CFA-Level-1 Chartered Financial Analyst Level 1

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Showing 4–6 of 12 questions

Question 4 (Equity Investment)

Which of the following best describes the relationship between the relative maturation of an industry and the retention ratio of companies within the industry? Further, what is the proposed relationship between expected growth and the relative maturity of an industry?

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  • Negative relationship; negative relationship

  • Positive relationship; negative relationship

  • Negative relationship; positive relationship

  • Negative relationship; no correlation

  • Positive relationship; positive relationship

Question 5 (Financial reporting and Analysis)

Which of the following best describes a statement of cash flows?

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  • A statement of cash flows details the cash inflows and outflows that are related to a company's operating, investing, and financing activities over a period of time.

  • A statement of cash flows summarizes the financial position of a company at a given point in time.

  • A statement of cash flows measures a company's financial performance over a specified period of time.

  • A statement of cash flows reports changes over a period of time in component accounts that comprise the ownership of a firm.

  • None of these answers.

Question 6 (Equity Investment)

Which of the following factors is not an underlying assumption of technical analysis?

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  • Supply and demand is driven by rational and irrational behavior.

  • Prices move in trends that persist for long periods of time.

  • The actual shifts in supply and demand cannot be observed in market behavior.

  • Prices are determined by supply and demand.