5 questions will be shown from 30 free practice questions to prepare you for the CFA level 2 exam. Enjoy!
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1. The investment committee’s view on direct real estate investment is least likely correct with regard to:
. The investment committee is correct in that direct real investment will likely generate income and price appreciation, but their view on the diversification is incorrect. Real estate returns generally have low correlations with returns on other assets classes, such as stocks and bonds, and thus allow the endowment to diversify portfolio risk. . Investors in direct real estate can expect to generate income by leasing or renting the property. . Investors in direct real estate can expect price appreciation on the real estate investment.
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2. In her response to Silverman regarding the characteristics of the three valuation approaches, Lin is least likely correct with respect to the:
. Although Lin is correct that the DCF method takes into account the cash flows that investors care about, she is not correct in stating that DCF takes into account the cyclical nature of the real estate market. . Lin is correct about the cost approach. . Lin is correct about the sales comparison approach.
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3. Does LeCompte’s second statement during her TV appearance most likely meet the CFA Institute Research Objectivity Standards recommendations?
. The recommended procedures for compliance with Research Objectivity Requirement 11, Rating System, states that firms should prohibit covered employees from communicating a rating or recommendation different from the current published rating or recommendation. because she communicated a rating different from her current published rating contrary to Recommendation 11, which states that firms should prohibit covered employees from communicating a rating or recommendation different from the current published rating or recommendation. because the statement alone about issuing a new report is not a viola- tion. If she disclosed her new recommendation contrary to Recommendation 8, which recommends that reports and recommendations be issued at least quarterly, with additional updates recommended when there is an announcement of significant news or events by, or that might impact, the subject company.
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4. Based on the data in Exhibit 2, the GDP growth rate in Country A using Hollingsworth’s preferred method of calculation is closest to:
Hollingsworth;s preferred method of calculating the GDP growth rate is the Solow growth accounting equation, and the rate is calculated as follows: ΔY/Y = ΔA/A + α(ΔK/K) + (1 – α)(ΔL/L) where ΔY/Y = Growth in gross domestic product, GDP ΔA/A = Growth in total factor productivity = 1/5% ΔK/K = Growth rate of capital = 3.2% ΔL/L = Growth rate of labor = 0.4% α = Output elasticity of capital = 0.3 1 – α = Output elasticity of labor = 0.7 Thus, ΔY/Y = 1.5 + (0.3 × 3.2) + (0.7 × 0.4) = 1.5 + 0.96 + 0.28 = 2.74. The calculation did not apply (1 – α). ΔY/Y = 1.5 + (0.3 × 3.2) + 0.4 = 1.5 + 0.96 + 0.4 = 2.86 The inflation rate was incorrectly used in place of TFP in the calculation. ΔY/Y = 1.7 + (0.3 × 3.2) + (0.7 × 0.4) = 1.7 + 0.96 + 0.28 = 2.94
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5. The best answer to Napier’s question about the effect of Nanuk on Sunjet’s other comprehensive income is that Nanuk’s:
Nanuk is translated under the current rate method, so its translational exposure is its net asset position. The weakening CAD (see Exhibit 2) will generate a re-measurement loss in Sunjet’s other comprehensive income. It is the net asset position that is exposed to exchange fluctuations under the current rate method. Per Exhibit 2, the CAD is depreciating vs. the USD so would generate a loss. Candidates may think the CAD is strengthening. Nanuk’s net monetary liability position would generate a re-measurement gain under the temporal method, but it is the net asset position that is exposed to exchange fluctuations under the current rate method.
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腦海中有大膽的想法嗎分別並告訴我們
腦海中有大膽的想法嗎