Hard CFA Level I Practice Questions

124 free hard-difficulty CFA Level I questions, drawn live from KomFi's calibrated bank. These are the items that separate top scorers — every one carries a full explanation and trap analysis once you sign in.

1. If the fund's gross return is 4%, what is the performance fee?
2. If the property is purchased with 50% leverage at a 6.0% interest rate, the cash-on-cash return on equity is:
3. If NOI increases by 10% and the cap rate simultaneously expands to 6.6%, the value of the terminal:
4. If the required rate of return (r) is 9.0%, what is the implied constant growth rate (g) embedded in this cap
5. Based on the provided data, the market's implied perpetual growth rate for the property's NOI is:
6. If the cost of capital is 8%, Oakridge should choose the project with the:
7. If the cost of equity is 12%, the pre-tax cost of debt is 7%, and the tax rate is 25%, the WACC is closest to:
8. If the required rate of return is 8%, the Profitability Index (PI) of the project is closest to:
9. If the company increases its financial leverage, the cost of equity will:
10. Sable Payments is a startup with highly volatile cash flows and few tangible assets. Compared to a mature util
11. According to the 'Pecking Order Theory', if Northline Timber needs to fund a new project, it will prefer to us
12. What is the component cost of preferred stock (r_p) for Juniper Health?
13. If the project is funded by 100% debt at an interest rate of 6%, but the firm's WACC is 10%, which rate should
14. Solstice Utilities is considering a new project. The firm's current debt is trading at par with a 5.0% yield.
15. If Amberfen decides to proceed with the project, the value of the firm will:
16. If Amberfen Pharma uses the Internal Rate of Return (IRR) as its primary decision tool, which of the following
17. What is the annual incremental after-tax operating cash flow for this project?
18. The rate at which both projects have the same NPV is known as the:
19. What is the weight of debt (w_d) that should be used in the WACC calculation?
20. What is the cost of debt component used in the WACC?
21. If the call trades at 4.50, the arbitrage-free price of the put is closest to:
22. According to put-call parity (c + Ke^-rT = p + S), the manager should:
23. According to put-call parity (assuming no dividends), the price of a 1-year European put option with an exerci
24. Kestrel Grid is long a natural gas futures contract. If the market is in contango and the spot price of natura
25. Juniper Health identifies a market in 'backwardation'. This suggests that the 'convenience yield' is:
26. Using a one-period binomial model, the risk-neutral probability of an up-move (π) is closest to:
27. If the local inflation rate was 3%, the real total return is closest to:
28. If the corporate tax rate is 25% on all interest income and expected inflation is 3.0% annually, which of the
29. According to covered interest rate parity, the one-year USD/EUR forward rate is closest to:
30. When an economy is in a recession and real GDP is falling, automatic stabilizers like unemployment insurance u

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