82 Free Online CFA Level 1 Practice Questions on Alternative Investments

If you’re a big fan of CFA blogs or forums, you’ll explore that practice exams and mock exams are very important solutions to pass the CFA exams. Practice is the key to acing the exams even if you can not get the best performance on the first practice exam. 82 Free Online CFA Level 1 Practice Questions on Alternative Investments will help you cover this topic thoroughly and effectively. Just go through the following questions and review the incorrect answers, for sure, you’ll improve your scores and significant skills when the exam is coming. Moreover, CFA sample exam questions free are organized under multiple choice testing in order to help you familiarize the exam format and condition. Test now to get the mastery of all the basic knowledge and hope it work well on you!

To view full questions and answers, please kindly visit our site:  http://cfaexampreparation.com/1059/82-free-online-cfa-level-1-practice-questions-on-alternative-investments/

Outside US, fewer indices for ETF-intraday trade not significant to those with longer time horizon-encounter inefficient markets with low trading volume (lg bid-ask spread)-Lg investors may choose to directly invest in an index portfolio, lower expenses and lower tax consequences.

• hurdle rate
• Net Asset Value
• ETF Disadvantages
• ETF Risks

mutual fund is value of the investment company's assets minus it's liabilities, stated on a per-share basis. -Share price on open-end fund will always equal NAV since the investment company is obligated to redeem shares at any time at current mkt value.-Share price closed-end fund may or may not equal NAV since share price is determined in secondary market.

• Net Asset Value
• ETF Advantages
• ETF Disadvantages
• hurdle rate

situation in commodities futures contracts where the futures price is below the spot price. Dominant traders in a commodity future are producers of the commodity hedging their exposure to financial losses arising from unexpected price declines in the future

• Sortino ratio
• Contango
• price return
• Backwardation

entitles holder to full ownership rights for an indefinite time period

• Cost Method (value real estate)
• Outright ownership (fee simple)
• distressed investing
• Risks of hedge funds

when end user of a commodity buys futures contracts to protect against unexpected futures price increases.

• convenience yield
• Long hedger - futures buyer
• Net Asset Value
• Closed-end Fund

what is value relative to an appropriate benchmark value

• Comparables approach
• Commodities
• Sales comparison approach
• Cost approach

Gross potential income - vacancy and collection loss estimate - insurance - real estate taxes - utility expense - estimated maintenance expense

• Long future
• Contango
• REIT
• NOI =

Strive to match returns to those of a particular stock index

• NOI =
• Index Fund
• Long future
• roll yield

1-roll over need to change maturity2-index weighting based on production or consumption change over time (NOT the Performance). manager need to change the size of exposure3-collateralize the derivative change cus T-bill has short maturity

• Sector Strategy
• Global Fund strategy
• Why commodity index is active strategy?
• Commodity correlation with bond/stock

involves creating a fund open to both individuals and institutional investors, which in turn invests in hedge fundsBene- enable investor with limited capital to invest, grant new access to hedge funds that might otherwise be closedDrawbacks- managers charge a mgnt fee in addition to those fees already charged by hedge fund manager. (1 and 10 fees)

• Fund expense ratio =
• distressed investing
• Hedge funds historically
• Fund of funds investing

special type of fund that invests in a portfolio of stocks or bonds and is designed to mimic the performance of a specified index. Shares are traded in secondary market like the shares of a closed-end fund, with the investor ability to trade at any time during market hours, sell short, or margin the shares.

• Exchange Traded Fund (ETF)
• Hedge Funds
• Stable Fund Value
• Open-end Fund