Exam (elaborations)
CAIA Exam 1 Chapter 1 Exam – Questions & Answers
- Institution
- CAIA Exam 1 Chapter 1 Exam – Questions & Answers
CAIA Exam 1 Chapter 1 Exam – Questions & Answers
[Show more]
Content preview
CAIA Exam 1 Chapter 1 Exam –Questions & Answers
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 the eventual
return of principal at maturity.
-Private equity - -Private equity is capital that is not listed on a public
exchange. Private equity is composed of funds and investors that directly
invest in private companies, or that engage in buyouts of public companies,
resulting in the delisting of public equity. Institutional and retail investors
provide the capital for private equity, and the capital can be utilized to fund
new technology, make acquisitions, expand working capital, and to bolster
and solidify a balance sheet.
-Private Debt - -Private debt is the debt accumulated by individuals or
private businesses. Private debt can take numerous forms; a personal loan,
credit card, corporate bond or business loan for instance.
-Traditional Investments - -Typically, traditional investments include
publicly traded equities, fixed-income securities, and cash. For example, if a
particular investment (such as private equity) is not commonly covered as
equity in books on investing, then many people would view it as an
alternative investment.
-Deferred Consumption - -Saving is income not spent, or deferred
consumption.
-Investment - -A good definition of an investment is that it is deferred
consumption. Any net outlay of cash made with the prospect of receiving
future benefits might be considered an investment. So investments can
range from planting a tree to buying stocks to acquiring a college education.
-Institutional Quality Investment - -is the type of investment that financial
institutions such as pension funds or endowments might include in their
holdings because they are expected to deliver reasonable returns at an
acceptable level of risk. For example, a pension fund would consider holding
the publicly traded equities of a major corporation but may be reluctant to
hold collectibles such as baseball cards or stamps.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Victorious23. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £6.80. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
81531 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now