Excel Pie charts
A video on how and when to use Pie Charts in Excel - and how to edit them
@Nirmal_Analyst said:CFA level 1 question for 01-April-2013Hayden and Gill were discussing about effect of ESOPs on accounting statements and they made the following statementsHayden: Companies can get tax benefits when ESOPs are exercised which will be shown as part of operational activities. This may artificially increase the effective tax rate of the company which an analyst should adjust for analytic purpose.Gill: It is an irony that while money spent on stock buyback for issuing during exercise of ESOP is considered as financing cash flow the tax benefit arising out of this is considered as operational cash flow. This is results in a situation wherein more is the difference between ESOP strike price and actual stock price more will be the operational cash flow of the company.a) Both are wrongb) Only Hayden is wrongc) Only Gill is wrong
Ans B: Exercising of ESOP will happen when current market price is greater than strike price. This will lead to loss, which will result in effecting tax rate artificially decreasing and not increasing. Other statements are correct
CFA level 1 Question for 03-Apr-2013
Quant fund reported an average return and standard deviation of 22% and 9% respectively for last year. Algo Fund reported an average return and standard deviation of 18% and 12% respectively for the same period. If the risk free rate during the period is 5% , which portfolio is better on the basis of sharpe ratio
a) Quant is better
b) Algo is better
c) Both are equally preferable
Quant fund reported an average return and standard deviation of 22% and 9% respectively for last year. Algo Fund reported an average return and standard deviation of 18% and 12% respectively for the same period. If the risk free rate during the period is 5% , which portfolio is better on the basis of sharpe ratio
a) Quant is better
b) Algo is better
c) Both are equally preferable
CFA Level 1- Free Sectional Mock Test and Contest – Quantitative Methods
Dear All,A free sectional mock test is available on Quantitative for CFA level 1 candidates in the below link. Request you to attempt this for self-evaluating and understanding where do you stand in the run up to the exam. We will also be organizing 2 full length (240 questions each) mock tests in May 2013. The top scorer in this will get a free access to those mock tests in May
CFA Level I - Quantitative Methods - Mock Test Survey
Guys, is there any way to convert the CFA institute virtualshelf books into PDF format? I would like to get it handy on my devices. Any clues?
CFA level 1 question for 04-Apr-2013
Ratan and Ramesh were discussing about financial contracts and they made the following statements
Ratan: Financial contracts does not have any value of its own, they derive their value from the underlying securities. The simplest form of a contract is 'Forwards' and a 'Future' contract is a standardized 'Forward' contract.
Ramesh: A right to sell a security in future date is called 'put option'. If you buy an option to sell a security in future date, then you are 'Shorting a put option'.
a) Both are wrong
b) Only Ramesh is wrong
c) Only Ratan is wrong
CFA level 1 Question for 03-Apr-2013Quant fund reported an average return and standard deviation of 22% and 9% respectively for last year. Algo Fund reported an average return and standard deviation of 18% and 12% respectively for the same period. If the risk free rate during the period is 5% , which portfolio is better on the basis of sharpe ratioa) Quant is betterb) Algo is betterc) Both are equally preferable
Ans A: Sharpe Ratio = ( Return – Risk Free rate)/ Standard Deviation. Higher this ratio better it is because Sharpe ratio measures Additional return (over risk free return) per unit risk. So, higher the return per unit risk better it is.Sharpe ratio for quant = (22%-5%)/9% = 1.89Sharpe ratio of Algo = (18%-5%)/12% = 1.08 So Quant is better
CFA Level 1 question for 05-Feb-2013
John and Sidebottom were discussing about index weighting methodologies
John: The major disadvantage of equal weighted index is the weight of the stock in the index decreases during stock split. The market cap weighted suffers from a disadvantage of being unduly influence by big companies.
Sidebottom: It is easy for an Exchange Traded Fund (ETF) passively tracking a price index to outperform as ETFs receive dividends. The Market cap weighted index need to be re balanced frequently as market cap change every day.
a) Both are Wrong
b) John is right
c) Sidebottom is right
CFA level 1 question for 04-Apr-2013
Ratan and Ramesh were discussing about financial contracts and they made the following statements
Ratan: Financial contracts does not have any value of its own, they derive their value from the underlying securities. The simplest form of a contract is 'Forwards' and a 'Future' contract is a standardized 'Forward' contract.
