CFA Level I Exam 1

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Question 1 of 30

1 An analyst at Ndovura Ridge Capital Ltd in Nairobi argues that a proposed trading practice must be ethical because Kenyan securities law permits it. Which response best describes how legal and ethical standards relate?

Legal compliance makes the practice ethical Ethical standards apply only where the law is silent Conduct can be legal and still be unethical

✅ Correct answer: Conduct can be legal and still be unethical

📌 Explanation: Laws set a minimum standard of conduct and often lag behind market practice, so an action can be legal yet still fail an ethical test. Ethical decision-making asks whether conduct is fair to clients and markets, not merely whether a rule permits it.

❌ Why the other options are wrong: Treating legal compliance as proof that the practice is ethical confuses the legal floor with ethical conduct; saying ethical standards apply only where the law is silent reverses the relationship, because ethics often demands more than the law even where a rule exists.

📋 Objective: 1.1 (Ethics and trust in the investment profession)

2 Which outcome would most likely follow if the CFA Institute Professional Conduct Program finds that a charterholder at Ndovura Fynbos Securities Ltd in Johannesburg breached the Standards and the member accepts the sanction the Designated Officer proposes?

The matter is closed with the agreed sanction A Disciplinary Review Committee panel must hear the case It is referred to the securities regulator

✅ Correct answer: The matter is closed with the agreed sanction

📌 Explanation: Under the Professional Conduct Program, the Designated Officer investigates and may propose a disciplinary sanction. If the member accepts the proposal, the matter is concluded and the sanction is imposed; a hearing is needed only when the member rejects it.

❌ Why the other options are wrong: A hearing before a Disciplinary Review Committee panel is triggered only when the member rejects the proposed sanction; referral to a securities regulator is not the program's outcome, because the program enforces the Code and Standards through CFA Institute's own disciplinary process.

📋 Objective: 1.2 (The CFA Institute Code of Ethics and Standards of Professional Conduct)

3 Zainab Bello, CFA, is preparing a sector report at Ndovura Marina Securities Ltd in Lagos and wants to include a ten-year demand forecast taken from an independent consultant's published study. Which action is most appropriate for her under the Code and Standards?

Use it uncredited, since it is public Adjust the figures slightly and present them as hers Cite the consultant's study as the forecast's source

✅ Correct answer: Cite the consultant's study as the forecast's source

📌 Explanation: Standard I(C) Misrepresentation covers plagiarism: a member must acknowledge the source when using another person's analysis or forecasts. Citing the consultant's study lets Zainab use the forecast while giving readers an accurate picture of whose work it is.

❌ Why the other options are wrong: Using the forecast uncredited because the study is public still presents another's work as her own, since publication does not remove the duty to attribute; adjusting the figures slightly and presenting them as hers is plagiarism disguised by minor changes.

📋 Objective: 1.3 (Standard I: Professionalism)

4 A portfolio manager at Ndovura Fynbos Securities Ltd plans to trade a thinly traded Johannesburg-listed share back and forth between two client accounts to inflate its reported volume before a share placement. Which assessment of the plan is most appropriate?

It breaches the Standard on market manipulation It is acceptable if no commission is charged It breaches the duty of fair dealing to clients

✅ Correct answer: It breaches the Standard on market manipulation

📌 Explanation: Standard II(B) Market Manipulation prohibits transactions that distort prices or artificially inflate trading volume with the intent to mislead market participants. Crossing the share between client accounts to create the appearance of activity before the placement is transaction-based manipulation.

❌ Why the other options are wrong: Charging no commission does not cure the misleading volume, because the harm is to market integrity rather than to client costs; calling it a fair-dealing breach misses the main issue, since the trades deceive the market rather than favour one client over another.

📋 Objective: 1.4 (Standard II: Integrity of capital markets)

5 Which nominal required return should an analyst at Baobab Giza Generics SAE in Cairo use for an EGP investment if the real risk-free rate is 2%, expected inflation is 5% and the risk premium is 6%, with the three components compounded?

8.12% 13.00% 13.53%

✅ Correct answer: 13.53%

📌 Explanation: Compounding the three components gives (1.02)(1.05)(1.06) − 1 = 0.13526, or 13.53%. Each component compensates the investor for a separate element: the real time value of money, expected inflation and the risk of the investment.

