Test your knowledge 52

CFA Level III
#1
  1. Which of the following is a method for estimating P/E ? A. Direction of change approach B. Specific estimate approach C. Both 2. Which of the following asset classes perform best in periods of high inflation ? A. Real estate B. Cash C. Both 3. Which of the following are measures of economic activity ? A. GDP and output gap B. Recession C. Both 4. Grinold and Kroner approach is used to estimate … A. P/E ratio B. Expected return C. Both 5. Changes in Consumper spending are primarily driven by … A. Changes in Levels of employment and changes in savings data B. Changes in after tax income of people. C. Both Cheers :slight_smile:
#2
  1. C 2. A 3. C 4. A (Never heard of) 5 b
#3
  1. C 2. A 3.A 4. C 5. B
#4

C A A B C (but prolly wrong)

#5
  1. ---- 2. C 3. C 4. B 5. C
#6
  1. A 2. A 3. A 4. B 5. C
#7

GetSetGo, answers please.

#8

Proposed answers are 1. C 2. A 3. C 4. B 5. C Cheers :slight_smile:

#9

quality of questions are very low - not much value doing it… can we just copy & paste some from schweser qbank instead?

#10

^ Nobody is stopping you.

#11

GSG, I was wondering your answer to the question 2 agrees with CFA Volume 3, page 63. I am confused…

#12

tom18606: Both Real Estate and Cash perform well during periods of high inflation. But real estate because of its leverage performs even better than cash. The question is probably not one of direction ( as both will be positive) but of magnitude. Hope this helps. :slight_smile:

#13

Thanks GSG, that makes sense