Hey everyone! This blog deals with general questions on CFA. There are questions with the answers right here!
To all potential CF Analysts – it is like a treat for you! This will aid your preparation and will also help you gauge what your level of preparation is. That in turn will enable you to judge how much more time and effort you need to put into your #CFA Prep! These answers have aided my preparation enormously and I hope it helps you too.
Here is a summary of what has been covered in this discussion:
So without further ado, let’s look at some of these questions with their answers!
“If an investor puts $5,724 per year, starting at the end of the first year, in an account earning 8% and ends up accumulating $500,000, how many years did it take the investor?
a) 87 years b) 27 yrs c) 26 yrs”
“Answer is B. 8 Put- I/Y= 8, PV=0, FV=500000, PMT= -5724, N=?”
During this discussion on CFA, students raised a few interesting questions. Answers were also given by the students. One such example is:
I am appearing for 1:1 in June, and that would be my first attempt of a CFA exam. I would really appreciate suggestions from people who have cleared or already started working for the same in terms of a study plan and time that should be allotted for different sections, given that I work for 9 hrs.
What should be ideal time allotted for preparation and mocks and revision? “
“Plan a schedule as per your previous knowledge. If you have some previous knowledge in subjects just read the curriculum once and practice as many mocks as you can.
Or if you have not any previous knowledge start learning right know and finish the curriculum twice and then start practising mocks it help you to clear it in your first attempt.
Hope it helps and all the best for exam.”
As you can see, it is a general guideline on CFA Prep.
“Difference between Revaluation model and fair value: What is the exact the difference between those two in the context of NC Assets?”
“Revaluation is a method where you need to find out the fair value of Non - current tangible assets.”
Another interesting question stated by a student, Nik, is quoted below. See if you can figure it out before scrolling to the answer!
“I am looking at Kaplan, book 4, page 318, questions #8 & 9.1'm trying to figure out why the answer does not discount the year 2 constant growth to the 2nd power. This is the question #9 from the book:
Q9) Dividend grows at 25% for two years, after which growth will fall to a constant rate of 6%. If the discount rate is 10%, and most recently paid dividend was $1 the value of the Brown's stock using the multistage dividend discount model is:
Answer as per the book: $36.65 (because they divided the constant dividend model by 1.1, not 1.1 squared as I think it should be). What I think the answer should be: Dl: 1.25 D2: 1.56 Value: $1.2511.1 (1.56 / (.1 - .06)) / (1.1) squared = 33.54 Thanks in advance for looking into this!”
“Yes here the Answer by book is correct 36.65. Calculation is 1.25/1.1 + 1.25*1.25/(1.1)^2 + (1.25)^2 1.06/10°k-6°k/0.1N Here the answer comes 36.65”
If you have any queries, comments or questions feel free to post them in the comments section or visit our forum!
Global Association of Risk Professionals, Inc. (GARP®) does not endorse, promote, review or warrant the accuracy of the products or services offered by EduPristine for FRM® related information, nor does it endorse any pass rates claimed by the provider. Further, GARP® is not responsible for any fees or costs paid by the user to EduPristine nor is GARP® responsible for any fees or costs of any person or entity providing any services to EduPristine Study Program. FRM®, GARP® and Global Association of Risk Professionals®, are trademarks owned by the Global Association of Risk Professionals, Inc
CFA Institute does not endorse, promote, or warrant the accuracy or quality of the products or services offered by EduPristine. CFA Institute, CFA®, Claritas® and Chartered Financial Analyst® are trademarks owned by CFA Institute.
Utmost care has been taken to ensure that there is no copyright violation or infringement in any of our content. Still, in case you feel that there is any copyright violation of any kind please send a mail to firstname.lastname@example.org and we will rectify it.
2015 © Edupristine. ALL Rights Reserved.