Exam (elaborations)
CAIA LEVEL 1 EXAM REVIEW QUESTIONS WITH CORRECT ANSWERS
- Course
- Institution
CAIA LEVEL 1 EXAM REVIEW QUESTIONS WITH CORRECT ANSWERS
[Show more]
Content preview
CAIA LEVEL 1 EXAM REVIEWQUESTIONS WITH CORRECT ANSWERS
Absolute Returns - Answer-An absolute return standard means that returns are
evaluated relative to the riskless rate, or zero, and therefore independently of
performance in equity markets, debt markets, or any other markets.
Jarque-Bera test - Answer-involves a statistic that is a function of
the skewness and excess kurtosis of the sample: JB = (n∕6)[S2
+ (K2 ∕4)] where JB is the Jarque-Bera test statistic, n is the
number of observations, S is the skewness of the sample, and
K is the excess kurtosis of the sample. TEST STATISTIC > CRITICAL VALUE =
REJECT NULL
Distribution Value to Pay-in-ratio - Answer-Does not depend on changes in NAV
Treynor Ratio - Answer-(Expctd rtrn - RF)/ Beta
Ex Post Alpha - Answer-Return attribution analysis best tool
Beta Expansion - Answer-observed during down market cycles and primarily higher
correlation between HF & systematic returns
P-Value - Answer-Accept null if greater than significance level
Data dredging - Answer-overusing statistical rests to identify significant relationships
with little regard for underlying economic rationale
Data mining - Answer-vigorously testing data until valid relationships are found
Asset gatherer - Answer-deliver beta as cheaply and efficiently as possible
NOI - Answer-taxes, insurancem operating costs
REITs - Answer-dividends taxed at investor level; prices determined by market
idiosyncratic prepayments - Answer-prepayments not motivated by interest rates or
econ activity
benefits commodity trading advisors - Answer-diversification, performance , access,
transparency, liquidity, taxes, low FX risk
Weighted Moving Avg - Answer-
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller biggdreamer. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
78637 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now