❌ Why the other options are wrong: 13.00% simply adds 2% + 5% + 6%, an approximation that ignores the cross-products of the components; 8.12% compounds only the real rate and the risk premium and so leaves out the compensation for expected inflation.

📋 Objective: 2.1 (Returns of financial assets and instruments)

6 A client of Ndovura Osu Asset Managers Ltd in Accra wants to know the compound annual return of a GHS fund that earned 25%, −20% and 15% in three successive years. The figure the adviser should report is closest to:

4.77% 5.00% 6.67%

✅ Correct answer: 4.77%

📌 Explanation: The compound annual (geometric mean) return is [(1.25)(0.80)(1.15)]^(1/3) − 1 = 1.15^(1/3) − 1 = 4.77%. The geometric mean is the right measure of multi-period growth because it reflects the compounding of the actual sequence of returns.

❌ Why the other options are wrong: 5.00% divides the 15% cumulative return by three and so ignores compounding; 6.67% is the arithmetic mean of the three annual returns, which overstates compound growth when returns vary from year to year.

📋 Objective: 2.2 (Types of financial returns)

7 When judging a manager at Ndovura Ridge Capital Ltd, a pension trustee notes that the KES portfolio grew from KES 20 million to KES 23 million in year 1, received a KES 7 million client contribution, then ended year 2 at KES 27.6 million. The annualised return the trustee needs to use is closest to:

1.27% 2.86% 5.80%

✅ Correct answer: 2.86%

📌 Explanation: The manager does not control the timing of the client's contribution, so the time-weighted return is appropriate. Year 1 return = 23/20 − 1 = 15%; year 2 return = 27.6/30 − 1 = −8%. Annualised TWR = (1.15 × 0.92)^(1/2) − 1 = 2.86%.

❌ Why the other options are wrong: 1.27% is the money-weighted return (the IRR of the cash flows), which is distorted by the contribution arriving just before the weak year; 5.80% is the two-year cumulative time-weighted return, which has not been annualised.

📋 Objective: 2.3 (Benchmarking returns)

8 Which implied constant dividend growth rate should an analyst infer for Baobab Highveld Foods Ltd, whose shares trade at ZAR 80.00 just after paying a ZAR 3.80 dividend, if investors require a 12% return?

4.75% 6.92% 7.25%

✅ Correct answer: 6.92%

📌 Explanation: With P0 = D0(1 + g)/(r − g), solving for g gives g = (r × P0 − D0)/(P0 + D0) = (0.12 × 80 − 3.80)/(80 + 3.80) = 5.80/83.80 = 6.92%. Check: D1 = 3.80 × 1.0692 = 4.063, and 4.063/(0.12 − 0.0692) = ZAR 80.00.

❌ Why the other options are wrong: 7.25% treats the dividend just paid as next year's dividend (12% − 3.80/80) and so skips the growth adjustment; 4.75% is the trailing dividend yield, not the growth rate implied by the share price.

📋 Objective: 2.4 (The time value of money in finance)

9 An economist at Baobab Giza Generics SAE is evaluating the Egyptian market for generic antibiotics, in which four producers hold market shares of 40%, 30%, 20% and 10%. The Herfindahl–Hirschman index she should report is closest to:

0.25 0.29 0.30

✅ Correct answer: 0.30

📌 Explanation: The Herfindahl–Hirschman index sums the squared market shares of every firm in the market: 0.40² + 0.30² + 0.20² + 0.10² = 0.16 + 0.09 + 0.04 + 0.01 = 0.30. A value this high points to a concentrated market in which producers may hold pricing power.

❌ Why the other options are wrong: 0.29 sums the squares of only the three largest producers and leaves out the 10% firm; 0.25 is the index for four equal-sized firms (1/4), which ignores the unequal market shares actually observed.

📋 Objective: 3.1 (The firm and market structures)

10 Which observation would most likely tell an analyst at Baobab Ikoyi Telecom plc in Lagos that Nigeria's economy has moved from contraction into early expansion?

Core inflation climbs above the official target Firms start to rebuild their depleted inventories Firms cut overtime hours and temporary staff

✅ Correct answer: Firms start to rebuild their depleted inventories

📌 Explanation: In the recovery or early expansion phase, inventory-to-sales ratios are low after the downturn, so firms start rebuilding inventories, which adds to output. Hiring and inflation tend to lag and pick up only later in the expansion.

