Caia chapter Study guides, Class notes & Summaries

CAIA Chapter 8 Exam Questions and Answers (Graded A)CAIA Chapter 8 Exam Questions and Answers (Graded A)CAIA Chapter 8 Exam Questions and Answers (Graded A)CAIA Chapter 8 Exam Questions and Answers (Graded A)In CAPM model how is beta specified? - ANSWER-Beta is specified as the covariance of the asset's return with the return of the market portfolio, divided by the variance of the returns of the market portfolio What is the general interpretation outside the CAPM? - ANSWER-Beta refers to the...

In CAPM model how is beta specified? - ANSWER-Beta is specified as the covariance of the asset's return with the return of the market portfolio, divided by the variance of the returns of the market portfolio What is the general interpretation outside the CAPM? - ANSWER-Beta refers to the a measure of risk, or the bearing the risk, wherein the underlying risk is systematic (shared by at least some other investments and usually unable to be diversified or fully hedged without cost) and is pote...

CAIA Chapter 8 Exam Questions and Answers (Rated A+) In CAPM model how is beta specified? - ANSWER-Beta is specified as the covariance of the asset's return with the return of the market portfolio, divided by the variance of the returns of the market portfolio What is the general interpretation outside the CAPM? - ANSWER-Beta refers to the a measure of risk, or the bearing the risk, wherein the underlying risk is systematic (shared by at least some other investments and usually unable t...

CAIA chapter 8

CAIA chapter 19

In CAPM model how is beta specified? - ANSWER-Beta is specified as the covariance of the asset's return with the return of the market portfolio, divided by the variance of the returns of the market portfolio What is the general interpretation outside the CAPM? - ANSWER-Beta refers to the a measure of risk, or the bearing the risk, wherein the underlying risk is systematic (shared by at least some other investments and usually unable to be diversified or fully hedged without cost) and is pote...

CAIA chapter 14

Why are commodities often viewed as an asset class that helps diversify portfolio of traditional assets? Commodities has lack of return correlation with traditional assets Define nominal price Nominal price refers to the stated price of an asset measured using the contemporaneous values of a currency Define inflation Inflation is the decline in the value of money relative to the value of general budle of goods and services Define real price Real price refers to the price of an asset tha...

CAIA chapter 14: Exam Review Questions and answers, rated A+ What are the 5 common attributes of real estate that can encourage its inclussion in an investment portfolio? 1) Potential to offer absolute returns 2) Potential to hedge against unexpected inflation 3) Potential to provide diversification with stocks and bonds 4) Potential to provide cash inflows 5) Potential to provide income tax advantages What are the 3 disadvantages of real estate? 1) Heterogeneity 2) Lumpiness 3) Il...

CAIA Level 1 - Chapter 1: What is an Alternative Investment?