CFA Level 1 Formulas Study Questions with Correct Answers 100% Verified and Graded A+2024/2025

CFA Level 1 Formulas Study Questions with Correct Answers 100% Verified and Graded A+2024/2025 Price change based on convexity - Correct Answer -duration(change in yield)+1/2(convexity)(change in yield)^2 PV01 - Correct Answer (PV_ - PV+)/2 overfitting - Correct Answer treats noise as true parameters (uses spurious risk relationships), and is too complex to describe the data five monopoly properties - Correct Answer single seller of a highly differentiated product, no good substitutes, high costs/significant barriers of entry, firm has considerable pricing power, product is differentiated through non-price strategies such as advertising leveraged return on equity - Correct Answer rL = rU + (D/E)*(rU-rD) MOIC (Multiple of Invested Capital) - Correct Answer MOIC = (Realized value of investment + Unrealized value of investment) / Total amount of invested capital (which is paid-in capital less management fees and fund expenses GAAP Pension Expenses on income statement - Correct Answer defined contribution plan: contributions to defined contrib plan defined benefit plan: employee service costs for the period + interest expense accrued on the current pension obligation - expected return on plan assets corporate ESG factors - Correct Answer Environmental factors that are generally considered material in investment analysis include natural resource management, pollution prevention, water conservation, energy efficiency and reduced emissions, the existence of carbon assets, and adherence to environmental safety and regulatory standards. A specific concern among investors of energy companies is the existence of "stranded assets," which are carbon-intensive assets at risk of no longer being economically viable because of changes in regulation or investor sentiment