S. No.

Year 2012 Afternoon

Topic

Subtopic Time Value of Money

Quant

2012

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Measures of central tendency

2012

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Discounted Cash Flow Application

2012

Quant

Measures of central tendency

2012

Quant

Measures of central tendency

2012

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Sampling

2012

Quant

2012

Quant

Time Value of Money

2012

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Hypothesis testing

10

2012

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Time Value of Money

11

2012

Quant

Measures of central tendency

12

2012

Quant

Estimation

13

2012

Quant

Measures of central tendency

S. No.

Year

Topic

Subtopic

14

2009 Morning

Quant

15

2009 Morning

Quant

Time value of money

16

2009 Morning

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Time value of money

17

2009 Morning

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Discounted Cash Flows

18

2009 Morning

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Measures of central tendency

19

2009 Morning

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Measures of central tendency

20

2009 Morning

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Probability

21

2009 Morning

Quant

22

2009 Morning

Quant

23

2009 Morning

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Measures of central tendency

24

2009 Morning

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Estimation

25

2009 Morning

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Time value of money

26

2009 Morning

Quant

S. No.

Year

Topic

Subtopic

27

2012 Afternoon

Quant

Probability Distribution

28

2012 Afternoon

Quant

Time Value of Money

29

2012 Afternoon

Quant

Probability

30

2012 Afternoon

Quant

Time Value of Money

31

2012 Afternoon

Quant

Time Value of Money

32

2012 Afternoon

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Technical Analysis

33

2012 Afternoon

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Discounted cash flows

34

2012 Afternoon

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Probability

35

2012 Afternoon

Quant

Time Value of Money

36

2012 Afternoon

Quant

Charts

S. No.

Year

Topic

Subtopic

37

2010 Afternoon

Quant

estimation

38

2010 Afternoon

Quant

Measures of central Tendency

39

2010 Afternoon

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Sampling

40

2010 Afternoon

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Hypothesis Testing

41

2010 Afternoon

Quant

Hypothesis Testing

42

2010 Afternoon

Quant

Measures of central Tendency

43

2010 Afternoon

Quant

Time Value Of Money

44

2010 Afternoon

Quant

Discounted cash Flows

45

2010 Afternoon

Quant

Measures of central Tendency

46

2010 Afternoon

Quant

probability

S. No.

Year 2010 Morning

Topic

Subtopic Probability Distribution

47

Quant

48

2010 Morning

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Time Value of money

49

2010 Morning

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Measures of central tendency

50

2010 Morning

Quant

51

2010 Morning

Quant

Measures of central tendency

52

2010 Morning

Quant

Measures of central tendency

53

2010 Morning

Quant

Discounted Cash Flows

54

2010 Morning

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Probability Distribution

55

2010 Morning

Quant

Hypothesis Testing

56

2010 Morning

Quant

57

2010 Morning

Quant

Probability Distribution

S. No.

Year

Topic

Subtopic

58

2011 Afternoon

Quant

Measures Of Central tendency

59

2011 Afternoon

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60

2011 Afternoon

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Sampling

61

2011 Afternoon

Quant

Time Value Of Money

62

2011 Afternoon

Quant

Estimation

63

2011 Afternoon

Quant

Technical Analysis

64

2011 Afternoon

Quant

Time Value Of Money

65

2011 Afternoon

Quant

Probability Distribution

66

2011 Afternoon

Quant

Estimation

67

2011 Afternoon

Quant

Time Value Of Money

S. No.

Year

Topic

Subtopic

68

2011 Morning

Quant

Probability Distribution

69

2011 Morning

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Measures of central tendency

