Question 16
The mean of sample with a known population variance of 25 was estimated as 12.5. The sample size was 22 and the sample variance was 28. Which of the following represents the appropriate 95% confidence interval for the normally distributed population?
Question 17
According to Standards of Professional Conduct, as per Standard VII (B): Reference to CFA Institute, the CFA designation, and the CFA program, which of the following ways is NOT considered holding oneself out to be a CFA Charterholder?
I). Placing the designation "CFA" or "CFA Charterholder" after ones name on a resume.
II). Placing the designation "CFA" or "CFA Charterholder" after ones name on a business card, brochure etc.
III). Orally referencing oneself as a current/active/practicing CFA Charterholder.
IV). Displaying the CFA charter in an office or work environment.
I). Placing the designation "CFA" or "CFA Charterholder" after ones name on a resume.
II). Placing the designation "CFA" or "CFA Charterholder" after ones name on a business card, brochure etc.
III). Orally referencing oneself as a current/active/practicing CFA Charterholder.
IV). Displaying the CFA charter in an office or work environment.
Question 18
What is the interest rate risk, in percentage price change, of a semiannual-pay 9%, 15-year bond with an 8.5% yield if rates decrease by 50 and 75 basis points?
Question 19
In accounting for a lease transaction classified as a capital lease, over the term of the lease:
Question 20
Which of the following interpretations of duration and convexity is true?
I). Effective duration does not take into account the bond price's sensitivity to credit risk.
II). Portfolio convexity is the weighted average of the individual bonds' convexities.
III). Portfolio convexity will only provide meaningful figures for changes in portfolio value, if there is a parallel shift in the yield curve.
IV). As long as their duration is the same, a bullet and barbell portfolio will always exhibit the same degree of interest rate risk.
I). Effective duration does not take into account the bond price's sensitivity to credit risk.
II). Portfolio convexity is the weighted average of the individual bonds' convexities.
III). Portfolio convexity will only provide meaningful figures for changes in portfolio value, if there is a parallel shift in the yield curve.
IV). As long as their duration is the same, a bullet and barbell portfolio will always exhibit the same degree of interest rate risk.