accounting/valuation figures are more accurate estimators of a company's intrinsic value, rather than the listed market value of the company.
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Question 425

A company has a callable issue outstanding. If the volatility of interest rates increases, all of the following statements are true EXCEPT

Correct Answer: B
Value of a callable bond = Value of equivalent straight bond - Call option.
Option value increases when interest rate volatility increases. Since investors have written a call option, when the option value is subtracted, value of a callable bond decreases.
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