70

2011 Morning

Quant

Measures of central tendency

71

2011 Morning

Quant

Measures of central tendency

72

2011 Morning

Quant

Measures of central tendency

73

2011 Morning

Quant

Probability

74

2011 Morning

Quant

Time Value of monney

75

2011 Morning

Quant

Discounted cash Flows

76

2011 Morning

Quant

Hyppothesis Testing

77

2011 Morning

Quant

Hyppothesis Testing

78

2011 Morning

Quant

Hyppothesis Testing

79

2011 Morning

Quant

Measures of central tendency

80

2011 Morning

Quant

2012 Level I Mock Exam: Morning Session Question If the stated annual interest rate is 20% and the frequency of compounding is monthly, the effective annual rate (EAR) is closest to: A. 20%. B. 21%. C. 22%. For a positively skewed unimodal distribution, which of the following measures is most accurately described as the largest? A. Mode B. Mean C. Median A project offers the following incremental after-tax cash flows: Year Cash flow () 0 12,500 1 2,000 2 4,000 3 5,000 4 2,000 5 1,000 6 500 The IRR of the project is closest to: A. 2.4%. B. 4.4%. C. 5.5% Over a four-year period, a portfolio has returns of 10%, 2%, 18%, and 12%. The geometric mean return across the period is closest to: A. 2.9%. B. 3.5%. C. 8.1%. The following sample of 10 items is selected from a population. The population variance is unknown. 10 20 8 2 9 5 0 8 3 21 The standard error of the sample mean is closest to: A. 3.4. B. 3.6. C. 10.8. A subset of a population is best described as a: A. sample. B. statistic. C. conditional distribution. An analyst collects data relating to five commonly used measures of use of debt (leverage) and interest coverage for a randomly chosen sample of 300 firms. The data comes from those firms fiscal year 2011 annual reports. This data is best characterized as: A. time-series data. B. longitudinal data. C. cross-sectional data.

A financial contract offers to pay 1,200 per month for five years with the first payment made today. Assuming an annual discount rate of 6.5%, compounded monthly, the present value of the contract is closest to: A. 61,330. B. 61,663. C. 63,731. A two-tailed t-test of the null hypothesis that the population mean differs from zero has a pvalue of 0.0275. Using a significance level of 5%, the most appropriate conclusion is: A. reject the null hypothesis. B. accept the null hypothesis. C. the chosen significance level is too high. An investor deposits 2,000 into an account that pays continuously compounded interest of 6% (nominal annual rate). The value of the account at the end of four years is closest to: A. 2,525. B. 2,542. C. 2,854. A graphic depiction of a continuous distribution that shows the left tail to be longer than the right tail is best described as having: A. lepto-kurtosis. B. positive skewness. C. negative skewness. When an analyst is unsure of the underlying population distribution, which of the following is least likely to increase the reliability of parameter estimates? A. Increase in the sample size B. Use of point estimates rather than confidence intervals C. Use of the t-distribution rather than the normal distribution to establish confidence intervals Consider the following 20 items. 41 18 17 9 8 12 20 21 21 61 The median value of the items is: A. 3. B. 4. C. 5. 6 5 3 3 3 5 5 7 7 11

2009 Level I Mock Exam: Morning Session Question The yield to maturity on otherwise identical option-free bonds issued by the U.S. Treasury and a large industrial corporation is 6 percent and 8 percent, respectively. If annual inflation is expected to remain steady at 2.5 percent over the life of the bonds, the most likely explanation for the difference in yields is a premium due to: A. maturity. B. inflation. C. default risk.

A 24 year old is using the following information to plan her retirement: Current age---------------------------------------------------------------- 24 Expected retirement age ------------------------------------------------68 Life expectancy -----------------------------------------------------------93 Current annual expenditures------------------------------------------- $30,000 Expected inflation rate of current expenditures until retirement 3% Expected return on investment-----------------------------------------8% She assumes her consumption expenditures will increase with the rate of inflation, 3 percent, until she retires. Upon retiring she will have end-of-year expenditures equal to her consumption expenditure at age 68. The minimum amount that she must accumulate by age 68 in order to fund her retirement is closest to: A. $928,000. B. $1,176,000. C. $1,552,000. A project has the following expected cash flows: Time Cash Flow ($) 0 (125,000) 1 100,000 2 200,000 If the risk-free interest rate is 4 percent, expected inflation is 3 percent, the market risk premium is 8 percent and the Beta for the project is 1, the investments net present value (NPV) is closest to: A. $113,000. B. $124,000. C. $139,000. A 270-day U.S. Treasury bill with a face value of $100,000 sells for $96,500 when issued. Assuming an investor holds the bill to maturity, the investors money market yield is closest to: A. 3.63%. B. 4.84%. C. 4.93%. An analyst gathered the following annual return information about a portfolio since its inception on 1 January 2003: Year Portfolio return 2003 8.6% 2004 11.2% 2005 12.9% 2006 15.1% 2007 9.4% The portfolios mean absolute deviation for the five-year period is closest to: A. 3.76%. B. 6.83%. C. 7.68%.