❌ Why the other options are wrong: Core inflation climbing above target is typical of a late expansion, when spare capacity has been used up; firms cutting overtime and temporary staff is an early sign of contraction, because employers trim hours before laying off permanent workers.

📋 Objective: 3.2 (Understanding business cycles)

11 An analyst reviewing Baobab Sokoto Grains plc's annual report needs to assess management's own view of the trends, risks and uncertainties likely to affect future results. The section she should read is most appropriately:

The independent auditor's report The accounting policies note The management commentary section

✅ Correct answer: The management commentary section

📌 Explanation: Management commentary (MD&A in US filings) is where management discusses results, liquidity, known trends, risks and uncertainties that may affect future performance. It is the main source of management's own forward-looking view, although it is not audited and IFRS encourages rather than requires it.

❌ Why the other options are wrong: The independent auditor's report gives an opinion on whether the statements are fairly presented, not management's outlook; the accounting policies note explains measurement choices but does not discuss the future trends or risks facing the business.

📋 Objective: 4.1 (Introduction to financial statement analysis)

12 Which diluted EPS should Baobab Sokoto Grains plc report for a year with net income of NGN 2,400 million, 500 million weighted average ordinary shares and NGN 200 million of dividends on preference shares convertible into 50 million ordinary shares?

NGN 4.00 NGN 4.36 NGN 4.40

✅ Correct answer: NGN 4.36

📌 Explanation: Basic EPS = (2,400 − 200)/500 = NGN 4.40. Under the if-converted method the preference dividend is added back to earnings and 50 million shares are added: 2,400/550 = NGN 4.36. Because 4.36 is below 4.40, the conversion is dilutive and NGN 4.36 is reported.

❌ Why the other options are wrong: NGN 4.40 is basic EPS, which ignores the potential conversion; NGN 4.00 adds the new shares to the denominator but still deducts the preference dividend, which would not be paid if the shares converted.

📋 Objective: 4.2 (Analysing income statements)

13 Baobab Drakensberg Logistics Ltd pays ZAR 900 million for all the shares of a rival whose identifiable net assets have a book value of ZAR 600 million and a fair value of ZAR 700 million, excluding an internally built customer brand, which is separately identifiable and worth ZAR 80 million. The goodwill it should recognise is closest to:

ZAR 120 million ZAR 200 million ZAR 300 million

✅ Correct answer: ZAR 120 million

📌 Explanation: In a business combination the acquirer recognises the target's identifiable assets at fair value, including intangibles such as a brand the target built internally and could not capitalise itself. Goodwill = 900 − (700 + 80) = ZAR 120 million.

❌ Why the other options are wrong: ZAR 200 million leaves the brand inside goodwill even though it is separately identifiable and must be recognised on its own; ZAR 300 million measures the acquired net assets at book value instead of fair value.

📋 Objective: 4.3 (Analysing balance sheets)

14 A credit analyst is reviewing Baobab Kumasi Cocoa plc, which reported net income of GHS 50 million, depreciation of GHS 12 million, a GHS 4 million gain on an equipment sale, receivables up GHS 9 million, inventory down GHS 5 million and payables up GHS 2 million. The operating cash flow she should derive is closest to:

GHS 56 million GHS 60 million GHS 64 million

✅ Correct answer: GHS 56 million

📌 Explanation: Indirect method: 50 + 12 depreciation − 4 gain on sale − 9 rise in receivables + 5 fall in inventory + 2 rise in payables = GHS 56 million. The gain is removed because the sale proceeds are reported in investing activities.

❌ Why the other options are wrong: GHS 60 million reverses the working-capital signs, adding the rise in receivables and deducting the fall in inventory and the rise in payables; GHS 64 million adds the gain on sale to net income instead of deducting it.

📋 Objective: 4.4 (Analysing statements of cash flows I)

15 Which form of business should two founders in Mombasa choose for Baobab Coast Logistics if they want limited liability, plan to raise equity from many outside investors and accept that the business will be taxed as a separate entity?

A general partnership A limited company A sole proprietorship

✅ Correct answer: A limited company

📌 Explanation: A limited company is a legal entity separate from its owners, so shareholders' liability is limited to their investment, ownership can be spread across many outside investors, and the company itself is taxed. These features match each of the founders' requirements.

