Free Access CFA.CFA-Level-I.v2023-07-10.q797 Practice Test (Page 83)

Question 406

Which of the following is not true?

A.Un-weighted, or equally-weighted, indexes must be rebalanced after every stock split.

B.Value-weighted indexes are more sensitive to large market capitalization stocks.

C.Un-weighted, or equally-weighted, indexes assign equal weight to all stocks.

Question 407

A securities analyst is preparing a list of questions to ask when paying a personal visit to a company whose stock is publicly traded. Which of the following should not be on the list?
I). Does the company plan new financing, and if so, what kind?
II). What do you expect earnings per share to be for the full year?
III). Are new acquisitions being considered?
IV). What has been the firm's ratio of debt to equity over the past three years?

A.IV only.

B.I and IV.

C.II and III.

Question 408

Barry Call has supervisory responsibility at DGR Brokerage House. Paul Harry an employee of DGR has committed an offence of the Code and Standards. What course of action should Barry follow in terms of Standard IV (C): Responsibilities of Supervisors, with respect to this violation?

A.Barry must initiate an investigation within a 90 day period to ascertain the extent of the wrong doing and pending the outcome of the investigation Barry should take all steps to ensure that the violation will not be repeated.

B.Barry must immediately initiate an investigation to ascertain the extent of the wrong doing and pending the outcome of the investigation Barry should take all steps to ensure that the violation will not be repeated.

C.Barry must immediately initiate an investigation to ascertain the extent of the wrong doing and no further action is needed.

Question 409

A front-end load mutual fund with a net asset value of $12.04 is being offer to investors at $12.35. The fund load would be closest to:

A.2.45%

B.2.51%

C.2.57%

Question 410

Which is true of a leptokurtic distribution?
I). It will be more peaked than the normal distribution.
II). It will have thinner tails than the normal distribution.
III). It will be less peaked than the normal distribution.
IV). It will have fatter tails than the normal distribution.

A.I and II.