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

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 - ANSWER-...

liquid alternatives - ANSWER-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 existing alternative investment but imposes some constraint (e.g....

CAIA Level II Exam 2024 Questions & 100% Verified Answers Graded A+ Sample Question & Answer: Characteristics of public-private partnerships (PPPs) - Answer - 1. Financing comes from both debt and equity 2. Finite contracts with agreed upon pricing 3. used for developing existing public-sector assets and new greenfield projects 4. have been criticized for having low accountability and poor asset maintenance

Value of IP Investment - ANSWER-probability of generating large positive cash flows* cash flow expected in year 1 / investors required rate of return -g Operational Risk - ANSWER-In breaking down the impact of operational risks on hedge fund failures, fraud (i.e., lying about investments and/or performance) was the leading cause, followed by (in order): theft of assets, style drift and unauthorized trades, and inadequate resources. fee for taking a firm private - ANSWER-typically 1% cds...

CAIA Level II Sample Exam 2024 Questions & Answers (Scored A+) Intuition of the Black-Derman-Toy interest rate model - ANSWER-Observed spot rates drive rate levels while implied rate volatilities drive rate spreads Understanding the intuition of imposing these two conditions helps in understanding the essence of the BDT model. The spot rates in the currently observed term structure drive the overall levels of the rates that are projected throughout the binomial tree. The implied volatili...

CAIA Level 1 Wiley 2024 Topic 4.2 Questions and Answers (Graded A+) private equity (PE) funds investment pools created to hold portfolios of private equity securities. venture capital (VC) fund a private equity fund that pools the capital of large sophisticated investors to fund new and start-up companies. blind pool when investors don't know the underlying portfolio companies before committing capital. dry powder The amount committed but not yet called is an undrawn c...

CAIA Level 1 - Topic 6 Structured Products Questions and Answers 100% CorrectCAIA Level 1 - Topic 6 Structured Products Questions and Answers 100% CorrectCAIA Level 1 - Topic 6 Structured Products Questions and Answers 100% CorrectCAIA Level 1 - Topic 6 Structured Products Questions and Answers 100% CorrectPrimary economic role of structuring - ANSWER-Structured securities complete the market - structured to meet all different needs & helps investors prepare for all states of the world MBS - ...

Primary economic role of structuring - ANSWER-Structured securities complete the market - structured to meet all different needs & helps investors prepare for all states of the world MBS - ANSWER-Mortgage-backed securities - security secured by pool of mortgages (mortgages are the collateral) RMBS - Agency RMBS - ANSWER-Residential MBS - low credit risk: backed by the US government - has prepayment risk: borrower' s right to repay mortgage early a key risk Contraction risk - ANSWER-Av...

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...

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...