Caia chapter 1 - Study guides, Class notes & Summaries

CAIA CHAPTER 1 EXAM LATEST UPDATE...

CAIA chapter 14

CAIA chapter 19

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...

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

CAIA - Chapter 1 Review Questions with Complete Solutions Define investment Investment is deferred consumption. List four major types of real assets other than land and other types of real estate. Natural resources, commodities, infrastructure and intellectual property List the three major types of alternative investments other than real assets in the CAIA curriculum Hedge Funds, Private Equity, Structured Products Name the five structures that differentiate traditional and alte...

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