Caia level 1 - Study guides, Class notes & Summaries

CAIA level 1 - Topic 2 Introduction to alts with Complete Solutions CAIA level 1 - Topic 2 Introduction to alts with Complete Solutions CAIA level 1 - Topic 2 Introduction to alts with Complete Solutions 4 types of alternative assets - ANSWER-Alternatives are defined by inclusion: Real Assets Hedge Funds Private Equity Structred products Real Assets - ANSWER-Direct ownership of non financial assets: - natural resources - commodities - real estate - land - infrastructure - I...

Standard I(A) - Knowledge of Law - ANSWER-Understand and comply with all applicable laws, rules and regulations (including the CFA institutes code) of any government, regulatory organization, licensing agency, or professional association governing their professional activities. In the event of a conflict, comply with the more strict law, rule or regulation. Must not knowingly participate or assist in and must disassociate from any violation of such laws, rules or regulations Standard I(B)- In...

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 1 Exam Questions and Answers

CAIA level 1 Questions with Answers 100% Accurate Standard I(A) - Knowledge of Law Understand and comply with all applicable laws, rules and regulations (including the CFA institutes code) of any government, regulatory organization, licensing agency, or professional association governing their professional activities. In the event of a conflict, comply with the more strict law, rule or regulation. Must not knowingly participate or assist in and must disassociate from any violation of such laws...

liquid alternatives - ANSWER-Liquid alternatives typically have (1) constraints on permissible investments strategies (for example, liquidity and leverage limits), (2) no incentive fees, (3) less skilled managers as a result of less attractive compensation and limited strategies, and (4) an inability to earn substantial illiquidity premiums. constrained clone - A liquid investment fund that seeks to replicate the strategy of an existing alternative investment but imposes some constraint (e.g....

Absolute return products are investment products viewed as having little or no return correlation with traditional assets, and have investment performance that is often analyzed on an absolute basis rather than relative to the performance of traditional investments. - ANSWER-absolute return products An absolute return standard means that returns are to be evaluated relative to zero, a fixed rate, or relative to the riskless rate, and therefore independently of performance in equity markets, ...

CAIA LEVEL 1 EXAM WITH QUESTIONS AND ANSWERS ...

CAIA LEVEL 1 EXAM WITH QUESTIONS AND VERIFIED ANSWERS...

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-...