Illiquidity - Study guides, Class notes & Summaries

Shortcomings of risk metrics -May not scale over time -Historical data may be meaningless -Not designed to account for catastrophes -VaR says nothing about losses in excess of VaR -May not handle sudden illiquidity Importance of communication for risk managers Need to assess risk and tell management so they can determine which risks to take on Ways firms can fail to account for risks -Firm may ignore known risk -Somebody in firm may know about risk, but it's not captured b...

CAIA Level 1 Exam Study Guide Define investment - Investment is deferred consumption List the four major types of real assets other than land and other types of real estate. - Natural resources, commodities, infrastructure, and intellectual property. List the three major types of alternative investments other than real assets in the CAIA curriculum. - Hedge funds, Private Equity, and Structured Products Name the five structures that differentiate traditional and alternative investm...

Define investment correct answersInvestment is deferred consumption List the four major types of real assets other than land and other types of real estate. correct answersNatural resources, commodities, infrastructure, and intellectual property. List the three major types of alternative investments other than real assets in the CAIA curriculum. correct answersHedge funds, Private Equity, and Structured Products Name the five structures that differentiate traditional and alternative inv...

CAIA level 1 - Topic 2 Introduction to alts Study Guide with Complete Solutions 4 types of alternative assets - Answer️️ -Alternatives are defined by inclusion: Real Assets Hedge Funds Private Equity Structred products Real Assets - Answer️️ -Direct ownership of non financial assets: - natural resources - commodities - real estate - land - infrastructure - IP (intellectual property) 5 Structures of Alternatives - Answer️️ -TRICS: - trading - marked by high skill & com...

Module 17: Lesson 3 Disadvantages of Real Estate Investment Illiquidity - correct answer An inability to convert assets into cash quickly without considerable loss. What are the principal reasons for the illiquidity of real estate investments? - correct answer 1. Real estate transactions are complicated 2. There is no tangible marketplace where real estate can be turned over quickly This is mainly due to the localization of any real estate market. How can the local nature of the real es...

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 - A...

CAIA - Chapter 1 Review Questions with Complete Solutions Define investment Investment is deferred consumption. List four major types of real assets other than land and other types of real estate. Natural resources, commodities, infrastructure and intellectual property List the three major types of alternative investments other than real assets in the CAIA curriculum Hedge Funds, Private Equity, Structured Products Name the five structures that differentiate traditional and alte...

Real Estate Investments in Texas Section 10 Test || Questions & Solutions (100% Correct) Real Estate Investments in Texas Section 10 Test || Questions & Solutions (100% Correct) Let's start with the basics. Investors want to balance risk and reward. Where's the safest place to put your money? - ANSWER - Low-risk account or investment Effect of Time - ANSWER - -Inflation decreases the purchasing power of your money. -Money can either grow or decrease in value over time. -Maximizing ret...

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...

Capital Market Line ~~> A graphical representation of the relationship between risk and return, where risk is measured by standard deviation; the CML includes the concept of a risk-free rate of return Jenson Performance index ~~> Used in comparing performance money managers on a riskadjusted basis and can be used by itself. A number above 0.00 indicates the manager had better performance than would be expected given the risk he took... vice versa How are Treynor and Sharpe...