Question 1

The typical profitability pattern of private equity investments is called the

Accepted Answer

A)  J curve 
B)  S curve 
C)  U curve 
D)  V curve 
A)  J curve 
B)  S curve 
C)  U curve 
D)  V curve A

Question 2

"Drawdown" is primarily a measure of a fund's

Accepted Answer

A)  volatility 
B)  profitability 
C)  turnover 
D)  management fee 
A)  volatility 
B)  profitability 
C)  turnover 
D)  management fee A

Question 3

A primary objective of most hedge funds is

Accepted Answer

A)  maximum capital appreciation 
B)  income generation 
C)  stable returns 
D)  high correlation with the broad equity market. 
A)  maximum capital appreciation 
B)  income generation 
C)  stable returns 
D)  high correlation with the broad equity market. C

Question 4

All of the following are common hedge fund strategies except

Accepted Answer

A)  directional 
B)  arbitrage/relative value 
C)  long/short 
D)  constant proportion 
A)  directional 
B)  arbitrage/relative value 
C)  long/short 
D)  constant proportion

Question 5

In the context of infrastructure investing, "PPP" stands for

Accepted Answer

A)  per-person project 
B)  public/private partnership 
C)  progressive project program 
D)  programmed premium project 
A)  per-person project 
B)  public/private partnership 
C)  progressive project program 
D)  programmed premium project

Question 6

A primary disadvantage of a hedge fund-of-funds is

Accepted Answer

A)  added risk 
B)  higher expenses 
C)  a tax disincentive 
D)  high correlation 
A)  added risk 
B)  higher expenses 
C)  a tax disincentive 
D)  high correlation

Question 7

A strategy described as 130/30 involves

Accepted Answer

A)  equity and bonds 
B)  long and short positions 
C)  futures and options 
D)  short and long-term investments 
A)  equity and bonds 
B)  long and short positions 
C)  futures and options 
D)  short and long-term investments

Question 8

Which of the following is a characteristic of most infrastructure projects?

Accepted Answer

A)  long life 
B)  unstable cash flows 
C)  little leverage 
D)  liquid 
A)  long life 
B)  unstable cash flows 
C)  little leverage 
D)  liquid

Question 9

A new infrastructure project is a _____ project.

Accepted Answer

A)  blue field 
B)  red field 
C)  gold field 
D)  greenfield 
A)  blue field 
B)  red field 
C)  gold field 
D)  greenfield

Question 10

Venture capital is a type of

Accepted Answer

A)  hedge fund 
B)  municipal bond 
C)  private equity 
D)  infrastructure project 
A)  hedge fund 
B)  municipal bond 
C)  private equity 
D)  infrastructure project

Question 11

Institutional investors seeking exposure to commodities normally use

Accepted Answer

A)  futures contracts 
B)  individual equity positions 
C)  physical assets 
D)  investment contracts 
A)  futures contracts 
B)  individual equity positions 
C)  physical assets 
D)  investment contracts

Question 12

Mezzanine financing is analogous to a

Accepted Answer

A)  second mortgage 
B)  margin loan 
C)  unsecured signature loan 
D)  zero coupon bond 
A)  second mortgage 
B)  margin loan 
C)  unsecured signature loan 
D)  zero coupon bond

The typical profitability pattern of private equity investments is called the

"Drawdown" is primarily a measure of a fund's

A primary objective of most hedge funds is

All of the following are common hedge fund strategies except

In the context of infrastructure investing, "PPP" stands for

A primary disadvantage of a hedge fund-of-funds is

A strategy described as 130/30 involves

Which of the following is a characteristic of most infrastructure projects?

A new infrastructure project is a _____ project.

Venture capital is a type of

Institutional investors seeking exposure to commodities normally use

Mezzanine financing is analogous to a

The Process of Portfolio Management

Valuation, Risk, Return, and Uncertainty

Setting Portfolio Objectives

Investment Policy

The Mathematics of Diversification

Why Diversification Is a Good Idea

International Investment and Diversification

The Capital Markets and Market Efficiency

Picking the Equity Players

Equity Valuation Tools

Security Screening

Bond Pricing and Selection

The Role of Real Assets

Revision of the Equity Portfolio

Revision of the Fixed-Income Portfolio

Principles of Options and Option Pricing

Option Overwriting

Performance Evaluation

Fiduciary Duties and Responsibilities

Principles of the Futures Market

Benching the Equity Players

Removing Interest Rate Risk

Integrating Derivative Assets and Portfolio Management

Contemporary Issues in Portfolio Management

Filters

Exam 14: Alternative Assets

The typical profitability pattern of private equity investments is called the

"Drawdown" is primarily a measure of a fund's

A primary objective of most hedge funds is

All of the following are common hedge fund strategies except

In the context of infrastructure investing, "PPP" stands for

A primary disadvantage of a hedge fund-of-funds is

A strategy described as 130/30 involves

Which of the following is a characteristic of most infrastructure projects?

A new infrastructure project is a _____ project.

Venture capital is a type of

Institutional investors seeking exposure to commodities normally use

Mezzanine financing is analogous to a

The Process of Portfolio Management

Valuation, Risk, Return, and Uncertainty

Setting Portfolio Objectives

Investment Policy

The Mathematics of Diversification

Why Diversification Is a Good Idea

International Investment and Diversification

The Capital Markets and Market Efficiency

Picking the Equity Players

Equity Valuation Tools

Security Screening

Bond Pricing and Selection

The Role of Real Assets

Revision of the Equity Portfolio

Revision of the Fixed-Income Portfolio

Principles of Options and Option Pricing

Option Overwriting

Performance Evaluation

Fiduciary Duties and Responsibilities

Principles of the Futures Market

Benching the Equity Players

Removing Interest Rate Risk

Integrating Derivative Assets and Portfolio Management

Contemporary Issues in Portfolio Management

Filters