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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 251

The head and shoulders pattern signals that

Correct Answer: B
Often coming at the end of an uptrend, the head and shoulders pattern is considered to be a reversal pattern, as the security typically heads lower after the completion of the pattern.
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Question 252

A contract places an obligation on a trader to sell a security at a fixed price to the other party on or before a specified date at the discretion of the latter. This is a

Correct Answer: C
An option is an obligation on the part of the writer. If the holder of a call option decides to exercise the option, the writer is obligated to sell the underlying at the fixed price, irrespective of the price of the underlying in the market.
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Question 253

Refer to the graph below. If the government set the selling price equal to the marginal cost, the firm in the graph would:

Correct Answer: B
At price P4, the average cost is greater than the average revenue, so the firm is sustaining losses.
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Question 254

Which of the following will reduce the US aggregate demand?
I). the economic recession in Japan and Western Europe.
II). a decrease in recession fears.
III). an increase in real interest rates in the US.

Correct Answer: B
An increase in the real interest rate makes both consumers durable goods and investment projects more expensive, and thus reducing the aggregate demand. The recession in Japan and Western
Europe will reduce demand of US goods (US exports) by people in these countries.
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Question 255

Sampling error is:

Correct Answer: A
Sampling error is the difference between the observed value of a statistic and the quantity it is intended to estimate.
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