CAIA Chapter 8 Exam Questions and Answers (Graded A)CAIA Chapter 8 Exam Questions and Answers (Graded A)CAIA Chapter 8 Exam Questions and Answers (Graded A)CAIA Chapter 8 Exam Questions and Answers (Graded A)In CAPM model how is beta specified? - ANSWER-Beta is specified as the covariance of the asset's return with the return of the market portfolio, divided by the variance of the returns of the market portfolio What is the general interpretation outside the CAPM? - ANSWER-Beta refers to the...

CAIA Chapter 8 Exam Questions and Answers (Rated A+) In CAPM model how is beta specified? - ANSWER-Beta is specified as the covariance of the asset's return with the return of the market portfolio, divided by the variance of the returns of the market portfolio What is the general interpretation outside the CAPM? - ANSWER-Beta refers to the a measure of risk, or the bearing the risk, wherein the underlying risk is systematic (shared by at least some other investments and usually unable t...

In CAPM model how is beta specified? - ANSWER-Beta is specified as the covariance of the asset's return with the return of the market portfolio, divided by the variance of the returns of the market portfolio What is the general interpretation outside the CAPM? - ANSWER-Beta refers to the a measure of risk, or the bearing the risk, wherein the underlying risk is systematic (shared by at least some other investments and usually unable to be diversified or fully hedged without cost) and is pote...

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In CAPM model how is beta specified? - ANSWER-Beta is specified as the covariance of the asset's return with the return of the market portfolio, divided by the variance of the returns of the market portfolio What is the general interpretation outside the CAPM? - ANSWER-Beta refers to the a measure of risk, or the bearing the risk, wherein the underlying risk is systematic (shared by at least some other investments and usually unable to be diversified or fully hedged without cost) and is pote...

List the 3 primary elements that differentiate a hedge fund from other investment pools 1) Privately organized in most jurisdictions 2) Usually offers performance-based fees to its managers 3) Usually can apply leverage, use derivatives or utilize other investment felxibility List 6 investment flexibilities of hedge funds 1) Hedge fund strategies often invest in nonpublic, unlisted securities 2) Hedge funds often use leverage, at times very large amounts 3) Hedge funds often use der...

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 Define real price Real price refers to the price of an asset tha...