47 Free CFA Mock Exam Questions and Answers on Alternative Investments

47 Free CFA Mock Exam Questions and Answers on Alternative Investments can help you pass this topic area in the CFA exam with flying colors. Many test-takers underestimate this topic portion of the exam until they start the exam and realize that how complicated an seem-to-be-easy topic is. So, let’s go through end-of-chapter questions as well as practice exam questions to enhance good grounding of alternative investments. Don’t be afraid of the next six-hour exam, our CFA sample exam questions free will help you prepare for the exam in the most effective way and be willing to win the game. Hope you overcome this exam and get a CFA certification as expected.
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. Less effective inflation hedge versus direct real estate investments.2. Financed through bond issuance by the private company as well as byy equity.3. Can be classified as either a real estate investment, private equity, or an exclusive investment class.

• Direct Private Equity Investments
• Characteristics of NCREIF indices
• 3 Characteristics of an Infrastructure Investment
• 4 Characteristics of Direct Real Estate Investments

Read the chart down, not across.

• 3 Characteristics of an Infrastructure Investment
• To determine Backwardation or Contango in a Future's Price Chart, how should the chart be read?
• Diversification Benefits of Direct Real Estate Investments
• 2 Sortino Ratio Advantages over the Sharpe Ratio.

-Weights-Composition-Purpose

• Characteristics of NCREIF indices
• Commodity Indices differ with respect to their ...
• Commodity Indices
• Commingled Real Estate Funds (CREF)

1. Illiquid2. Inflation hedge (apartments)3. No centralized exchange4. High risk adjusted rewards for investors able to obtain cost efficient, high quality information.

• 4 Characteristics of Direct Real Estate Investments
• Index to use for direct real estate investments.
• Index to use for indirect real estate investments.
• 3 Characteristics of an Infrastructure Investment

-Early Stage-Late Stage

• 3 Stages of Early Stage Venture Capital Financing
• 3 Venture Capital Investors
• 2 Stages of Venture Capital Financing
• 2 Issuers of Venture Capital

NCREIF

• Diversification Benefits of Direct Real Estate Investments
• 4 Characteristics of Direct Real Estate Investments
• Index to use for direct real estate investments.
• Index to use for indirect real estate investments.

Later futures prices are higher than earlier futures prices.

• Commodity Indices
• Backwardation
• Decision Risk
• Contango

-Selection Criteria-Style Classification-Weighting scheme-Rebalancing Scheme-Investability

• Investability of Hedge Fund Indices General Rule.
• 5 Differences in Hedge Fund Index construction
• 3 Hedge Fund Specific factors
• 3 Hedge Fund Index Construction Biases

-When calculating drawdowns, losses are typically not compounded.-The entry or exit to or from hedge funds by investors is normally allowed on a quarterly or less frequent basis than the monthly return calculation.

• Contrast between unhedged NAREIT index and hedged NAREIT index.
• 4 Alternative to the Sharpe Ratio for hedge fund performance.
• 3 Shortcomings of the Sharpe ratio for hedge fund performance evaluation.
• How does reporting and compounding frequency affect hedge fund performance?

-Trend following-Contrarian

• 3 Venture Capital Investors
• 2 Managed Futures Investment Styles
• Later Financing Stage
• Managed Futures Systematic Trading Strategies