Caia chapter - Study guides, Class notes & Summaries

CAIA chapter 14: Exam Review Questions and answers, rated A+ What are the 5 common attributes of real estate that can encourage its inclussion in an investment portfolio? 1) Potential to offer absolute returns 2) Potential to hedge against unexpected inflation 3) Potential to provide diversification with stocks and bonds 4) Potential to provide cash inflows 5) Potential to provide income tax advantages What are the 3 disadvantages of real estate? 1) Heterogeneity 2) Lumpiness 3) Il...

CAIA chapter 12: Exam Review Questions and answers/ Why are commodities often viewed as an asset class that helps diversify portfolio of traditional assets? - -Commodities has lack of return correlation with traditional assets Define nominal price - -Nominal price refers to the stated price of an asset measured using the contemporaneous values of a currency Define inflation - -Inflation is the decline in the value of money relative to the value of general budle of goods and services D...

CAIA chapter 3: Exam Review Questions and answers/ VERIFIED/ Define continuous compounding - -Continuous compouding assumes that earnings can be instantaneously reinvested to generate additional earnings Define discrete compounding - -Discrete compounding inludes any compounding interval other than continuous compounding such as daily, monthly or annual What is a log return? - -Log return is a continuously compounded return that can be formed by taking the natural logarithm of a wealt...

Why are commodities often viewed as an asset class that helps diversify portfolio of traditional assets? - Answer-Commodities has lack of return correlation with traditional assets Define nominal price - Answer-Nominal price refers to the stated price of an asset measured using the contemporaneous values of a currency Define inflation - Answer-Inflation is the decline in the value of money relative to the value of general bundle of goods and services Define real price - Answer-Real pric...

CAIA Level 1 - Chapter 1: What is an Alternative Investment?

Define continuous compounding - Answer Continuous compouding assumes that earnings can be instantaneously reinvested to generate additional earnings Define discrete compounding - Answer Discrete compounding inludes any compounding interval other than continuous compounding such as daily, monthly or annual What is a log return? - Answer Log return is a continuously compounded return that can be formed by taking the natural logarithm of a wealth ration What is a return computation i...

Define continuous compounding - Answer Continuous compouding assumes that earnings can be instantaneously reinvested to generate additional earnings Define discrete compounding - Answer Discrete compounding inludes any compounding interval other than continuous compounding such as daily, monthly or annual What is a log return? - Answer Log return is a continuously compounded return that can be formed by taking the natural logarithm of a wealth ration What is a return computation i...

CAIA chapter 12 Questions and answers

CAIA Exam 1 Chapter 1 Questions and Answers 100% Correct | Updated 2024