其它投资.docx

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1、Alternative Invest ment 1. Which of the following is least likely to be considered an alternative investment?A. Real estateB. CommoditiesC. Long-only equity fundsC is correct.Long-only equity funds are typically considered traditional investments and real estate and commodities are typically classif

2、ied as alternative investments.2. Private equity funds are most likely to use:A. merger arbitrage strategies.B. leveraged buyouts.C. market-neutral strategies.B is correct.The majority of private equity activity involves leveraged buyouts. Merger arbitrage and market neutral are strategies used by h

3、edge funds.3. An investor is seeking an investment that can take long and short positions, mayuse multi-strategies, and historically exhibits low correlation with a traditional investment portfolio. The investors goals will be bestsatisfied with an investment in:A. real estate.B. a hedge fund.C. a p

4、rivate equity fund.B is correct.Hedge funds may use a variety of strategies (event-driven, relative value, macro andequity hedge),generally have a low correlation with traditional investments, and may take long and short positions.4. Relative to traditional investments, alternative investments are l

5、east likely to becharacterized by:A. high levels of transparency.B. limited historical return data.C. significant restrictions on redemptions.A is correct.Alternative investments are characterized as typically having low levels of transparency.5. Alternative investment funds are typically managed:A.

6、 actively.B. to generate positive beta return.C. assuming that markets are efficient.A is correct.There are many approaches to managing alternative investment funds but typically these funds are actively managed.6. Compared with traditional investments, alternative investments are more likely tohave

7、:A. greater use of leverage.B. long-only positions in liquid assets.C. more transparent and reliable risk and return data.A is correct.Investing in alternative investments is often pursued through such special vehicles as hedge funds and private equity funds, which have flexibility to use leverage.

8、Alternative investments include investments in such assets as real estate, which is an illiquid asset, and investments in such special vehicles as private equity and hedge funds, which may make investments in illiquid assets and take short positions. Obtaining information on strategies used and iden

9、tifying reliable measures of riskand return are challenges of investing in alternatives.7. An investor is most likely to consider adding alternative investments to atraditional investment portfolio because:A. of their historically higher returns.B. of their historically lower standard deviation of r

10、eturns.C. their inclusion is expected to reduce the portfolios Sharpe ratio.A is correct.The historically higher returns to most categories of alternative investments compared with traditional investments result in potentially higher returns to a portfolio containing alternative investments. The les

11、s than perfect correlation with traditional investments results in portfolio risk (standard deviation) being less than the weighted average of the standard deviations of the investments. This has potential to increase the Sharpe ratio in spite of the historically higher standarddeviation of returns

12、of most categories of alternative investments.8. The potential benefits of allocating a portion of a portfolio to alternativeinvestments include:A. ease of manager selection.B. improvement in portfolio riskreturn.C. accessible and reliable measures of risk and return.B is correct.Adding alternative

13、investments to a portfolio may provide diversification benefits because of these investments less than perfect correlation with other assets in the portfolio. As a result, allocating a portion of ones funds to alternatives could potentially result in an improved riskreturn relationship. Challenges t

14、o allocating a portion of a portfolio to alternative investments include obtaining reliable measures of risk and return as well as selecting portfolio managers for the alternativeinvestments.9. An investor may prefer a single hedge fund to a fund of funds if he seeks:A. due diligence expertise.B. be

15、tter redemption terms.C. a less complex fee structure.C is correct.Hedge funds of funds have multi-layered fee structures, while the fee structure for a single hedge fund is less complex. Funds of funds presumably have some expertise in conducting due diligence on hedge funds and may be able to nego

16、tiate morefavorable redemption terms than could an individual investor in a single hedge fund.10. Hedge funds are similar to private equity funds in that both:A. are typically structured as partnerships.B. assess management fees based on assets under management.C. do not earn an incentive fee until

17、the initial investment is repaid.A is correct.Private equity funds and hedge funds are typically structured as partnerships where investors are limited partners (LP) and the fund is the general partner (GP). The management fee for private equity funds is based on committed capital whereas for hedge

18、funds the management fees are based on assets under management. For most private equity funds, the general partner does not earn an incentive fee until thelimited partners have received their initial investment back.11. An investor seeks a current income stream as a component of total return, anddes

19、ires an investment that historically has low correlation with other asset classes. The investment most likely to achieve the investors goals is:A. timberland.B. collectibles.C. commodities.A is correct.Timberland offers an income stream based on the sale of timber products as a component of total re

20、turn and has historically generated returns not highlycorrelated with other asset classes.12. Both event-driven and macro hedge fund strategies use:A. longshort positions.B. a top-down approach.C. long-term market cycles.A is correct.Longshort positions are used by both types of hedge funds to poten

21、tially profit from anticipated market or security moves. Event-driven strategies use a bottom-up approach and seek to profit from short-term events typically involving a corporate action, such as an acquisition or a restructuring. Macro strategies seek to profit fromexpected movements in evolving ec

22、onomic variables.13. Hedge fund losses are most likely to be magnified by a:A. margin call.B. lockup period.C. redemption notice period.A is correct.Margin calls can magnify losses. To meet the margin call, the hedge fund manager may be forced to liquidate a losing position in a security, which, dep

23、ending on the position size, could exert further price pressure on the security, resulting in further losses. Restrictions on redemptions, such as lockup and notice periods, may allow the manager to close positions in a more orderly manner and minimize forced-saleliquidations of losing positions.14.

