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  1. Home
  2. CFA Certification
  3. CFA-Level-I Exam
  4. CFA.CFA-Level-I.v2024-01-19.q367 Dumps
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Question 86

A beginning amount of $75,000 is invested at 13% per year. At the beginning of each year for the next 30 years, a withdrawal is to be made to pay insurance premiums. What is the largest premium this investment will support?

Correct Answer: B
BGN, PV = -$75,000; n = 30; i = 13%; CPT PMT = $8,854.69
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Question 87

An analyst has gathered the following information about a company: Net profit margin of 15%, Asset turnover ratio of 0.267, Equity multiplier of 4.5, Dividend payout ratio of 30%. What is the company's growth rate?

Correct Answer: C
g = (retention rate)(ROE) ROE = (net profit margin)(asset turnover)(equity multiplier) =
(.15)(0.267)(4.5) = 0.180 g = (1 - .3)(0.180) = (.7)(0.18) = 0.126 or 12.6%
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Question 88

Which technical indictor brings together momentum and trend?

Correct Answer: C
By comparing EMAs of different periods, the MACD line illustrates changes in the trend of a security. Then by comparing that difference to an average, an analyst can chart subtle shifts in the stock's trend. Therefore MACD brings together momentum and trend in one indicator.
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Question 89

If nonrecurring charges are really prior year expenses taken too late, then the practice of ignoring nonrecurring charges and focusing on recurring operating income results in

Correct Answer: B
If nonrecurring charges are really prior year expenses taken too late, then the practice of ignoring nonrecurring charges and focusing on recurring operating income results in an overestimation of the firm's earnings trend.
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Question 90

In 1995 the DEA found that 12% of teenagers (13-19 years) used illegal drugs. In 1999, to check to see if there was a change in usage 1000 randomly selected teens produced 100 teens that used illegal drugs. For this study, the null hypothesis, H is ______.
0

Correct Answer: C
Because the DEA is interested in a change the test is not directional- it is a two-tailed test.
The null hypothesis should be H : p = 0.12.
0
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