Exam Details

  • Exam Code
    :CVA
  • Exam Name
    :Certified Valuation Analyst (CVA)
  • Certification
    :NACVA Certifications
  • Vendor
    :NACVA
  • Total Questions
    :251 Q&As
  • Last Updated
    :Jul 02, 2025

NACVA NACVA Certifications CVA Questions & Answers

  • Question 71:

    The direction and magnitude of the company-specific risk premium may be based on an analysis of some factors. Which of the following is/are out of such factors?

    A. Leverage

    B. Size

    C. Level of current competition

    D. Industry risk

  • Question 72:

    The Build-Up model divides the risk premium into its subcomponents and estimates the cost of capital as the sum of the following:

    1.A risk-free

    2.A

    risk premium, including one or all of following subcomponents EXCEPT:

    A.

    An equity risk premium

    B.

    A size premium

    C.

    A company-specific risk premium

    D.

    Investment-specific risk

  • Question 73:

    A series of small stock premium studies have been developed by Roger Grabowski and David King. They use eight different measures of size for two major groups (Equity size and Company size). Which of the following is/are measure/s of company size?

    A. Market value of common equity

    B. Book value of common equity

    C. Market value of invested capital

    D. Number of employees

  • Question 74:

    The assumptions underlying the capital asset pricing model are as follows:

    A. Investors are risk averse

    B. Rational investors seek to hold efficient portfolios-that is, portfolios that are fully diversified

    C. All investors have identical investment time horizons (i.e., expected holding periods)

    D. The rate received from lending money is more than the cost of borrowing money

  • Question 75:

    Which of the following assumption is a base for the process of unlevering and relevering betas to an assumed capital structure?

    A. Business interest subject to valuation has the ability to change the capital structure of the subject company

    B. Investors are risk averse

    C. Subject companies are at market value in this process

    D. The amount of debt and equity at market value.

  • Question 76:

    It is possible (although not very common) for a security to have a negative beta (i.e. a beta less than zero). Such a beta would indicate that:

    A. It is the result of aggressive securities

    B. Betas for small and publicly traded companies are often unreliable

    C. The returns of these securities are countercyclical to the returns of the board investment market index.

    D. Risk-free return would be greater

  • Question 77:

    Beta is a factor used to measure:

    A. Systematic risk

    B. Unsystematic risk

    C. Impact of size effect on risk

    D. Equity risk premium

  • Question 78:

    The fundamental of CAPM is:

    A. That the risk premium portion of the expected return on a security is a function of that security's systematic risk.

    B. That the risk premium portion of the expected return on a security is a function of that security's unsystematic risk.

    C. That the risk discount portion of the expected return on a security is a function of that security's systematic risk.

    D. That the risk discount portion of the expected return on a security is a function of that security's unsystematic risk.

  • Question 79:

    _____________________ is the uncertainty of future returns resulting from the sensitivity of the return on the subject investment to movements in the return on the investment market as a whole.

    A. Unsystematic risk

    B. Systematic risk

    C. Equity-risk premium

    D. Investment-specific risk

  • Question 80:

    The capital asset pricing model is part of a larger body of economic theory known as capital market theory. Capital market theory also includes:

    A. Security analysis

    B. Portfolio management theory

    C. A normative theory

    D. Systematic theory

Tips on How to Prepare for the Exams

Nowadays, the certification exams become more and more important and required by more and more enterprises when applying for a job. But how to prepare for the exam effectively? How to prepare for the exam in a short time with less efforts? How to get a ideal result and how to find the most reliable resources? Here on Vcedump.com, you will find all the answers. Vcedump.com provide not only NACVA exam questions, answers and explanations but also complete assistance on your exam preparation and certification application. If you are confused on your CVA exam preparations and NACVA certification application, do not hesitate to visit our Vcedump.com to find your solutions here.