Latest CFA Level 2 Exam Questions and Answers 2024, Sample Questions | SPOTO

The CFA Level 2 exam is a crucial milestone for aspiring Chartered Financial Analysts, testing advanced investment tools, portfolio management, and asset valuation. It is known for its depth and complexity, focusing on applying concepts to real-world scenarios. SPOTO offers the latest CFA Level 2 exam questions and answers for 2024, providing candidates with comprehensive study materials, sample questions, and mock exams to ensure thorough exam preparation. With SPOTO’s CFA Level 2 resources, you can review key topics, refine your problem-solving skills, and get a realistic sense of the actual exam. The practice questions and study guides cover essential concepts to help you build confidence and improve your chances of passing the exam on the first attempt. Prepare effectively with SPOTO’s trusted exam materials.

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Question #1

Are Emery's statements regarding the earnings yield and E/P ratio correct?

A. ne statement is correct and the other statement is incorrect

B. oth statements are correct

C. oth statements are incorrect

View answer

Correct Answer: A

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Question #2

An appropriate equity valuation technique for Sverig and L'Offre, respectively, would be the:Sygdg L'Offre

A. elative value approach Venture capital method

B. enture capital method DCF method

C. CF method Relative value approach

View answer

Correct Answer: B

Question #3

Are Statement 1 and Statement 2 made by Yan correct?

A. oth statements are correct

B. nly one of the statements is correct

C. either statement is correct

View answer

Correct Answer: A

Question #4

Are Can's liquidity constraint and unique circumstances constraint best characterized as significant or insignificant?

A. oth are significant

B. nly one is significant

C. either is significant

View answer

Correct Answer: B

Question #5

In addition to the factors noted by Petrovich, which of the following is likely to be the most important in the risk assessment of tax-backed municipal debt?

A. measure of the issuer's debt structure, such as debt as a percentage of total real estate value of properties subject to taxation

B. n evaluation of any user-charge covenants that specify how prices will be set on the product or service provided by the municipality with the proceeds of the bond issue

C. n evaluation of trends in the local employment level and economic environment, which permits an assessment of the stability of the revenue base and the ability of the municipality to service the debt in the future

View answer

Correct Answer: C

Question #6

Is Can's tax constraint best characterized as significant or insignificant, and is the return objective best characterized as average or above average? Tax constraint Return objective

A. ignificant Above average

B. nsignificant Above average

C. nsignificant Average

View answer

Correct Answer: A

Question #7

Which corporate event that Warner is analyzing is likely to have the largest effect on FCFE in 2009?

A. hare repurchase

B. hare offering

C. onvertible bond issue

View answer

Correct Answer: C

Question #8

The value of one share of FDS using the H-model is closest to:

A. 14

B. 16

C. 19

View answer

Correct Answer: A

Question #9

Compare the 2008 free CFO-to-long-term obligations ratio benchmarks to Marietta's ratio.Marietta is between the:

A. and BBB benchmark ratios

B. BB and BB benchmark ratios

C. B and B benchmark ratios

View answer

Correct Answer: B

Question #10

By accepting the trip from Quadrangle, has Harris complied with the CFA Institute Code and Standards?

A. arris may accept the trip since she maintains a significant relationship with Quadrangle that contributes to the performance of client accounts

B. arris may accept the trip since she disclosed the trip to her supervisor and compliance officer and accepted based on their approval

C. arris may not accept the trip since the offer from Quadrangle could impede her ability to make objective investment decisions on behalf of the client

View answer

Correct Answer: C

Question #11

As compared to the temporal method, the parent's fixed asset turnover for fiscal 2008 using the all-current method is:

A. igher

B. ower

C. he same

View answer

Correct Answer: A

Question #12

Which of Bloomquist's statements most likely applies to both the Prudent Man Rule and the Prudent Investor Rule?

A. tatement 1

B. tatement 2

C. tatement 3

View answer

Correct Answer: B

Question #13

Given Emery's dividend forecast for FDS, is the H-model the appropriate valuation model to use to value FDS?

A. es

B. o, the H-model is appropriate when the dividend growth rate declines at a linear rate for a short period of time during stage one, followed by a 1-year suspension in dividends before the previous dividend is reinstated, and then dividends grow at a long-term constant rate

C. o, the H-model is appropriate when the dividend growth rate grows during the first stage followed by a period of stable growth in dividends in stage two, followed by a dividend growth rate that declines linearly in perpetuity

View answer

Correct Answer: A

Question #14

Are the Japanese and Eurozone inflation forecasts provided by the econometrics department consistent with the inflation rates implied by the exact version of the international Fisher relation, given a U.S. inflation rate of 3%?

A. oth forecasts are consistent

B. either forecast is consistent

C. ne forecast is consistent and the other is not

View answer

Correct Answer: A

Question #15

Robbins should conclude that a key drawback to using the price-to-sales (P/S) ratio in the investment process is that P/S is:

A. ositive even when earnings per share is negative

B. ot appropriate for valuing the equity of mature companies

C. usceptible to manipulation with respect to revenue recognition

View answer

Correct Answer: C

Question #16

Has Michaels violated Standard 11(B) Integrity of Capital Markets: Market Manipulation with respect to any of the following?