Ramesh: A right to sell a security in future date is called 'put option'. If you buy an option to sell a security in future date, then you are 'Shorting a put option'.
a) Both are wrong
b) Only Ramesh is wrong
c) Only Ratan is wrong
Ans b: Buying a put option means Longing a put. Other statements are correct
CFA Level 1 question for 06-Apr-13
Happy Inc which uses LIFO inventory valuation system reported the following
2011 Inventory – 325
2012 Inventory – 345
2011 LIFO reserve – 35
2012 LIFO reserve – 45
For the year 2012 the 2012 Happy Inc reported as sales Rs.1250 crs and Gross profit of Rs.470 crs. An analyst makes the necessary adjustment for converting the inventory to LIFO and calculates happy Inc's Inventory turnover ratio. The analyst's estimate would be closest to
a) 3.33X
b) 1.98X
c) 2.05X
how much have u guys covered for the cfa level 1 june exam? i just started in the beginning of this month.. really nervous..
Does CFA have value in Europe ?
i know its late.. but anyone from delhi interested in forming a study group (for revision and discussion) on weekends...
CFA Level 1 question for 05-Feb-2013
John and Sidebottom were discussing about index weighting methodologies
John: The major disadvantage of equal weighted index is the weight of the stock in the index decreases during stock split. The market cap weighted suffers from a disadvantage of being unduly influence by big companies.
Sidebottom: It is easy for an Exchange Traded Fund (ETF) passively tracking a price index to outperform as ETFs receive dividends. The Market cap weighted index need to be re balanced frequently as market cap change every day.
a) Both are Wrong
b) John is right
c) Sidebottom is right
Ans A: The equal weight index will not be affected by stock split. It suffers from the disadvantage of requirement for frequent rebalancing. Market cap weighted index adjusts for weighting automatically it need not be rebalanced. Other statements are correct
CFA level 1 question for 09-April-2013
All else remaining equal during the initial years of life of an asset, the Operating Cash flow (CFO) of a company that follows Double declining Balance depreciation (DDB) for the asset compared to a company that follows Straight line (SL) depreciation for the asset would be
a) CFO of DDB company = CFO of SL company
b) CFO of DDB company > CFO of SL company
c) CFO of DDB company
CFA Level 1 question for 06-Apr-13
Happy Inc which uses LIFO inventory valuation system reported the following
2011 Inventory – 325
2012 Inventory – 345
2011 LIFO reserve – 35
2012 LIFO reserve – 45
For the year 2012 the 2012 Happy Inc reported as sales Rs.1250 crs and Gross profit of Rs.470 crs. An analyst makes the necessary adjustment for converting the inventory to LIFO and calculates happy Inc's Inventory turnover ratio. The analyst's estimate would be closest to
a) 3.33X
b) 1.98X
c) 2.05X
Ans C:
FIFO Inventory = LIFO inventory + LIFO Reserves
FIFO COGS = LIFO COGS – Increase in LIFO Reserves.
FIFO Inv 2012= 345+45 = 390; FIFO inv 2011 = 325+35=360;
Change in LIFO Reserves 2012 = 45-35=10
LIFO COGS 2012 = 1250-470 = 780
FIFO COGS 2012 = 780-10 = 770
Inventory Turnover = COGS/ Average inventory = 770/ Average (390, 360) = 770/375= 2.05X
FinShiksha - CFA Level 1 - Equities - Free Sectional Mock Test
Dear All,
A free sectional mock test is available on Equities for CFA level 1 candidates in the below link. Request you to attempt this for self-evaluating and understanding where do you stand in the run up to the exam.
CFA Level I - Equities - Mock Test Survey
CFA Level 1 question for 10-April-2013
If a bond trading at $ 98,000 today is expected to provide $ 100,000 in 160 days, calculate the Money Market Yield
a) 2.04%
b) 4.59%
c) 4.50%
Creating and Editing Column Charts - Video
A Video on Where and How to use Column Charts in Excel
http://www.youtube.com/watch?v=MVuq3wuaty4&list;=PL3E06C96C04AB0885&index;=13
CFA level 1 question for 09-April-2013
All else remaining equal during the initial years of life of an asset, the Operating Cash flow (CFO) of a company that follows Double declining Balance depreciation (DDB) for the asset compared to a company that follows Straight line (SL) depreciation for the asset would be
a) CFO of DDB company = CFO of SL company
b) CFO of DDB company > CFO of SL company
c) CFO of DDB company
Ans B: CFO of DDB will be higher.
Let us see how this works. Let us assume the company does not have capex or change in working capital requirements
For SL Company
Gross profit = 100; depreciation =25; EBT=100-25=75; Tax @33.3% =25; so Net profit = 75-25=50;
CFO = Net profit+ Non cash charges-capex-increase in working capital;
CFO= 50+25-0-0=75
For DDB company
Gross profit = 100; depreciation =35; EBT=100-35=65; Tax @33.3% =21.7; so Net profit = 65-21.7=43.3;
CFO =43.3+35 -0-0 = 78.3
The difference arises because of the tax shield on depreciation expenses. If the effective tax rate is zero then only CFO of SL company = CFO of DDB company