CFA Level I: Ethics and Quant

How many sequential levels make up the CFA program?

• Three
• Four
• Five
• Two

Which body administers the CFA program?

• IRS
• SEC
• CFA Institute
• FINRA

How many topic areas does the Level I exam cover?

• Twelve
• Eight
• Seven
• Ten

The Standards of Professional Conduct are organized into ____ main standards.

• seven
• six
• five
• ten

The ____ of Ethics is a broad statement of principles.

• Rule
• Code
• Charter
• Standard

Integrity of Capital Markets forbids trading on material nonpublic information.

• True
• False

The Professionalism standard allows analysts to accept any gifts from clients.

• True
• False

Which concept is the cornerstone of Quantitative Methods?

• Market cap
• Time value of money
• Insider trading
• Beta

The current worth of a future amount is called the ____ value.

• present
• nominal
• future
• effective

Which is the basic future value formula?

• FV=PV+r^n
• FV=PV×r×n
• FV=PV×(1+r)^n
• FV=PV/(1+r)^n

More frequent compounding produces a larger future value for the same annual rate.

• True
• False

Continuous compounding uses the mathematical constant ____.

• r
• i
• e
• pi

A ____ is a series of equal payments made at regular intervals.

• bond
• annuity
• perpetuity
• dividend

When does an ordinary annuity make its payments?

• Mid-period
• End of period
• Randomly
• Start of period

A perpetuity is a stream of payments that continues indefinitely.

• True
• False