What are hedge funds - Study guides, Class notes & Summaries

CAIA Practice Questions What assets are often characterized as traditional by some and alternatives by others in: hedge funds, private equity, and real assets - Hedge Funds: Liquid alternative mutual funds Private Equity: Closed-end funds with illiquid holdings Real Assets: Public real estate and public equities of corporations with performance dominated by stable positions in real assets 4 major methods of analysis that distinguish the analysis of alternative investments from trad...

SIE Comprehensive Final Exam (2024/2025) || With Questions & All Correct Solutions (Rated A+) SIE Comprehensive Final Exam (2024/2025) || With Questions & All Correct Solutions (Rated A+) What is a tender offer? - ANSWER - When a company offers to buy outstanding securities for cash or for cash plus other securities from its stockholders or bondholders What is a buy-back? - ANSWER - Sometimes referred to as a repurchase, is when a company buys its own outstanding securities in the open ma...

Securities Industry Essentials Certification Exam (2024) || With Questions & 100% Accurate Answers Securities Industry Essentials Certification Exam (2024) || With Questions & 100% Accurate Answers All broker/dealers registered with the SEC must be SPIC members except: - ANSWER - - banks that deal exclusively in municipal securities - firms that deal exclusively in U.S. government securities - firms that deal exclusively in redeemable investment company securities What is the definition...

How are hedge fund databases populated and what is the implication of that process? A) Hedge fund managers required to report performance, which allows us to see complete information on hedge fund industry assets B) Hedge fund managers required to report performance, which leads to biases in return calculations C) Hedge fund mangers voluntarily report performance, which leads to biases in return calculations D) Hedge fund mangers voluntarily report performance, which allows us to see comple...

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 corporations with performance dominated by stable positions in real assets 4 major methods of analysis that distinguish the analysis of alternative investments from trad. investments - ANSWER-...

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 are based on historically observed behavior. Henry Thompson examines a sample of returns for a private equity fund and finds that the sample excess kurtosis equals 3. Regarding the private ...

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 real assets in the CAIA curriculum. - ANSWER-Hedge funds, Private Equity, and Structured Products Name the five structures that differentiate traditional and alternative investments - ANSWER-...

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) was the leading cause, followed by (in order): theft of assets, style drift and unauthorized trades, and inadequate resources. fee for taking a firm private - ANSWER-typically 1% cds...

CAIA Level 2 Exam Questions And Answers 100% Verified Which U.S. regulatory body is responsible for overseeing the derivatives market? - answerThe U.S. Commodity Futures Trading Commission (CFTC) Of the following U.S. federal statutes, which one provides registration and regulation of persons and entities who are engaged in providing advice to others? A.The Securities Act of 1933 B. The Securities Exchange Act of 1934 C. The Investment Advisers Act of 1940 D. The Investment Company Act ...

©BRAINBARTER 2024/2025 IFIC Chapter 13 Exam Questions With Verified Answers. Alternative Managed Products - answer-professionally managed portfolios of basic asset classes and/or commodities and include segregated funds, hedge funds, alternative mutual funds, exchange-traded funds, closed-end funds and principal-protected notes (PPN) What Distinguishes Alternative Managed Products - answer-use of complex investment strategies, such as the use of derivatives, leveraging and principal guar...