❌ Why the other options are wrong: A general partnership exposes the partners to unlimited personal liability and is hard to scale to many investors; a sole proprietorship has a single owner with unlimited liability, so it meets neither the liability nor the fundraising need.

📋 Objective: 5.1 (Organisational forms, corporate issuer features and ownership)

16 A fixed-income manager holding senior bonds of Baobab Ikoyi Telecom plc is evaluating the board's plan to fund a risky expansion into neighbouring markets. Compared with the company's shareholders, the bondholder is most likely to:

favour it more, sharing in the upside view it the same, as both claims are fixed favour it less, as its gain is capped

✅ Correct answer: favour it less, as its gain is capped

📌 Explanation: Bondholders receive fixed interest and principal, so their gain is capped while they bear more default risk if the risky expansion fails. Shareholders keep the residual gains, so lenders are typically less supportive of risk-increasing investments than shareholders are.

❌ Why the other options are wrong: Expecting the bondholder to favour the plan more wrongly assumes lenders share in the upside, which goes to shareholders; viewing both claims as fixed is a misconception, because equity is a residual claim with variable returns.

📋 Objective: 5.2 (Investors and other stakeholders)

17 Which equity instrument issued by Baobab Corniche Shipping SAE should an investor in Cairo choose if she needs a fixed dividend paid ahead of ordinary dividends plus the option to switch into ordinary shares if the share price rises?

Callable preference shares Convertible preference shares Putable ordinary shares

✅ Correct answer: Convertible preference shares

📌 Explanation: Preference shares carry a fixed dividend that ranks ahead of ordinary dividends, and a convertible feature lets the holder exchange them for a set number of ordinary shares, capturing the upside if the ordinary share price rises.

❌ Why the other options are wrong: Callable preference shares give the issuer, not the investor, the right to redeem, which limits rather than adds upside; putable ordinary shares let the holder sell the shares back to the issuer but carry no fixed, prior-ranking dividend.

📋 Objective: 6.1 (Equity instrument features)

18 An investor is reviewing Baobab Kente Media plc in Accra, whose founders own all its Class B shares, equal to 15% of shares outstanding, with ten votes per share; the public owns the remaining one-vote Class A shares. The founders' share of total voting power should be closest to:

15.0% 60.0% 63.8%

✅ Correct answer: 63.8%

📌 Explanation: Per 100 shares, founders' votes = 15 × 10 = 150 and public votes = 85 × 1 = 85. Founders' voting power = 150/(150 + 85) = 63.8%. Dual-class structures let founders control votes well beyond their 15% economic stake.

❌ Why the other options are wrong: 15.0% is the founders' economic ownership, which ignores the extra votes attached to each Class B share; 60.0% divides their 150 votes by 250, counting the Class B shares a second time instead of using the 235 votes actually outstanding.

📋 Objective: 6.2 (Equity jurisdictions, classes and the voting process)

19 Ndovura Ridge Capital Ltd needs to sell a large block of a thinly traded Nairobi-listed share for several client funds without pushing down its price. Which trading venue is most appropriate for this order?

An off-exchange block trading venue The exchange's public order book A new primary market offering

✅ Correct answer: An off-exchange block trading venue

📌 Explanation: Off-exchange venues such as block-trading platforms and dark pools let large orders be matched without being displayed, which limits the price impact of selling a big position in a thinly traded share. This suits the firm's aim of protecting its clients' execution prices.

❌ Why the other options are wrong: Placing the block in the exchange's public order book reveals the selling pressure and is likely to push the price down; a new primary market offering is how issuers raise new capital, not how investors sell existing shares in the secondary market.

📋 Objective: 6.3 (Equity issuance and trading)

20 A shareholder bought Baobab Highveld Foods Ltd shares at ZAR 64.00 and is evaluating a year in which the price rose to ZAR 68.48 and dividends of ZAR 2.88 per share were received. The total return she should report is closest to:

7.00% 10.75% 11.50%

✅ Correct answer: 11.50%

📌 Explanation: Total return = (P1 − P0 + D)/P0 = (68.48 − 64.00 + 2.88)/64.00 = 7.36/64.00 = 11.50%. It combines the price return of 7.00% with the dividend yield of 4.50% on the purchase price.

