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Home > CFA Institute > CFA Institute Certifications > CFA-LEVEL-1
CFA Institute CFA-LEVEL-1  Exam Questions & Answers
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CFA Institute CFA-LEVEL-1 Exam Questions & Answers


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  • Vendor: CFA Institute

    Exam Code: CFA-LEVEL-1

    Exam Name: CFA Level I - Chartered Financial Analyst

    Certification Provider: CFA Institute

    Total Questions: 3960 Q&A ( View Details)

    Updated on: Jul 01, 2026

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CFA-LEVEL-1 Online Practice Questions and Answers

Questions 1

If the p-value is ________ the significance level, the null hypothesis ________.

A. less than; can be rejected

B. none of these answers

C. more than; can be rejected

D. less than; cannot be rejected

Show Answer

Correct Answer: A

The lowest significance level at which the null hypothesis can be rejected is called the p-value of the test. Thus, if the p-value is less than the significance level, the null hypothesis can be rejected at that significance level. To fix this in your mind, think about the p-value as the maximum probability that the null hypothesis is true despite observing the value of the test statistic that you have in the sample at hand. For e.g., suppose the p-value for a given sample turns out to be 3%. Then, if you reject the null, the probability that you have made an error in rejecting it is at most 3%. Clearly, if a critic asked you, "Is the probability that you have made an error less than 5%?" your answer would be, "yes." The critic will then conclude that your test is significant at the 5% level and perhaps even at a lower level.

Questions 2

Which of the following best describes a type II error?

A. The probability of incorrectly failing to reject the null hypothesis.

B. (1 - the significance level).

C. The probability of incorrectly rejecting the null hypothesis.

D. The power of a test.

E. More than one of these answers is correct.

Show Answer

Correct Answer: A

A type II error occurs when one incorrectly fails to reject the null hypothesis. In most cases, the probability of a type II error is not expressly stated because the determination of this probability is inherently difficult. A type II error is contrasted by a type I error, which is defined as the act of incorrectly rejecting the null hypothesis.

Questions 3

Given that the risk-free rate is 7%, what is the value of a zero-coupon bond in which $10,000 will be paid in 15 years?

A. $4,759

B. $4,522

C. $5,628

D. Not enough information

E. $3,624

Show Answer More Questions

Correct Answer: D

In order to take the present value of the coupon and principal payments, one must know the required rate of return on the bond. The required rate of return is equal to the risk-free rate plus the risk premium. The risk premium is not given, so there is not enough information to answer the question.

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