LEVEL I PRACTICE EXAMS — VOLUME 2 Online Resources. How to Use This Book... Exam 1 Morning Session Afternoon Session Exam 2 Morning Session Afternoon Session . Exam 3 Morning Session i 129 Afternoon Session .... 161 Exam 1 Answers Morning Session Afternoon Session .. 193 210 Exam 2 Answers Morning Session Afternoon Session sno 227 on 242 Exam 3 Answers Morning Session, Afternoon Session . evseesenens 258 274Page 2 SCHWESER 2011 CFA LEVEL I PRACTICE EXAMS VOLUME 2. ©2010 Kaplan, Inc. All rights reserved. Published in 2010 by Kaplan Schweser. Printed in the United States of America. ISBN: 978-1-4277-2759-6 | 1-4277-2759-7, PPI 200-0081 If this book does not have the hologram with the Kaplan Schweser logo on the back cover, it was distibuced without permission of Kaplan Schweser, a Division of Kaplan, Inc. and isin divect violation ‘of global copyright laws. Your assistance in pursuing potential violators of this law is greatly appreciated. Required CFA Tnstiute® dislaimer: “CEA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. CFA Insicue (formerly the Assocation for Investment Management and Research) docs not endorse, promote, review, of warrant the accuracy ofthe products or services offered by Kaplan Schweser.” Certain materials contained within this text are the copyrighted property of CFA institute, The following is the copyright disclosure for these materials: "Copyright, 2011, CA Institute. Reproduced and. republished from 2011 Learning Outcome Statements, Level I, Il, and TIT questions from CEA® Program ‘Materials, CFA Institute Standards of Professional Conduct, and CFA Insticure’s Global Investment Performance Standards with permission from CFA Institute. All Rights Reserved.” “These materials may not be copied withoue written permission from the author. The unauthorized duplication ofthese note ea violation of global copyright ws and the CFA Tnstcuce Code of Ethics {Your assistance in pursuing potential violators ofthis law i greatly appreciated Disclaime Schweser study tools should be used in conjunction with the original readings as et forth by CFA Institute in theie 2011 CFA Level I Seudy Guide. The information contained in Schweser study Cools covers topics contained in the readings referenced by CFA Institute and is believed co be accurate However, heir accuracy cannot be guaranteed nor i any warranty conveyed as to your ultimate exam success. The authors ofthe referenced readings have not endorsed or sponsored Schweser study tool. ‘©2010 Kaplan, Inc.USE YOUR SCHWESER ONLINE ACCESS ACCOUNT All purchasers of this book are sent login informacion for Online Access in an e-mail This is your login co use Performance Tracker and access other Schweser online resources. Simply log in at www.schweser.com and select “Online Access’ co use any of these features. If you need password help, go to www.schweser.com/password or use the “Password Help” link that appears if your login is unsuccessful ‘VOLUME 2 ONLINE FEATURES AT A GLANCE Links 1 Curriculum Within the online answer explanations, we have included page references to the relevant text in both the SchweserNotes and the CFA Institute program texts as well as the primary Learning Outcome Statement supporting the question. Exam Diagnostics ‘When you enter your answers in our Performance Tracker utility, you can request a breakdown of your overall score on any one-half (120 question) exam. See how you performed by topic area, study session, or reading. You can also get the Learning Outcome Statement references for just those questions you answered incorrectly to help you focus your review efforts Performance Comparison ‘When you enter your answers on the page for Performance Tracker, you can find out how your score on each half-exam compares to the scores of others who entered their answers. Log in today and enjoy the benefits of Performance Tracker and the other online resources in your account. ‘©2010 Kaplan, lnc. Page 3