# CFA Questions and Answers (Q&A)

John Smith

Population variance = (Sum of squared deviation from the mean)/N. The mean is 210. Population variance = (36 + 25 + 9 + 4 + 16 + 4)/6 = 94/6 = 15.67. Population standard deviation...Read More

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F. Ray, Student
The previous answer gives a formula to work with, which results in answer A) 0.0164. It is vaguely familiar to me, as I have not taken a math class in a couple of years. However, I am almost...Read More

415 views
Markda John
The correct answer to this question is that the equilibrium price will ration out the good. The equilibrium price is meant to be what someone would rationally pay for something when it has a...Read More

391 views
John Smith
10-year, 10% coupon-this question is asking: given a change in yield, which of the bonds will exhibit the greatest price change? Of the four choices, the bond with the longest maturity and lowest...Read More

331 views
John Smith
The greater the number of available substitutes for the good-the magnitude of the price elasticity of demand of a good depends on several factors - the availability of substitutes, the proportion of...Read More

327 views
Daulatguru
0.0164

This is a binomial probability. The probability of getting r successes out of n trials where the probability of success each trial is p and probability of failure each trial is q...Read More

293 views
Robert Hazlewood, Senior Executive
The answer to this is letter A. Even if there is a change in the cost of the production for the products will not cause any changes with the demand curve. The change that it will do will be in...Read More

290 views
John Smith
A decreasing marginal rate of substitution-the slope of an indifference curve is called the marginal rate of substitution (mrs). it is the rate at which an individual is willing to give up units of...Read More

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John Smith
9-you must first recall that the macauley duration of a zero-coupon bond is equal to its maturity. then, the modified duration of a zero-coupon bond is: macauley duration / 1+ i = 10 / 1.10 = 9.09....Read More

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John Smith
2.4 and mobile phones are a normal good

The income elasticity of demand is the percentage change in quantity demanded divided by the percentage change in income. Here we have 12/5 = 2.4...Read More

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John Smith
Marginal rate of technical substitution-an isoquant shows the combinations of two inputs (e.g. labour and capital) that a firm can use to produce a given quantity of output. in other words it shows...Read More

254 views
John Smith
The equilibrium price of compact discs will rise

Clearly CD players are a complementary good to compact discs. So if the price of CD players decreases the demand for them will rise and so...Read More

252 views
John Smith
Yield to maturity at the time of the investment

The reinvestment assumption states that reinvestment must occur at the YTM in order for an investor to earn the YTM. The assumption also...Read More

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John Smith
2.5%

95% of the observations lie between plus and minus two standard deviations from the mean. Therefore, 2.5% lie over and above two standard deviations on each side of the mean.