24、 The first stage of financing at which a venture capital fund most likely invests isthe:A. seed stage.B. mezzanine stage.C. angel investing stage.A is correct.The seed stage supports market research and product development and is generally the first stage at which venture capital funds invest. The s

25、eed stage follows the angel investing stage. In the angel investing stage, funds are typically provided by individuals (often friends or family), rather than a venture capital fund, to assess anideas potential and to transform the idea into a plan. Mezzanine-stage financing isprovided by venture cap

26、ital funds to prepare the portfolio company for its IPO.15. What is the most significant drawback of a repeat sales index to measure returnsto real estate?A. Sample selection biasB. Understatement of volatilityC. Reliance on subjective appraisalsA is correct.A repeat sales index uses the changes in

27、price of repeat-sale properties to construct the index. Sample selection bias is a significant drawback because the properties that sell in each period vary and may not be representative of the overall market the index is meant to cover. The properties that transact are not a random sample and may b

28、e biased toward properties that changed in value. Understated volatility andreliance on subjective appraisals by experts are drawbacks of an appraisal index.16. Compared with direct investment in infrastructure, publicly traded infrastructuresecurities are characterized by:A. higher concentration ri

29、sk.B. more-transparent governance.C. greater control over the infrastructure assets.B is correct.Publicly traded infrastructure securities, which include shares of companies, exchange-traded funds, and listed funds that invest in infrastructure, provide the benefits of transparent governance, liquid

30、ity, reasonable fees, market prices, and the ability to diversify across underlying assets. Direct investment in infrastructure involves a large capital investment in any single project, resulting in high concentration risks. Direct investment in infrastructure provides control over theassets and th

31、e opportunity to capture the assets full value.17. An equity hedge fund following a fundamental growth strategy uses fundamentalanalysis to identify companies that are most likely to:A. be undervalued.B. be either undervalued or overvalued.C. experience high growth and capital appreciation.C is corr

32、ect.Fundamental growth strategies take long positions in companies identified, using fundamental analysis, to have high growth and capital appreciation. Fundamental value strategies use fundamental analysis to identify undervalued companies. Market-neutral strategies use quantitative and/or fundamen

33、tal analysis to identifyunder- and overvalued companies.18. Which of the following is most likely to be available when conducting hedge funddue diligence?A. The benchmark used by the fundB. Information on systems risk managementC. Details of investment strategies and processesA is correct.It should

34、be possible to identify the benchmark against which the fund gauges its performance in the hedge fund due diligence process. It should also be possible to establish the range of markets in which the fund invests as well as the funds general strategy. Hedge funds consider their strategies, systems, a

35、nd processes to beproprietary and are unwilling to provide too much information to potential investors.19. A private equity fund desiring to realize an immediate and complete cash exitfrom a portfolio company is most likely to pursue a(n):A. IPO.B. trade sale.C. recapitalization.B is correct.Private

36、 equity funds can realize an immediate cash exit in a trade sale. Using this strategy, the portfolio company is typically sold to a strategic buyer20. As the loan-to-value ratio increases for a real estate investment, risk most likelyincreases for:A. debt investors only.B. equity investors only.C. b

37、oth debt and equity investors.C is correct.The higher the loan-to-value ratio, the higher leverage is for a real estate investment, which increases the risk to both debt and equity investors.21. Which of the following forms of infrastructure investments is the most liquid?A. An unlisted infrastructu

38、re mutual fundB. A direct investment in a greenfield projectC. An exchange-traded master limited partnership (MLP)C is correct.A publicly traded infrastructure security, such as an exchange-traded MLP, provides the benefit of liquidity.22. An investor chooses to invest in a brownfield rather than a

39、greenfieldinfrastructure project. The investor is most likely motivated by:A. growth opportunities.B. predictable cash flows.C. higher expected returns.B is correct.A brownfield investment is an investment in an existing infrastructure asset, which is more likely to have a history of steady cash flo

40、ws compared with that of a greenfield investment. Growth opportunities and returns are expected to be lower forbrownfield investments, which are less risky than greenfield investments23. The privatization of an existing hospital is best described as:A. a greenfield investment.B. a brownfield investm

41、ent.C. an economic infrastructure investment.B is correct.Investing in an existing infrastructure asset with the intent to privatize, lease, or sell and lease back the asset is referred to as a brownfield investment. An economic infrastructure asset supports economic activity and includes such asset

42、s as transportation and utility assets. Hospitals are social infrastructure assets, which arefocused on human activities.24. A hedge fund invests primarily in distressed debt. Quoted market prices areavailable for the underlying holdingsbut they trade infrequently. Which of the following will the he

43、dge fund most likely use in calculating net assetvalue for trading purposes?A. Average quotesB. Average quotes adjusted for liquidityC. Bid prices for short positions and ask prices for long positionsB is correct.Many practitioners believe that liquidity discounts are necessary to reflect fair value

44、. This has resulted in some funds having two NAVs - for trading and reporting. The fund may use average quotes for reporting purposes but apply liquidity discounts fortrading purposes.25. Angel investing capital is typically provided in which stage of financing?A. Later-stage.B. Formative-stage.C. M

45、ezzanine-stage. B is correct.Formative-stage financing occurs when the company is still in the process of beingformed and encompasses several financing steps. Angel investing capital is typically raised in this early stage of financing.26. If a commoditys forward curve is in contango, the component

46、of a commoditiesfutures return most likely to reflect this is:A. spot prices.B. the roll yield.C. the collateral yield.B is correct.Roll yield refers to the difference between the spot price of a commodity and the price specified by its futures contract (or the difference between two futures contrac

47、ts with different expiration dates). When futures prices are higher than the spot price, the commodity forward curve is upward sloping, and the prices are referred to as being in contango. Contango occurs when there is little or noconvenience yield.27. United Capital is a hedge fund with $250 million of initial capital. United chargesa 2% management fee based on assets under management at year end, and a 20% ince