❌ Why the other options are wrong: 7.00% is the price return only and leaves out the dividend received; 10.75% divides the same total gain by the ending price of ZAR 68.48 instead of by the purchase price of ZAR 64.00.

📋 Objective: 6.4 (Sources of equity returns)

21 Which provision in the indenture of a new NGN bond issued by Baobab Ikoyi Telecom plc is a negative covenant that a credit analyst should flag as protecting bondholders?

A limit on further secured borrowing A duty to insure its assets A duty to publish audited accounts

✅ Correct answer: A limit on further secured borrowing

📌 Explanation: Negative covenants restrict what the issuer may do. A limit on further secured borrowing stops the issuer from pledging assets to new lenders ahead of existing bondholders, which protects their recovery prospects in a default.

❌ Why the other options are wrong: A duty to insure its assets and a duty to publish audited accounts are affirmative covenants, which require the issuer to take actions rather than prohibiting conduct; they are useful administrative protections but are not negative covenants.

📋 Objective: 7.1 (Fixed-income instrument features)

22 An analyst is evaluating a convertible bond of Baobab Corniche Shipping SAE priced at EGP 1,050 per EGP 1,000 of par value and convertible into 25 ordinary shares, which trade at EGP 36.00. The conversion premium she should report is closest to:

EGP 50 EGP 100 EGP 150

✅ Correct answer: EGP 150

📌 Explanation: Conversion value = 25 × EGP 36.00 = EGP 900. The conversion premium is the bond's price minus its conversion value: 1,050 − 900 = EGP 150. The premium reflects the bond's value as a fixed-income claim plus the option to convert later.

❌ Why the other options are wrong: EGP 50 is the bond's premium over par value, not over its conversion value; EGP 100 compares par value with conversion value and ignores the price investors actually pay for the bond.

📋 Objective: 7.2 (Fixed-income cash flows and types)

23 When the treasurer of Baobab Drakensberg Logistics Ltd needs to raise ZAR 500 million in bonds and wants an investment bank to buy the whole issue and bear the risk of reselling it, the offering method the company should use is:

A best-efforts offering An underwritten offering A private placement

✅ Correct answer: An underwritten offering

📌 Explanation: In an underwritten offering the investment bank buys the entire issue from the issuer and resells it to investors, so the bank bears the risk of not placing the bonds at the expected price. This matches the treasurer's wish to transfer placement risk.

❌ Why the other options are wrong: In a best-efforts offering the bank acts only as a broker and does not commit to buy unsold bonds; a private placement sells the bonds directly to a small group of qualified investors and does not involve a bank taking on the resale risk.

📋 Objective: 7.3 (Fixed-income issuance and trading)

24 A commodity buyer at Baobab Kumasi Cocoa plc wants to hedge a non-standard quantity of cocoa for delivery on a specific date and is willing to accept counterparty credit risk. The derivatives market it should use is most likely:

A regulated futures exchange The physical spot market An over-the-counter derivatives market

✅ Correct answer: An over-the-counter derivatives market

📌 Explanation: Over-the-counter derivatives such as forwards are privately negotiated, so the quantity, delivery date and other terms can be tailored to the hedger's needs. The trade-off is counterparty credit risk, which the buyer has said it is willing to accept.

❌ Why the other options are wrong: A regulated futures exchange offers standardised contract sizes and dates, so it cannot match the non-standard quantity exactly; the physical spot market is for immediate delivery and does not lock in a price for a future date.

📋 Objective: 8.1 (Derivative instrument and market features)

25 Which profit per share should a trader at Ndovura Fynbos Securities Ltd record at expiration on a long put with an exercise price of ZAR 150.00, bought for a premium of ZAR 6.00, if the underlying share closes at ZAR 138.00?

ZAR −6.00 ZAR 6.00 ZAR 12.00

✅ Correct answer: ZAR 6.00

📌 Explanation: The put's value at expiration is max(0, X − S) = max(0, 150 − 138) = ZAR 12.00. Profit deducts the premium paid at purchase: 12.00 − 6.00 = ZAR 6.00 per share for the long put holder.

❌ Why the other options are wrong: ZAR 12.00 is the payoff at expiration, before subtracting the premium paid; ZAR −6.00 treats the put as expiring worthless, which would happen only if the share closed above the exercise price.

