Caia stuvia Study guides, Class notes & Summaries

CAIA Level 1 Questions and Answers 100% VerifiedCAIA Level 1 Questions and Answers 100% VerifiedCAIA Level 1 Questions and Answers 100% VerifiedCAIA 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 ...

CAIA Level 1 Questions and Answers 100% CorrectCAIA Level 1 Questions and Answers 100% CorrectCAIA Level 1 Questions and Answers 100% CorrectCAIA Level 1 Questions and Answers 100% Correct liquid alternatives - ANSWER-Liquid alternatives typically have (1) constraints on permissible investments strategies (for example, liquidity and leverage limits), (2) no incentive fees, (3) less skilled managers as a result of less attractive compensation and limited strategies, and (4) an inability to ear...

CAIA Level 2 Questions and Answers 100% AccurateCAIA Level 2 Questions and Answers 100% AccurateCAIA Level 2 Questions and Answers 100% AccurateCAIA Level 2 Questions and Answers 100% AccurateMeta risks are qualitative risks not captured by specific and measurable financial risks. events. - ANSWER-They include organizational and human behavior, moral hazard, the misuse and excessive dependence on quantitative methods, market interaction, and extreme capital market A distressed securities stra...

CAIA Level II Exam Questions and Answers 100% AccurateCAIA Level II Exam Questions and Answers 100% AccurateCAIA Level II Exam Questions and Answers 100% AccurateCAIA Level II Exam Questions and Answers 100% Accurate 5th percentile vs 25th percentile performance - ANSWER-5th percentile managers outperform in every comparison BUT 25th percentile managers' performance is more volatile --> even if 25th percentile managers outperform they tend to mean revert --> demonstrates the perils of ...

CAIA Practice Questions and Answers 100% CorrectCAIA Practice Questions and Answers 100% CorrectCAIA Practice Questions and Answers 100% CorrectCAIA Practice Questions and Answers 100% Correct What assets are often chracterized as traditional by some and alternatives by others in: hedge funds, private equity, and real assets - ANSWER-Hedge Funds: Liquid alternative mutual funds Private Equity: Closed-end funds with illiquid holdings Real Assets: Public real estate and public equities of c...

CAIA Level 1| 310 Questions and Answers (Graded A)CAIA Level 1| 310 Questions and Answers (Graded A)CAIA Level 1| 310 Questions and Answers (Graded A) Standard I(A) - Knowledge of Law - ANSWER-Understand and comply with all applicable laws, rules and regulations (including the CFA institutes code) of any government, regulatory organization, licensing agency, or professional association governing their professional activities. In the event of a conflict, comply with the more strict law, rule or ...

CAIA Exam Questions and Answers 100% Correct CAIA Exam Questions and Answers 100% Correct CAIA Exam Questions and Answers 100% Correct CAIA Exam Questions and Answers 100% Correct An asset-pricing model that attempts to explain how investors should behave is a(n): - ANSWER-normative model. Normative models attempt to explain how investors should behave. Positive models attempt to explain how investors do behave. Theoretical models use assumptions and logic, while empirical models ...

CAIA Level II Questions and Answers 100% CorrectCAIA Level II Questions and Answers 100% CorrectCAIA Level II Questions and Answers 100% Correct Upstream Commodity Producer - ANSWER-typically farmers of firms extracting commodities. Downstream commodity producer - ANSWER-processed a commodity(s) into a marketable product Excess Return Index - ANSWER-tracks the performance of a portfolio of commodity futures in excess of the risk-free rate. Total Return index - ANSWER-tracks the perform...

CAIA Level II Exam Questions and Answers 100% VerifiedCAIA Level II Exam Questions and Answers 100% VerifiedCAIA Level II Exam Questions and Answers 100% VerifiedCAIA Level II Exam Questions and Answers 100% Verified What advantage do multi-factor models have over single-factor models, such as the Capital Asset Pricing Model? - ANSWER-Multi-factor models tend to explain systematic returns much better than do single-factor models. By doing so, multi-factor models are generally believed to produc...

CAIA Level 1 Questions and Answers 100% CorrectCAIA Level 1 Questions and Answers 100% CorrectCAIA Level 1 Questions and Answers 100% CorrectCAIA Level 1 Questions and Answers 100% Correct Value of IP Investment - ANSWER-probability of generating large positive cash flows* cash flow expected in year 1 / investors required rate of return -g Operational Risk - ANSWER-In breaking down the impact of operational risks on hedge fund failures, fraud (i.e., lying about investments and/or performance...