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6 Cards in this Set
- Front
- Back
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Which of the following investments is most likely to be considered an institutional quality alternative investment. A. Vintage wine collections B. Long/short equity hedge fund C. High-yield corporate bond fund D. Small capitalization equity index fund |
B. Long/short equity hedge fund |
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Which of the following alternative asset classes would grant an investor with a long position direct control of a nonfinancial asset representing actual consumption rights? A. Real assets B. Hedge funds C. Private equity D. Structured products |
A. Real Assets |
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An alternative investment is distinguished by the method in which it distributes the cash flows of its underlying assets among three different investor levels, which vary by risk tolerance. Which of the following structures best describes this particular characteristic of the investment? A. Trading structure B. Securities structure C. Institutional structure D. Compensation structure |
B. Securities structure |
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Which of the following is least likely to be a problem related to the return characteristics of alternative investments? A. Illiquidity B. Inefficiency C. Absolute returns D. Non-normal returns |
C. Absolute returns |
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An alternative investment has highly variable cash flows that occur at irregular intervals. Which of the following methods of analysis is most likely necessary to analyze the investment returns? A. Statistical methodology B. Valuation methodology C. Return computation methodology D. Portfolio management methodology |
C. Return computation methodology |
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Which of the following is least likely a goal of alternative investing? A. Absolute returns B. Benchmark returns C. Active management D. Return diversification |
B. Benchmark returns |
