# CFA Questions and Answers (Q&A)

F. Ray, Student
The previous answer gives a formula to work with, which results in answer A) 0.0164. It is vaguely familiar to me, as I have not taken a math class in a couple of years. However, I am almost...Read More

830 views
John Smith

Population variance = (Sum of squared deviation from the mean)/N. The mean is 210. Population variance = (36 + 25 + 9 + 4 + 16 + 4)/6 = 94/6 = 15.67. Population standard deviation...Read More

803 views
John Smith
10-year, 10% coupon-this question is asking: given a change in yield, which of the bonds will exhibit the greatest price change? Of the four choices, the bond with the longest maturity and lowest...Read More

697 views
Markda John
The correct answer to this question is that the equilibrium price will ration out the good. The equilibrium price is meant to be what someone would rationally pay for something when it has a...Read More

593 views
John Smith
The greater the number of available substitutes for the good-the magnitude of the price elasticity of demand of a good depends on several factors - the availability of substitutes, the proportion of...Read More

505 views
Robert Hazlewood, Senior Executive
Even if there is a change in the cost of the production for the products will not cause any changes with the demand curve. The change that it will do will be in the supply curve because they...Read More

485 views
John Smith
0.268 and 0.332

Interval estimate can be found from p +/- z[p(1-p)/n]0.5. Here we have n = 1400, p = 414/1400 = 0.3 and z = 2.58 (for 99%). Therefore 0.3 +/- 2.580.01225 and we get 0.268...Read More

453 views
John Smith
The equilibrium price of compact discs will rise

Clearly CD players are a complementary good to compact discs. So if the price of CD players decreases the demand for them will rise and so...Read More

389 views
John Smith
Each investor can have a unique view of a security market line

If the assumption of no transaction cost is relaxed, then investors will correct mispricing only up to the point where...Read More

334 views
John Smith
2.5%

95% of the observations lie between plus and minus two standard deviations from the mean. Therefore, 2.5% lie over and above two standard deviations on each side of the mean.

322 views
Markda John
The answer is \$19,090. As Hebaelrify has already shown the equation, I’ll attempt to explain why this is the right answer. A rate of return is how much of the money you get back as a...Read More

306 views
Daulatguru

Population variance = (Sum of squared deviation from the mean)/N. The mean is 210. Population variance = (36 + 25 + 9 + 4 + 16 + 4)/6 = 94/6 = 15.67. Population standard deviation...Read More

297 views
M. Kennedy, Web Content Writer
All of the statements that are mentioned namely the mean is larger than the median and the tail of the distribution is to the right are connected to the +2.48. Take note that this is a positively...Read More

283 views
Daulatguru
The rates of return tend to move in the same direction relative to their individual means

If one stock doubles in price, the other will also double in price is true if the correlation...Read More

282 views
John Smith