CAIA EXAMS COMPILATION BUBNDLE 2023/24|DOWNLOAD TO PASS

5th percentile vs 25th percentile performance 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 choosing managers based on h...

Compounding - is the recognition of interest on interest or, more generally, earnings on earnings Simple Interest - is an interest rate computation approach that does not incorporate compounding Continuous Compounding - assumes that earnings can be instantaneously reinvested to gene...

What are the categories of Real assets ? Land, Infrastructure, and IntangibleReal Assets Real Estate Fixed-Income Investments Real Estate Equity Investments • Binomial option pricing model ? • Binomial option pricing model: can be used to value undeveloped land as a call option. The c...

List the 3 primary elements that differentiate a hedge fund from other investment pools 1) Privately organized in most jurisdictions 2) Usually offers performance-based fees to its managers 3) Usually can apply leverage, use derivatives or utilize other investment felxibility List 6 invest...

What is a split estate and in what region are split estates uncommon? A split estate is when the surface rights and mineral rights are separately owned. Split estates are relatively uncommon in the U.S. where private land owners tend to own both surface and mineral rights. List the three f...

Regression - a statistical analysis of the relationship that explains the values of a dependent variable as a function of the values of one or more independent variables based on a specified model. Independent Variable Are those explanatory variables that are inputs to the regression and ar...

1. Yo _______ (viajar) en el tren de las 3:30. 2. ¿Dónde _______ (vivir) Samuel de niño? 3. Tú _______ (hablar) con Javier. 4. Leonardo y yo _______ (correr) por el parque. 5. Ustedes _______ (ir) a la clínica. 6. Nadia _______ (bailar) merengue. 7. ¿Cuándo _______ (asistir) tú a clase...

Semi standard deviation Volatility of returns falling below the mean. Also called downside standard deviation Semi variance The square of the semi standard deviation Semi standard deviation Mean I hesapla. Mean den kucuk rakamlari alarak ( r-m)nin karesi +... Cikan rakam /n-1 = samp...

Normal Distribution ○ Normal curve is symmetrical ○ 2 halves are identical ○ Doesn't hit zero but gets close ○ Mean = mu ○ Width = standard deviation = sigma ○ Values often thought as distance from the mean in standard deviations § Z value...how many standard deviations away fro...

Define investment Investment is deferred consumption. List four major types of real assets other than land and other types of real estate. Natural resources, commodities, infrastructure and intellectual property List the three major types of alternative investments other than real as...

Alternative investments Alternative investments are sometimes viewed as including any investment that is not simply a long position in traditional investments. Fixed-Income Securities A fixed income security is an investment that provides a return in the form of fixed periodic payments and ...

Inflation is the decline in the value of money relative to the value of a general bundle of goods and services Nominal Price refers to the stated price of an asset measured using the contemporaneous values of a currency. Real Price refers to the price of an asset that is adjusted fo...

Multi-factor models express systematic risk using multiple factors and are extremely popular throughout traditional and alternative investing. The reason is simple: multi-factor models tend to explain systematic returns much better than do single-factor models. general ex ante form of a mu...

What are the two major problems with estimating the beta of a hedge fund using historical return data? Using past data to measure beta causes estimation risk (inaccuracy). Another major problem with estimating beta using historical data is that the true beta being measured may be changing through t...