CAIA Level 1 Questions and Answers 100% Verified.

Define investment - ANSWER-Investment is deferred consumption List the four major types of real assets other than land and other types of real estate. - ANSWER-Natural resources, commodities, infrastructure, and intellectual property. List the three major types of alternative investments other than real assets in the CAIA curriculum. - ANSWER-Hedge funds, Private Equity, and Structured Products Name the five structures that differentiate traditional and alternative investments - ANSWER-Regulatory Structures, Securities Structures, Trading Structures, Compensation Structures, and Institutional Structures. Which of the five structures that differentiate traditional and alternative investments relates to the taxation of an instrument? - ANSWER-Regulatory Structures Name the four return characteristics that differentiate traditional and alternative investments. - ANSWER-Diversification, Illiquidity, Inefficiency, and Nonnormality. Name four major methods of analysis that distinguish the analysis of alternative investments from the analysis of traditional investments. - ANSWER-Return Computation Methods, Statistical Methods, Valuation Methods, Portfolio Management Methods.