Other
CAIA EXAM STUDY GUIDE
- Course
- Institution
CAIA EXAM STUDY GUIDE
[Show more]
Content preview
CAIA EXAM STUDY GUIDECAGR - Answers-compound annual growth rate
annualized return - Answers-(1+HPR)^number of holding periods in one year - 1
multiple hedge fund aggregation - Answers-equal weighted approach, asset weighted,
and arbitrary weight approach
Performance index - Answers-R index = Sum of wi * Ri
in the case of multiple fund aggregations, severals prefer reporting median return -
Answers-you know what the median is---the fact that outliers are automatically excluded
from the calculation makes the median more robust than the average
arithmetic average - Answers-yields higher results than geometric average, but should
only be used when the objective is to measure a one period mean return
systematic trader - Answers-systematic-believe future price movements are based on
historic price movements within a quant framework, rely heavily on computer generated
trading signals to maintain systematic, disciplined approach, use mulitiple systems to
reduce volatility and produce stable returns
discretionary trader - Answers-base their decisions on technical and fundamental
analysis, as well as trading experience and and skills based over the years
Adv of Direct Ownership - Answers-investment control, ability to choose individual
investment, larger scale investment, tax timing benefit
4 types of RE - Answers-Residential, Commercial, Farmland, Timerberland
3 Performance drivers for PE - Answers-Fund manager selection
Portfolio Design
Commitment Management
Investment process - Answers-Setting portfolio objectives
portfolio design
managing liquidity
fund selection
continuous monitoring
active management and implementation
Bailey Criteria - Answers-Unambiguous, investible, measurable, pre-specified,
appropriate
, Manager selection - Answers-Wish list, Deal sourcing, Due diligence (screening, team
meeting, evaluation, final due diligence), Decision, Commitment
Alternative Methods for Estimated Betas - Answers-Proxying the beta using the
historical performance of a similar publicly traded asset
using another relative risk measurement
estimating bottom-up betas
modifying return data to estimate a beta
Source of liquidity - Answers-follow-on funding, liquidity lines, maturing investments,
realizations, selling limited partnership, distributions, limited parter default
Reasons interventionist outperform - Answers-Acting as an active shareholder
Ensuring interests are properly aligned
Talking advantage of portfolio relatedness
Avoiding corporate overhead costs
Focusing on an exit strategy
SPGSCI - Answers-performs best when energy prices are rising and commodity mkts
are in backwardation
DJAIG - Answers-Agriculture and metals either increase more in price or have greater
backwardation than energer
Bache Commodity Index - Answers-mkts are in contango and has lower drawdowns
than other indices when mkts decline
Rogers Int'l Commodity Index - Answers-agriculture outperforms metal and energy,
when natural gas prices decline, and when the USD depreciaes relative to the JPY CAD
and AUD
ML Commodity Index Xtra - Answers-energy prices are rising and in contangoed mkts
as a result of relatively long maturities
CRB Index - Answers-agriculture outperforms other commodity sectors and when mkts
are in contango
DB Liquid Commodity Index - Answers-forward curves are upward sloping and when
grains and energy performs well
Diapason Comodities Index - Answers-illiquid mkts trend higher
JPM Commodity Curve Index - Answers-front contracts underperform deferred contracts
and outperforms other indices when rolls are negative
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 or Stuvia-credit 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 GEEKA. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75759 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now