Correct Answers: 1. -Shareholder int. over community 2. -vote all proxies 3. -board member excludes community involvement 4. -Cannot be selective in offering diff services. Must give everyone opportunity equally so statement was incorrect. - IPS must rebalance 5. -Duration not x 2…plug in. Straightforward 6. -Temporal was non realized non monetary 7. -Economy was short term bad, long term good. 8. -Mkt. Weight for duration 9. -NPV vs. IRR can give conflicting decisions 10. -FSA 1680 11. -Auto Z spread was best investment 12. -ROE same all three 13. -Profit Margin best using Equity method 14. -Financial Leverage explained ROE 15. -Int Burden explained ROE 16. -Alpha was 0% -1% 17. -Active vs. Passive on Treynor. Need to have Active otherwise passive leaves gaps. 18. -Remove short selling, change weights and rerun model 19. -Pure Play (not liquidity or preferred habitat) 20. -Franchise P/E 21. -Intrinsic P/E 22. -FCFF 23. -FCFE 24. -implied 14.17% 25. -NPV for 20% extra cost 26. -H Model 27. -Dividend 0.54 (EPS change x payout) (1/5) 28. -Adjusted pension expense – int cost + service cost – actual return on asset 29. -terminal cash flow 30. -closed end vs EFT = premium/discount 31. -Gamma/Delta 32. -Leveraging beta 33. -EV/EBITDA back out cash 34. -Capitalized interest = CFI 35. -Barg Power of Buyers 36. -True Securitization 37. -Lockout/non amortizing asset 38. -Value of Put 39. -Heteroskedasticity – variance of error term 40. -Prepayment not impacted as much by decline in int rates given high prepayment penalty 41. -CTA FSA 42. -Classical correct, New Growth incorrect 43. -Bond conversion factor needs to be added 44. -WACC minimized = Medium leverage given static tradeoff 45. -Premium conversion was 50% 46. -Duration was 0.7% 47. -Ok to signoff of paper if disagree with committee as long as opposition is reasonable and makes sense. Document disagreement (Cover you’re a$$) 48. -Crossborder lending is good. Disagree with investors leaving. 49. -GPM using all current is same as local currency 50. -recreating model from memory is ok 51. -R^2 vs. R^2adjusted spread increases as K increases 52. -FCFF vs. dividend difference is control perspective. 53. -Don’t have to have best execution in this specific case because client wanted it and signed off on it. Incorrect Answers: 1. -CFA highest standard was correct 2. -Block trades pro rata, short FIFO 3. -Hedge Funds ok for conservative investor 4. -Simulated performance ok cuz disclosed 5. -Durbin Watson 6. -GNMA vs. Non Agency = credit risk 7. -Credit Risk went to long position since long had positive value 8. -Sales/Asset = consolidation 9. -Persistence factor for RI 10. -FSA 1680-560 11. -SWAP 12. Depreciation – add 50% + 5 13. -Dummy Variable 14. -Quant Q – Can’t conclude given info 15. -Arbitrage synthetic call
Not interested. Do you have this year’s answers though? Question number with lettered answer will suffice. No explanations please. Thanks in advance.
Nice.
Mock 1 and Mock 2 were about 85% of last years test.
But what use are those if i don’t have the questions?
Where the hell are the other 35 questions?
MOCKS ARE NOT CLOSE TO THE LAST YEAR TEST.
Some people say mocks were last years tests, others not. WHAT’S THE DEAL? Were they or weren’t they?
many of the mock questions are from last year’s exam
Reading some of the answers it sounds a heck of a lot like Mock 2…
Yes. some of this answer looks familiar. It is good to know it is similar to last year. I guess we can expect similar difficulties.
I think the majority of repeaters have agreed that the CFAI Mocks are basically last year’s exam.
we should all count off for responsibility to remember the topic of 1 question so form the same list… would that be unethical? (if it was just the topic and not word for word question?) I’ll do #1 am/pm
i don’t understand what I’m looking at. answers to select questions from last year? where do you come up with these?
Man, this is like buying a bootleg dvd! You get most of the movie, then some parts are cut out. Then all the specualtion starts…lol