An analyst gathered the following information about a common stock portfolio: Arithmetic mean return -------14.3% Geometric mean return -------12.7% Variance of returns ------------380 Portfolio beta -------------------1.35 If the risk-free rate of return is 4.25 percent, then the coefficient of variation is closest to: A. 0.52. B. 1.36. C. 1.53. If an analyst estimates the probability of an event for which there is no historical record, this probability is best described as: A. a priori. B. empirical. C. subjective. Which of the following statements best describes the relationship between correlation and covariance? The correlation between two random variables is their covariance standardized by the product of the variables: A. variances. B. standard deviations. C. coefficients of variation. Which of the following best describes the discrete uniform distribution? The discrete uniform distribution: A. has a finite number of specified outcomes. B. is based on the Bernoulli random variable. C. has an infinite number of unspecified outcomes. According to the central limit theorem, a sampling distribution of the sample mean will be approximately normal only if the: A. sample size is large. B. underlying distribution is normally distributed. C. variance of the underlying distribution is known. Which of the following is least likely to be a desirable property of an estimator? A. Efficiency B. Reliability C. Consistency Rent is $700.00 monthly and is due on the first day of every month. If the stated annual interest rate is 6 percent, the present value of a full years rent payments is closest to: A. $8,133. B. $8,173. C. $8,833.

An analyst gathers the following information about the price-earnings (P/E) ratios for the common stocks held in a portfolio: Interval P/E range Frequency I 8.00 16.00 20 II 16.00 24.00 52 III 24.00 30.00 24 IV 30.00 38.00 14 The relative frequency for Interval II is closest to: A. 47.27%. B. 52.00%. C. 65.45%. 2012 Level I Mock Exam: Afternoon Session Question If the distribution of the population from which the samples are drawn is positively skewed, and given that the sample size is large, the sampling distribution of the sample means is most likely: A. approximately normally distributed. B. to have a variance equal to that of the entire population. C. to have a mean smaller than the mean of the entire population. A project offers the following incremental after-tax cash flows: Year Cash flow () 0 12,500 1 2,000 2 4,000 3 5,000 4 2,000 The appropriate discount rate to use in evaluating the project is 8%. The NPV (in ) of the project is closest to: A. 1,780. B. 1,736. C. 922. If two events, A and B, are independent and the probability of A does not equal the probability of B (i.e., P(A) P(B)), then the probability of event A given that event B has occurred (i.e., P(AB)) is best described as: A. P(A). B. P(B). C. P(BA). Assume that the real risk-free rate of return is 3% and that the expected inflation premium is 5%. If the risk premium incorporates default risk, liquidity risk, and any maturity premium, an observed (nominal) interest rate of 12% implies that the risk premium is closest to: A. 4%. B. 8%. C. 10%.

When considering two mutually exclusive capital budgeting projects with conflicting rankings (one has the higher positive NPV, the other has a higher IRR), the most appropriate conclusion is to choose the project with the: A. higher IRR. B. higher NPV. C. shorter payback. A low price range in which buying activity is sufficient to stop a price decline is best described as: A. support. B. resistance. C. change in polarity. An investor purchases one share of stock for $85. Exactly one year later, the company pays a dividend of $2.00 per share. This is followed by two more annual dividends of $2.25 and $2.75 in successive years. Upon receiving the third dividend, the investor sells the share for $100. The money-weighted rate of return on this investment is closest to: A. 7.97%. B. 8.15%. C. 8.63%. Which of the following most accurately describes how to standardize a random variable X? A. Subtract the mean of X from X, and then divide that result by the standard deviation of X. B. Subtract the mean of X from X, and then divide that result by the standard deviation of the standard normal distribution. C. Divide X by the difference between the standard deviation of X and the standard deviation of the standard normal distribution. For planning purposes, an individual wants to be able to spend 80,000 per year, at the end of each year, for an anticipated 25 years in retirement. In order to fund this retirement account, he will make annual deposits of 6,608 at the end of each of his working years. What is the minimum number of such deposits he will need to make to fund his desired retirement? Use 6% interest compounded annually for all calculations. A. 29 payments B. 40 payments C. 51 payments A technical analyst has detected a price chart pattern with three segments. The left segment shows a decline followed by a reversal to the starting price level. The middle segment shows a more pronounced decline than in the first segment and again a reversal to near the starting price level. The third segment is roughly a mirror image of the first segment. This chart pattern is most accurately described as: A. a triple bottom. B. a head and shoulders. C. an inverse head and shoulders. 2010 Level I Mock Exam: Afternoon Session Question

