CAIA Level 1 Practice Questions With Complete Solutions

CAIA Level 1 Practice Questions With Complete Solutions Which of the following investments is most likely to be considered an institutional quality alternative investment? A. Vintage Wine Collection B. Long/Short Equity Hedge Fund C. High-Yield Corporate Bond Fund D. Small Cap Equity Index Fund ️️B. Institutional-quality alternative investments exhibit risk and return characteristics that are acceptable to institutional investors. Institutional investors have risk and return objectives that prevent them from investing in very small or highly speculative assets, but as a group, are generally able to invest in the four categories of alternative investments. A long/short equiyt hedge fund fits within the requirements of institutional-quality alternative assets. Institutionas may also invest in high-yield bonds or small cap stocks, but these would be considered traditional rather than alternative