S7 - Alt Inv post test

Which of the following may attract VC funding?

• A lifestyle company

• A Family company

• A High tech company with global markets

• A Low tech company without global markets

An angel investor is best described by which one of the following statements?

• A philanthropic benefactor of a firm who supports the firm with cash injections to enable it to pursue goals other than shareholder wealth maximization

• A person with extensive knowledge of business who is hired to take control of a firm in very poor circumstances

• A wealthy individual, generally with substantial business and entrepreneurial experience, who invests primarily in start-ups, early-stage, or expanding firms

• A CEO hired to turnaround a company by changing company strategy, products and processes

From the below options, which is the most preferred exit route for a Private Equity fund when they exit a portfolio investment?

• IPO

• Strategic sale

• Secondary sale

• All of the above

Compared with traditional investments, alternative investments are more likely to be characterized by higher:

• Transparency

• Liquidity

• Expected returns

• Regulation

Venture capital is invested in ____

• late-stage and bigger firms

• early-stage firms with short-term growth potential

• early-stage firms that do not plan for growth

• early-stage firms with long-term growth potential

The term ­­­­____________ is used for many investment strategies that have the form of a private partnership, are largely unregulated, and have an incentive performance fee structure.

• Venture Capital

• Private equity buyouts

• Mutual funds

• Hedge funds

REITs generate income primarily through

• Interest

• Fees

• Rentals

• Royalties

A private equity (PE) fund acquires a publicly traded company, delists it from the stock exchange, and initiates restructuring its operations. What type of investment is this?

• Venture Capital

• Angel Investing

• Buyout

• Growth equity

A commodity trader anticipates political instability in an oil-rich region and takes a large long position in crude oil. What is the trader hoping to profit from?

• Decreased demand

• Price decline

• Price appreciation

• Stable market returns

Which entity pools and packages loans for securitization?

• Mutual fund

• Investment Bank

• Special Purpose Vehicle (SPV)

• Federal Reserve