An increase in which of the following items is most likely to result in a wider confidence interval for the population mean? A. Sample size B. Reliability factor C. Degrees of freedom An analyst determines that approximately 99 percent of the observations of daily sales for a company are within the interval from $230,000 to $480,000 and that daily sales for the company are normally distributed. The standard deviation of daily sales (in $) for the company is closest to: A. 41,667. B. 62,500. C. 83,333. A mutual fund manager wants to create a fund based on a high-grade corporate bond index. She first distinguishes between utility bonds and industrial bonds; she then, for each segment, defines maturity intervals of less than 5 years, 5 to 10 years, and greater than 10 years. For each segment and maturity level, she classifies the bonds as callable or non-callable. She then selects bonds from each of the subpopulations she has created. For the managers sample, which of the following best describes the sampling approach? A. Systematic B. Simple random C. Stratified random An analyst conducts a significance test to determine if the relation between two variables is real or the result of chance. His null hypothesis is that the population correlation coefficient is equal to zero and his alternative hypothesis is that the population correlation coefficient is different from zero. He gathers the following information: Value of the test statistic -------------------------2.8092 Critical value at the 0.05 significance level -----1.96 Critical value at the 0.01 significance level------2.58 The analyst most likely conducted a: A. one-tailed test and can reject his null hypothesis. B. two-tailed test and can reject his null hypothesis. C. two-tailed test and cannot reject his null hypothesis. The null hypothesis is most appropriately rejected when the p-value is: A. negative. B. close to one. C. close to zero. Under which measurement scale is data most likely categorized without being ranked? A. Ordinal B. Nominal C. Interval

On 7 January 2008, an investor purchases 100 shares of stock for $32.50 a share. On 7 January 2009, the investor purchases 100 more shares of the same stock for $36.70 a share. On 7 January 2010, the investor sells all 200 shares of the stock for $42.00 a share. The internal rate of return for this investment is best described as an example of a: A. geometric mean return. B. time-weighted rate of return. C. money-weighted rate of return. A 180-day U.S. Treasury bill has a holding period yield (HPY) of 2.375%. The bank discount yield (in %) is closest to : A. 4.640. B. 4.750. C. 4.875. The sample variance based on the following data points: -6.0 percent, 5.8 percent, 8.4 percent, and 9.7 percent is closest to: A. 0.000360. B. 0.003855. C. 0.005140. An analyst determines that 60 percent of all U.S. pension funds hold hedge funds. In evaluating this probability, a random sample of 10 U.S. pension funds is taken. Using the binomial probability function, , the probability (in %) that exactly 6 of the 10 firms in the sample hold hedge funds is closest to: A. 25.08. B. 27.99. C. 60.00. 2010 Level I Mock Exam: Morning Session Question A random variable with a finite number of equally likely outcomes is best described by a: A. binomial distribution. B. discrete uniform distribution. C. continuous uniform distribution. The bond-equivalent yield for a semi-annual pay bond is most likely: A. equal to the effective annual yield. B. more than the effective annual yield. C. equal to double the semi-annual yield to maturity. An analyst gathered the following information about a stock index: Mean net income for all companies in the index $2.4 million Standard deviation of net income for all companies in the index $3.2 million If the analyst takes a sample of 36 companies from the index, the standard error of the sample mean (in $) is closest to: A. $88,889. B. $400,000. C. $533,333. For an investment portfolio, the coefficient of variation of the returns on the portfolio is best described as measuring: A. risk per unit of mean return. B. mean return per unit of risk. C. mean excess return per unit of risk.

When using stock return data, a geometric mean return calculation is most likely preferred over a geometric mean calculation because: A. return data can be negative. B. return data can be less than one. C. the geometric mean return is closer in value to the arithmetic mean. An analyst collects the following set of past stock returns: -2.3%, -5.1%, 7.6%, 8.2%, 9.1%, and 9.8%. Which of the following measures of return is most likely the highest? A. Median return B. Geometric mean return C. Arithmetic mean return A 182-day U.S. Treasury bill has a face value of $100,000 and currently sells for $98,500. Which of the following yields is most likely the lowest? A. Bank discount yield B. Money market yield C. Holding period yield If a probability distribution is very similar to a normal distribution, then the kurtosis is best described as: A. leptokurtic. B. mesokurtic. C. platykurtic. The 95% confidence interval for the sample mean is -4.56 to 3.27. The null hypothesis is that the sample mean is equal to zero. The alternative hypothesis is that the sample mean is not equal to zero (two-tail test). The null hypothesis most appropriately should be: A. rejected at a 2.5% level of significance. B. rejected at a 5.0% level of significance. C. accepted at a 5.0% level of significance. Which of the following is most likely to be considered a momentum indicator? A. Put-call ratio B. Breadth of market C. Mutual fund cash position Compared to a normal distribution, a lognormal distribution is least likely to be: A. skewed to the left. B. skewed to the right. C. useful in describing the distribution of stock prices. 2011: Level I Mock Exam: Afternoon Session Question The following ten observations are a sample drawn from a normal population: 25, 20, 18, -5, 35, 21, -11, 8, 20, and 9. The fourth quintile (80th percentile) of the sample is closest to: A. 8.0. B. 21.0. C. 24.2. When calculated for the same data and provided there is variability in the observations, the geometric mean will most likely be: A. equal to the arithmetic mean. B. less than the arithmetic mean. C. greater than the arithmetic mean.

