Value at risk var - Study guides, Class notes & Summaries

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 ...

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 ...

CAIA Practice Questions with correct Answers 2024 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 alternat...

CAIA QUESTIONS WITH SOLUTIONS 2024 An asset-pricing model that attempts to explain how investors should behave is a(n): 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 ...

Sets of data that are too large to be gathered and analyzed by traditional methods - Big Data An innovative item that uses sensors; wireless sensor networks; and data collection, transmission, and analysis to further enable the item to be faster, more useful, or otherwise improved - Smart Product A network of objects that transmit data to and from each other without human interaction - Internet of Things (IoT) Information, technology, and storage services contractually provided from remote ...

what is the goal of ERM? - to manage individual businesses within overall business portfolio what are the 4 benefits of active portfolio management? - 1. UNBUNDLING in terms of risk origination, retention, and transfer 2. RISK AGGREGATION across the whole company 3. setting RISK LIMITS & ASSET-ALLOCATION TARGETS 4. influencing TRANSFER PRICING, CAPITAL ALLOCATION, and INVESTMENT DECISIONS explain: UNBUNDLING in terms of risk origination, retention, and transfer - management can decide whe...

Essentials of Investments Ch. 1 – 5 Updated Q & A 2024 Holding-period return rate of return over a given investment period dollar weighted average return the internal rate of return on an investment scenario analysis process of devising a list of possible economic scenarios and specifying the likelihood of each one, as well as the HPR that will be realized in each case. probability distribution list of possible outcomes with associated probabilities expected retu...

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 ...

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...

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 ...