Caia level i - Study guides, Class notes & Summaries

CAIA Level II Questions with Correct Answers 2024 Upstream Commodity Producer typically farmers of firms extracting commodities. Downstream commodity producer processed a commodity(s) into a marketable product Brainpower Read More Previous Play Next Rewind 10 seconds Move forward 10 seconds Unmute 0:00 / 0:15 Full screen Excess Return Index tracks the performance of a portfolio of commodity futures in excess of the risk-free rate. Total Return index tracks...

5th percentile vs 25th percentile performance - ANSWER-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 historical performance alternative asset performance evaluation - ANSWER-unlike in traditional assets, alpha is difficult to define in alternatives investing; success can be defined as posit...

CAIA Level I Exam -with 100% verified solutions

CAIA Level II Exam Questions & Answers 100% 5th percentile vs 25th percentile performance - ANSWER-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 historical performance alternative asset performance evaluation - ANSWER-unlike in traditional assets, alpha is difficult to define in alternativ...

What advantage do multi-factor models have over single-factor models, such as the Capital Asset Pricing Model? Multi-factor models tend to explain systematic returns much better than do single-factor models. By doing so, multi-factor models are generally believed to produce better estimates of idiosyncratic returns. List the three major categories of factors that drive asset returns. Macroeconomic factors, fundamental/style/investment/dynamic factors, and statistical factors. What are the ...

CAIA Level II Exam Questions and Answers

Upstream Commodity Producer - ANSWER-typically farmers of firms extracting commodities. Downstream commodity producer - ANSWER-processed a commodity(s) into a marketable product Excess Return Index - ANSWER-tracks the performance of a portfolio of commodity futures in excess of the risk-free rate. Total Return index - ANSWER-tracks the performance of a fully collateralized portfolio of commodity futures Characteristics of public-private partnerships (PPPs) - ANSWER-1. Financing comes...

CAIA Level II Exam Questions and Answers 100% Solved What advantage do multi-factor models have over single-factor models, such as the Capital Asset Pricing Model? - ANSWER-Multi-factor models tend to explain systematic returns much better than do single-factor models. By doing so, multi-factor models are generally believed to produce better estimates of idiosyncratic returns. List the three major categories of factors that drive asset returns. - ANSWER-Macroeconomic factors, fundamental/sty...

5th percentile vs 25th percentile performance - ANSWER-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 historical performance alternative asset performance evaluation - ANSWER-unlike in traditional assets, alpha is difficult to define in alternatives investing; success can be defined as posit...

CAIA Level II Exam I Questions and Answers