The Central Limit Theorem is best described as stating that the sampling distribution of the sample mean will be approximately normal for large-size samples: A. if the population distribution is normal. B. if the population distribution is symmetric. C. for populations described by any probability distribution If the stated annual interest rate is 9% and the frequency of compounding is daily, the effective annual rate is closest to: A. 9.00%. B. 9.42% C. 9.88%. All else held constant, the width of a confidence interval is most likely to be smaller if the sample size is: A. larger and the degree of confidence is lower. B. larger and the degree of confidence is higher. C. smaller and the degree of confidence is lower. The belief that trends and patterns tend to repeat themselves and are, therefore, somewhat predictable best describes: A. technical analysis. B. weak-form efficiency. C. arbitrage pricing theory. An investor purchases 100 shares of stock at a price of $40 per share. The investor holds the stock for exactly one year and then sells the 100 shares at a price of $41.50 per share. On the date of sale, the investor receives dividends totaling $200. The holding period return on the investment is closest to: A. 3.75%. B. 8.43%. C. 8.75%. A test statistic is best defined as the difference between the sample statistic and the value of the population parameter under H0 divided by the: A. sample standard deviation. B. standard error of the sample statistic. C. appropriate value from the t-distribution . In generating an estimate of a population parameter, a larger sample size is most likely to improve the estimators: A. efficiency. B. consistency. C. unbiasedness. Using a discount rate of 5%, compounded monthly, the present value of $5,000 to be received three years from today is closest to: A. $4,250. B. $4,305. C. $4,320. 2011: Level I Mock Exam: Morning Session Question

Assume that a stocks price over the next two periods is as shown below. Time = 0 Time = 1 Time = 2 S0 = 100 Su = 110 Suu = 121 Sd = 92 Sud,du = 101.20 Sdd = 84.64 The initial value of the stock is $100. The probability of an up move in any given period is 40% and the probability of a down move in any given period is 60%. Using the binomial model, the probability that the stocks price will be $101.20 at the end of two periods is closest to: A. 16%. B. 24%. C. 48%. A sample of 438 observations is randomly selected from a population. The mean of the sample is 382 and the standard deviation is 14. Based on Chebyshevs inequality, the endpoints of the interval that must contain at least 88.89% of the observations are closest to: A. 340 and 424. B. 354 and 410. C. 396 and 480. The following ten observations are a sample drawn from a normal population: 25, 20, 18, -5, 35, 21, -11, 8, 20, and 9. The mean of the sample is closest to: A. 14.00. B. 15.56. C. 17.20. Over the past four years, a portfolio experienced returns of -8%, 4% 17% and -12%. The geometric mean return of the portfolio over the four year period is closest to: A. -0.37% B. 0.25% C. 8.99% A sample of 25 observations has a mean of 8 and a standard deviation of 15. The standard error of the sample mean is closest to: A. 1.60. B. 3.00. C. 3.06. The probability of event A is 40%. The probability of event B is 60%. The joint probability of AB is 40%. The probability that A or B occurs or both occur is closest to: A. 40%. B. 60%. C. 84%. the terms of the loan call for the loan to be repaid over five years using equal monthly payments with an annual nominal interest rate of 8% and monthly compounding. The monthly payment is closest to: A. 608.29. B. 626.14. C. 700.00. The dollar discount on a U.S. Treasury bill with 91 days until maturity is $2,100. The face value of the bill is $100,000. The bank discount yield of the bill is closest to: A. 8.31%. B. 8.40%. C. 8.58%.

One is most likely to reject the null hypothesis when the p-value of the test statistic: A. is negative. B. exceeds a specified level of significance. C. falls below a specified level of significance. When an investigator wants to test whether a particular parameter is larger than a specific value, the null and alternative hypothesis are best defined as: A. H0: = 0 versus Ha: 0 B. H0: 0 versus Ha: > 0 C. H0: 0 versus Ha: < 0 A hypothesis test fails to reject a false null hypothesis. This is best described as a: A. Type I error. B. Type II error. C. test with little power Which of the following statements is most accurate? A. The first quintile generally exceeds the median. B. The first quintile generally exceeds the first decile. C. The first quintile generally exceeds the first quartile. Assuming no short selling, diversification benefit is most likely to occur when the correlations among the securities contained in the portfolio are: A. equal to positive one. B. less than positive one. C. greater than positive one.

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