A. he buy program is a violation

B. he liquidity activity is a violation

C. here is no violation

View answer

Correct Answer: C

Question #17

Based on the H-model, the implied expected rate of return for IJHS is closest to:

B. 0

C. 1

View answer

Correct Answer: C

Question #18

According to the Standards of Practice, with respect to the two offers from Adams and Baker, Harris:

A. ay accept both offers if she discloses them to her employer

B. ay accept both gifts only if she discloses them to her employer and receives permission

C. ust disclose the offer from Adams to her employer if she accepts it but must receive her employer's permission to accept the offer from Baker

View answer

Correct Answer: C

Question #19

Are Houlis and Timmons' statements concerning the investment policy statement made at the lunch meeting correct?

A. oth statements are correct

B. nly one statement is correct

C. either statement is correct

View answer

Correct Answer: B

Question #20

According to Standard IV Duties to Employers, which of the following is most likely required of Swamy must:

A. ecure written permission from her employer before performing services for the symphony

B. nform her immediate supervisor at Dillon in writing that she (Swamy) must comply with the Code and Standards

C. isclose to her employer any additional compensation she receives from Landmark Enterprises and secure written permission to serve on the board

View answer

Correct Answer: A

Question #21

An unexpected decline in the growth rate of the USD money supply would most likely cause:

A. he real USD interest rate to increase and the value of the USD to depreciate

B. he real USD interest rate to increase and the value of the USD to appreciate

C. he real USD interest rate to decrease and the value of the USD to appreciate

View answer

Correct Answer: B

Question #22

Robbins should conclude that patterns of persistence or reversals in returns provide the most appropriate rationale for valuation using:

A. nexpected earnings

B. elative-strength indicators

C. tandardized unexpected earnings

View answer

Correct Answer: B

Question #23

As compared to the temporal method, which of the following financial statement elements of the parent are lower under the all-current method?

A. ash and accounts receivable

B. epreciation expense and cost of goods sold

C. ommon stock and dividends paid

View answer

Correct Answer: B

Question #24

Does Garvey's acceptance of the gifts from Koons and Jones violate Standard 1(B) Independence and Objectivity?

A. ccepting Koons' gift was a violation

B. ccepting Jones' gift was a violation

C. either gift would result in a violation

View answer

Correct Answer: C

Question #25

During the lunch conversation, which CFA Institute Standard of Professional Conduct was most likely violated?

A. 11(B) Fair Dealing

B. V(A) Loyalty

C. (A) Reasonable Basis

View answer

Correct Answer: B

Question #26

A common risk factor faced by both IGS investors and the managers of the private equity firms is:

A. arket risk but not agency risk

B. gency risk but not market risk

C. oth market and agency risk

View answer

Correct Answer: A

Question #27

Assuming a tax rate of 34%, the underlying earnings per share (EPS) for FDS in 2008 is closest to:

A. 1

B. 1

C. 2

View answer

Correct Answer: B

Question #28

According to FDS's price-to-sales ratio for 2008, based on the post expansion announcement stock price, FDS is:

A. nderpriced relative to the industry

B. verpriced relative to the industry

C. roperly priced relative to the industry

View answer

Correct Answer: A

Question #29

In her estimation of Zenith's future growth rate, what standard did Garvey violate?

A. tandard 1(C) Misrepresentation regarding plagiarism

B. tandard V(A) Diligence and Reasonable Basis

C. oth 1(C) and V(A)

View answer

Correct Answer: B

Question #30

Using the information in the question and the following relevant portion of the interest rate and pricing trees, Rogers calculates the value of the callable bond at node B.Corresponding portion of the interest rate tree:3.44%3.15%2.77%Years 4.0 4.5Corresponding portion of the callable bond price tree:$100.00B----$100.00Years 4.0 4.5The price of the callable bond at node B is closest to:

A. 00

B. 01

C. 02

View answer

Correct Answer: A

Question #31

Suppose that Wilson expects the JPY/USD spot rate one year from now to fall by 2% from its current level. The foreign currency risk premium associated with the JPY is closest to:

A. 5

B. 1

C. 1

View answer

Correct Answer: B

Question #32

Wilson wants to approximate the forward discount/premium for the JPY against the USD 12 months from now. According to the approximate version of interest rate parity, the JPY would most likely trade at a:

View answer

Correct Answer: A

Question #33

Are Carr's willingness to accept risk and her ability to accept risk appropriately matched?

A. o

B. o

C. illingness and ability match

View answer

Correct Answer: C

Question #34

Did Garvey violate Standard 11(A) Material Nonpublic Infonnation when she purchased Vallo and Metrona?

A. uying Vallo was a violation

B. uying Metrona was a violation

C. either purchase was a violation

View answer

Correct Answer: C

Question #35

The 2008 free cash flow to the firm (FCFF) for Global Drug World (GDW) in dollars is closest to:

A. 87, 728

B. 95, 374

C. 102, 378

View answer

Correct Answer: A

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Latest CFA Level 2 Exam Questions and Answers 2024, Sample Questions | SPOTO

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Latest CFA Level 2 Exam Questions and Answers 2024, Sample Questions | SPOTO

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