18 CFA Level 1 Mock Exam Questions and Answers on Alternative Investments

18 CFA Level 1 Mock Exam Questions and Answers on Alternative Investments solidify your knowledge on this topic and highlight the key points in the curriculum. As you know, there’re available numerous practice tests on the market, but many of them are in short of user orientation. That is not true to this free CFA practice test at all. It is friendly structured, which reveals simple background that make the online test questions outstanding. Consequently, you can completely concentrate on your practice without puzzling. Once completing all the questions, please check out your answers by clicking the submit button at the end of the test in order to explore your strengths and weaknesses in the learning process. Prompt answers will come out and your test will be automatically scored. Hope you deal with all of CFA sample exam questions free and top up for the next exam!
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spot price (1+rf) + storage costs - convenience yieldconvenience yield = value of having the physical commodity for use over the period of the futures contract

• Event driven strategies
• Future price (on commodity)
• mezzanine financing
• relative value

buyout - existing management team is involved in the purchasebuyin - external management team replaces the existing one

• management fee collection period
• macro strategies
• Event driven strategies
• management buyouts management buyins

the interest earned on collateral required to enter into a futures contract

• collateral yield
• macro strategies
• Roll yield
• relative value

...

• collateral yield
• macro strategies
• Event driven strategies
• sortino ratio

incentive fee is not paid on gains that just offsets prior losses

• high water mark
• collateral yield
• relative value
• Roll yield

1. organization2. portfolio management3. operations and controls4. risk management5. legal review6. fund terms

• Event driven strategies
• relative value
• alternative investment due dilligence
• real estate valuation

comparable sales approach income approachcost approach

• sortino ratio
• real estate valuation
• relative value
• collateral yield

formative - angel, seed, earlylater stage mezzanine stage financing

• sortino ratio
• Event driven strategies
• relative value
• VC funding stages

appraisal indexrepeat sales indexREIT indices

• high water mark
• Real estate performance measurement
• relative value
• real estate valuation

measures risk as a downside deviation rather than standard deviation

• Roll yield
• sortino ratio
• relative value
• macro strategies

market neutralfundamental growthfundamental valuequantitative directionalshort bias

• macro strategies
• VC funding stages
• Event driven strategies
• equity hedge fund strategies

contango = future prices higher than spot prices, little or no conv. yieldbackwardation = futures prices less than spot prices, high conv. yield

• sortino ratio
• collateral yield
• contango and backwardation
• real estate valuation

either beginning of year or end of year

• Event driven strategies
• management fee collection period
• management buyouts management buyins
• real estate valuation

buying security and selling short a related securityconvertible arbitrage fixed incomeasset backed fixed incomegeneral fixed incomevolatilitymulti strategy

• real estate valuation
• sortino ratio
• relative value
• Roll yield