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CFA Level I practice questions

207 free questions with answers and explanations.

Practice test
  1. 201.A company has beginning inventory of $100,000 and purchases $500,000 worth of inventory during the year. Its ending inventory is $120,000. What is the company's Cost of Goods Sold (COGS) for the year?Financial Statement Analysis
  2. 202.A company reports net income of $300,000. It has 1,000,000 common shares outstanding and 200,000 shares of 5% preferred stock with a par value of $10 per share. What is the company's Earnings Per Share (EPS)?Financial Statement Analysis
  3. 203.An analyst is reviewing a company's balance sheet. The company has total assets of $1,000,000 and total liabilities of $600,000. It also has 500,000 shares of common stock outstanding. What is the company's book value per share?Financial Statement Analysis
  4. 204.A financial analyst is evaluating two investment opportunities, Fund A and Fund B, over a one-year period. Fund A has a 40% chance of returning 15% and a 60% chance of returning 5%. Fund B has a 70% chance of returning 12% and a 30% chance of returning 4%. Which fund offers the higher expected return and by how much?Quantitative Methods
  5. 205.An investor sells a European put option with a strike price of $70 for a premium of $4. At expiration, the underlying asset's price is $65. What is the profit or loss from this position?Derivatives
  6. 206.A portfolio manager enters a long position in a European call option with a strike price of $100 and a premium of $5. At expiration, the underlying asset's price is $108. What is the profit or loss from this position?Derivatives
  7. 207.A trader enters a short position in a futures contract for 1,000 barrels of crude oil at a price of $85 per barrel. The initial margin is $7,000, and the maintenance margin is $5,000. On the following day, the futures price increases to $87 per barrel. What is the margin balance and will there be a margin call?Derivatives