pm — CFA Level I Practice Questions

31 free CFA Level I questions on pm: 12 easy, 18 medium, and 1 hard, every one exam-realistic and fully explained once you sign in. This is the fastest way to turn pm from a weakness into a scoring area — drill it in 10-question reps with immediate feedback.

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1. To ensure that realized crisis correlations and empirical fat tails are automatically preserved without a para
2. According to the 'Two-Fund Separation' principle, all investors should hold the same portfolio of risky assets
3. Why does the CAPM only reward systematic risk and not idiosyncratic risk?
4. According to the CAPM, which asset must have a higher required return?
5. An analyst at Helion Rail is asked to identify the 'sustaina… — Which two inputs are required for this calcula
6. Which of the following events would most likely contribute to the systematic risk of Vesper Foods?
7. A BA II Plus user enters N=10, I/Y=6, PMT=0, and FV=2000. After pressing CPT PV, the result is -1116.79. The n
8. In the context of the 2027 Quantitative Methods curriculum, 'Big Data' preparation often involves identifying
9. A researcher at Helion Rail tests 500 different variables to find a statistically significant predictor of sto
10. Which statement correctly describes the Security Market Line (SML) in equilibrium?
11. Which measure is most appropriate for evaluating the performance of a fund that represents an investor's entir
12. If an investor's indifference curves are very steep, they most likely:
13. Under the 'Financial Data Science' reading (New for 2027), what is the primary purpose of 'Data Cleaning' in t
14. Oakridge Capital manages a portfolio with a variance of 400. The market variance is 225 and the portfolio's be
15. Which IPS constraint most directly addresses the impact of a high marginal tax bracket on a client's 'asset lo
16. Which of the following describes the difference between the Capital Market Line (CML) and the Security Market
17. Redhook Ports experiences a strike by its local crane operators. According to portfolio theory, this risk is:
18. In the CAPM framework, why is idiosyncratic risk not rewarded with a risk premium?
19. The Security Market Line (SML) graphs expected return against which measure of risk?
20. Kestrel Grid is considering adding a transmission-asset sleeve to a highly diversified institutional portfolio
21. When constructing a portfolio, 'risk shifting' typically refers to the use of derivatives to:
22. Redhook Ports is constructing a two-asset portfolio. Asset A has a standard deviation of 18% and Asset B has a
23. An analyst at Juniper Health calculates the M^2 measure for a fund that has a Sharpe ratio of 0.60. If the mar
24. Sable Payments identifies an asset with a negative beta. According to the CAPM, this asset's expected return s
25. An analyst at Juniper Health forecasts a return of 12% for a stock with a beta of 1.4. If the risk-free rate i
26. If a stock's returns are perfectly correlated with the market (ρ = 1.0), then its idiosyncratic risk is:
27. Kestrel Grid has a total return variance of 0.0900. If its beta is 1.2 and the market variance is 0.0400, its
28. An investor in Redhook Ports has a risk aversion coefficient A = 3 and is evaluating a portfolio with an expec
29. An analyst at Sable Payments calculates that a portfolio has an expected return of 11% and a beta of 1.2. The
30. An investor has a risk aversion coefficient (A) of 3. They are choosing between a portfolio with an expected r