📋 Objective: 8.2 (Forward commitment and contingent claim instruments)

26 Ndovura Sinai Growth Partners Ltd, the general partner of a private equity fund in Cairo, wants its limited partners to receive their contributed capital plus the preferred return before it earns any carried interest. Which distribution waterfall should it adopt?

A deal-by-deal (American) waterfall A whole-of-fund (European) waterfall A high-water mark provision

✅ Correct answer: A whole-of-fund (European) waterfall

📌 Explanation: Under a whole-of-fund (European) waterfall, distributions go to limited partners until they have recovered their contributed capital plus the preferred return, and only then does the general partner share in profits through carried interest. It is the more LP-friendly structure.

❌ Why the other options are wrong: A deal-by-deal (American) waterfall pays carried interest on each profitable deal as it is realised, before LPs have recovered capital across the fund; a high-water mark is a hedge fund incentive-fee rule, not a private equity distribution waterfall.

📋 Objective: 9.1 (Alternative investment features, methods and structures)

27 An investor in Accra is evaluating a hedge fund run by Ndovura Osu Asset Managers Ltd that grew from GHS 200 million to GHS 240 million before fees. It charges 1.5% of year-end assets plus 15% of gains net of the management fee. The net return the investor should calculate is closest to:

15.47% 17.00% 18.20%

✅ Correct answer: 15.47%

📌 Explanation: Management fee = 1.5% × 240 = GHS 3.6 million. Incentive fee = 15% × (240 − 200 − 3.6) = GHS 5.46 million. Net value = 240 − 3.6 − 5.46 = GHS 230.94 million, so the net return = 30.94/200 = 15.47%.

❌ Why the other options are wrong: 17.00% deducts only an incentive fee on the gross GHS 40 million gain and leaves out the management fee; 18.20% deducts only the management fee and omits the incentive fee.

📋 Objective: 9.2 (Alternative investment performance and returns)

28 Which standard deviation should the trustees of Baobab Giza Generics SAE's staff pension plan expect for a portfolio with 70% in an equity fund (σ = 18%) and 30% in a bond fund (σ = 8%), given a correlation of 0.2 between them?

12.83% 13.29% 15.00%

✅ Correct answer: 13.29%

📌 Explanation: Portfolio variance = 0.7² × 0.18² + 0.3² × 0.08² + 2 × 0.7 × 0.3 × 0.2 × 0.18 × 0.08 = 0.015876 + 0.000576 + 0.001210 = 0.017662. Standard deviation = √0.017662 = 13.29%.

❌ Why the other options are wrong: 15.00% is the weighted average of the two standard deviations, which holds only if the correlation is +1; 12.83% drops the covariance term, which would be correct only for a correlation of zero.

📋 Objective: 10.1 (Portfolio risk and return: part I)

29 A pension consultant is reviewing Ndovura Eko Investment Managers Ltd's NGN equity portfolio, which returned 16% with a beta of 1.3 in a year when the risk-free rate was 7% and the market returned 13%. The Jensen's alpha she should report is closest to:

1.20% 3.00% 6.92%

✅ Correct answer: 1.20%

📌 Explanation: CAPM required return = 7% + 1.3 × (13% − 7%) = 14.8%. Jensen's alpha = actual return − CAPM return = 16% − 14.8% = 1.20%, the return earned above that justified by the portfolio's systematic risk.

❌ Why the other options are wrong: 3.00% compares the portfolio with the market return and ignores its beta of 1.3; 6.92% is the Treynor ratio, (16% − 7%)/1.3, a risk-adjusted return per unit of beta rather than an alpha.

📋 Objective: 10.2 (Portfolio risk and return: part II)

30 Which statement should a trustee of the new defined contribution plan at Baobab Rift Tea Estates Ltd in Kericho give employees about who bears the plan's investment risk?

The employees bear the investment risk The employer bears the investment risk The fund manager bears investment risk

✅ Correct answer: The employees bear the investment risk

📌 Explanation: In a defined contribution plan the employer's obligation is limited to making the agreed contributions, and each employee's benefit depends on how those contributions are invested. Employees therefore bear the investment risk, unlike members of a defined benefit plan.

❌ Why the other options are wrong: The employer bearing the investment risk describes a defined benefit plan, where the sponsor promises a set pension; the fund manager is an agent paid to invest the assets and does not guarantee the plan's returns.

CFA Level I Exam 1

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