CFA Readiness Test

10 questions, balanced across the exam's topics. Answer each one, then submit for your practice readiness estimate and per-topic breakdown. This is a practice estimate — not a prediction or guarantee of your official exam result.

Question 1

A good with price elasticity of demand of -0.5 has demand that is:

Unit elastic. Elastic. Inelastic. Perfectly elastic.

Question 2

An investor writes a cash-secured put. The max loss is:

Unlimited. Strike minus premium, if the stock goes to zero. The premium. Zero.

Question 3

This occurs when successful funds choose to report to databases:

Selection bias in general. Survivorship bias. Backfill (instant history) bias. Look-ahead bias.

Question 4

A portfolio returns 13.00% with beta 1.4; risk-free 3.00% and market 10.00%. Jensen's alpha is closest to:

3.00% 10.00% 2.20% 0.20%

Question 5

In hedge fund databases, survivorship bias leads to:

Correct estimates. Higher volatility. Understated returns. Overstated average returns.

Question 6

A 5-year 8% annual-coupon bond with face value $1,000.00 has a YTM of 6%. Its price is closest to:

$1,400.00 $1,084.25 $1,000.00 $747.26

Question 7

With a retention rate of 40%, required return 12.00%, and growth 5.00%, the justified trailing P/E is closest to:

14.3 5.0 5.7 8.6

Question 8

Increasing financial leverage will:

Increase ROE volatility and expected return to equity holders, while raising default risk. Reduce the cost of equity. Eliminate taxes. Always increase firm value.

Question 9

Priya trades ahead of a client block in involving the shares. Under Standard VI(B), the priority order is:

Employer first, then personal, then clients. Whoever shouts loudest. Personal accounts first, then clients. Client transactions first; personal and employee transactions must not disadvantage clients.

Question 10

Gamma capitalizes an expense that should have been expensed. The effect is to:

Have no effect on the balance sheet. Reduce net income. Understate assets and overstate expenses. Overstate assets and understate expenses.

Unanswered questions count as incorrect. Your answers are graded on the server; no answer key is sent to your browser.

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