Caia exam 1 2024 - Study guides, Class notes & Summaries

CAIA Exam 2024 Questions & Answers 100% CAGR - ANSWER-compound annual growth rate annualized return - ANSWER-(1+HPR)^number of holding periods in one year - 1 multiple hedge fund aggregation - ANSWER-equal weighted approach, asset weighted, and arbitrary weight approach Performance index - ANSWER-R index = Sum of wi * Ri in the case of multiple fund aggregations, severals prefer reporting median return - ANSWER-you know what the median is---the fact that outliers are automatically ex...

CAIA Level 1 Exam Study Guide with Complete Solutions liquid alternatives - Answer️️ -Liquid alternatives typically have (1) constraints on permissible investments strategies (for example, liquidity and leverage limits), (2) no incentive fees, (3) less skilled managers as a result of less attractive compensation and limited strategies, and (4) an inability to earn substantial illiquidity premiums. constrained clone - A liquid investment fund that seeks to replicate the strategy of an...

CAIA Level 1 Glossary Exam Study Guide with Complete Solutions absolute return products - Answer️️ -Absolute return products are investment products viewed as having little or no return correlation with traditional assets, and have investment performance that is often analyzed on an absolute basis rather than relative to the performance of traditional investments. absolute return standard - Answer️️ -An absolute return standard means that returns are to be evaluated relative to z...

Alternative investments - ANSWER-Alternative investments are sometimes viewed as including any investment that is not simply a long position in traditional investments. Fixed-Income Securities - ANSWER-A fixed income security is an investment that provides a return in the form of fixed periodic payments and the eventual return of principal at maturity. Private equity - ANSWER-Private equity is capital that is not listed on a public exchange. Private equity is composed of funds and investor...

CAIA Level 2 Exam Study Guide with Complete Solutions Meta risks are qualitative risks not captured by specific and measurable financial risks. events. - Answer️️ -They include organizational and human behavior, moral hazard, the misuse and excessive dependence on quantitative methods, market interaction, and extreme capital market A distressed securities strategy is most likely to earn returns from liquidity risk. - Answer️️ -Global macro and equity long/short are most likely to ...

CAIA Level 1 Exam 2024 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 i...