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CFA1.001&mcs&0&N&Which of the following is NOT part of the mandatory requirements of the Global Investment Performance Standards (GIPS)?&Portfolio valuations must be based on the cost of acquisition.&Accrual accounting must be used for fixed-income securities.;All fee-paying discretionary portfolios must be included in at least one composite.;Convertible and other hybrid securities must be treated consistently across time and within composites.;&LOS: Study Session 1-5-e<br>Portfolio valuations must be based on market values. <br><br>Reference: Global Investment Performance Standards, AIMR, p. 7.&&&a&SS01.1&&&&&1:v&&&N.
CFA1.002&mcs&0&N&Interest is compounded quarterly and $1 million is invested today and will be worth $1.2 million in one year's time. The annual interest rate is closest to:&18.64%&17.82%;20.00%;21.91%;&LOS: Study Session 2-1-A-e <br>If the annual rate is r, the quarterly rate is (r/4), and the number of periods is 4.<br><br>The correct calculation is made as follows: <br><img src="/graphic/bfq.CFA.002.gif"><br><br>Reference: DeFusco, McLeavey, Pinto Runkle, Quantitative Methods for Investment Analysis, 2nd edition, Ch. 1, pp. 9-10.Here is the formula to use for the calcuation:<br><br&&&a&SS02.2&&&&&2:v&&&N.
CFA1.003&mcs&0&N&Which of the following statements is CORRECT?&The level of significance is the probability of rejecting the null hypothesis when it is true. &The alternate hypothesis is the hypothesis being tested.;A Type II error is rejecting the null hypothesis when it is true.;The alternate hypothesis should always contain the equals sign. ;&LOS: Study Session 3-1-C-b <br><br>The null hypothesis is the hypothesis being tested. A Type I error is rejecting the null hypothesis when it is true. The null hypothesis should always contain the equals sign.<br><br>Reference: DeFusco, McLeavey, Pinto Runkle, Quantitative Methods for Investment Analysis, 2nd edition, Ch. 7, pp. 326-327.&&&a&SS03.0&&&&&1:v&&&N.
CFA1.004&mcs&0&Y&Which of the following is NOT part of the mandatory requirements of the Global Investment Performance Standards (GIPS)?&Portfolio valuations must be based on the cost of acquisition.&Accrual accounting must be used for fixed-income securities.;All fee-paying discretionary portfolios must be included in at least one composite.;Convertible and other hybrid securities must be treated consistently across time and within composites.;&&&&a&SS01.1&&&&&1:v&&&N.
CFA1.005&mcs&1&Y&Interest is compounded quarterly and $1 million is invested today and will be worth $1.2 million in one year's time. The annual interest rate is closest to:&18.64%&17.82%;20.00%;21.91%;&Here is the formula to use for the calcuation:<br><br><img src="../../secure_html/data/tests/graphic/bfq.CFA1.003.gif">&&&a&SS02.2&&&&&2:v&&&N.
CFA1.006&mcs&2&Y&Which of the following statements is CORRECT?&The level of significance is the probability of rejecting the null hypothesis when it is true. &The alternate hypothesis is the hypothesis being tested.;A Type II error is rejecting the null hypothesis when it is true.;The alternate hypothesis should always contain the equals sign. ;&&&&a&SS03.0&&&&&1:v&&&N.