CFA Level 1 Free Practice Test

Log in and start practising

0 votes, 0 avg

5 questions will be shown from a total of 30 free practice questions to prepare you for CFA level 1 exam. Enjoy!

1 / 5

1. Which of the following statements regarding Internal Rate of Return (IRR) and Net Present Value (NPV) is/are most likely correct?

1: If the NPV and IRR methods give conflicting decisions for mutually exclusive projects, the IRR method should be used to select the project.
2: A project may have positive NPV even if its IRR is less than the cost of capital
3: IRR is the discount rate at which the NPV of the project is zero.
4: A project’s IRR can be positive even if the NPV is negative.

2 / 5

2. A bookstore earned USD200,000 over the past year. At a tax rate of 40%, that bookstore incurs an income tax expense of USD80,000. Under which of the following accounting systems would the expense typically be categorized as an operating activity?


3 / 5

3. Management fees in private equity are ________ those in hedge funds in that _________.

4 / 5

4. The early 21st century saw a few significant stresses on the stock market. The markets dipped deeper and more quickly than many were expecting might happen.

Which of the following statistical metrics most accurately describes this event?

5 / 5

5. The commodity market initially grew due to producers desiring a hedging vehicle. Recently institutions like pension plans and hedge funds have looked to commodities as a way to diversify and grow, respectively.

Which of the following least describes the impact this institutional money has had:

Free sign-up(click) to

1. skip this part 2. access all free questions 3. show explanations

Your score is

The average score is 61%


More CFA practice tests