CSC Exam 2 Comprehensive
Questions (Frequently Tested) and
Complete Solutions Graded A+
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What tremendous flexibility in the types of investment strategies
he or she can employ, their ability to select superior investments
within the targeted strategy and relevant markets is more
important for which funds than for almost any other managed
product. - Answer: Hedge Fund
,What are the three common prospectus exceptions for Hudge
funds? - Answer: • Minimum investment exemption
• Accredited investor exemption
• Offering memorandum exemption.
What e minimum investment exemption allows the sale of
securities without a prospectus to non-individual investors who
make a prescribed minimum investment? - Answer: National
Instrument 45-106 (NI 45-106) sets this minimum at $150,000
across all jurisdictions in Canada
What is the criteria for qualification as accredited investors by
institutional client? - Answer: net assets of at least $5 million
What is the criteria for qualification as accredited investors by
Individual client? - Answer: - individual who, either alone or with
a spouse, beneficially owns financial assets with an aggregate
realizable value that exceeds $1 million
- An individual whose net income before taxes exceeded $200,000
in the past two years ( $300,000 if their is a spouse)
- individual who, alone or with a spouse, has net assets worth at
least $5 million
, What ensures that a fund manager is paid an incentive fee only on
net new profits. Basically, a high-water mark sets a bar above
which the manager earns incentive fees. This feature prevents the
manager from double-dipping on incentive fees following periods
of poor performance? - Answer: High-water mark
What is the rate a hedge fund must earn before its manager is
paid an incentive fee? - Answer: Hurdle rate
A fund has a hurdle rate of 5%, and the fund earns 20% for the
year. What will the incentive fees will be based on? - Answer:
15%
What follow a prescribed form and provide for the rights of
rescission or a right of action, if these are not available by
regulation. Included in the expected prescribed disclosure is
information regarding the issuer and audited financial statements.
- Answer: offering memorandum
What risk stems from the fact that alternative strategy funds can
be small, newly created businesses that depend on one or more
high-profile managers for their success? - Answer: Operational
Risk
Questions (Frequently Tested) and
Complete Solutions Graded A+
Professional Academic Assistance Services
Services Offered
• Proctored Exam Assistance
• Online Class Management (Full Course Support)
• Exam Preparation & Study Materials
• Assignments and Coursework Support
• Essay and Research Paper Writing
• Discussion Posts & Responses
• Editing and Proofreading
• Confidential Academic Consultation
Contact Information
Email:
WhatsApp link: https://wa.me/254704846336
Fast Response | Confidential | Reliable Academic Support
Helping Students Achieve Academic Excellence
What tremendous flexibility in the types of investment strategies
he or she can employ, their ability to select superior investments
within the targeted strategy and relevant markets is more
important for which funds than for almost any other managed
product. - Answer: Hedge Fund
,What are the three common prospectus exceptions for Hudge
funds? - Answer: • Minimum investment exemption
• Accredited investor exemption
• Offering memorandum exemption.
What e minimum investment exemption allows the sale of
securities without a prospectus to non-individual investors who
make a prescribed minimum investment? - Answer: National
Instrument 45-106 (NI 45-106) sets this minimum at $150,000
across all jurisdictions in Canada
What is the criteria for qualification as accredited investors by
institutional client? - Answer: net assets of at least $5 million
What is the criteria for qualification as accredited investors by
Individual client? - Answer: - individual who, either alone or with
a spouse, beneficially owns financial assets with an aggregate
realizable value that exceeds $1 million
- An individual whose net income before taxes exceeded $200,000
in the past two years ( $300,000 if their is a spouse)
- individual who, alone or with a spouse, has net assets worth at
least $5 million
, What ensures that a fund manager is paid an incentive fee only on
net new profits. Basically, a high-water mark sets a bar above
which the manager earns incentive fees. This feature prevents the
manager from double-dipping on incentive fees following periods
of poor performance? - Answer: High-water mark
What is the rate a hedge fund must earn before its manager is
paid an incentive fee? - Answer: Hurdle rate
A fund has a hurdle rate of 5%, and the fund earns 20% for the
year. What will the incentive fees will be based on? - Answer:
15%
What follow a prescribed form and provide for the rights of
rescission or a right of action, if these are not available by
regulation. Included in the expected prescribed disclosure is
information regarding the issuer and audited financial statements.
- Answer: offering memorandum
What risk stems from the fact that alternative strategy funds can
be small, newly created businesses that depend on one or more
high-profile managers for their success? - Answer: Operational
Risk
