NEW
Font size
WorksheetsAlternative Investment
Total questions: 10
Worksheet time: 20mins
Which of the following is least likely to be considered an alternative investment?
Real Estate
Commodities
Long-only equity funds
Relative to traditional investments, alternative investments are least likely to be characterized by
high levels of transparency.
limited historical return data
significant restrictions on redemptions
An analyst wanting to assess the downside risk of an alternative investment is least likely to use the investment’s:
Sortino ratio.
value at risk (VaR).
standard deviation of returns.
Risks in infrastructure investing are most likely greatest when the project involves:
construction of infrastructure assets.
investment in existing infrastructure assets
investing in assets that will be leased back to a government.
A hedge fund has the following fee structure: (see attachment)
The fund has a value of $583.1 million at the beginning of the year. After one year, it has a value of $642 million before fees. The net return to an investor for this year is closest to:
6.72%.
6.80%
7.64%.
An investor chooses to invest in a brownfield rather than a greenfield infrastructure project. The investor is most likely motivated by:
growth opportunities
predictable cash flows.
higher expected returns.
As the loan-to-value ratio increases for a real estate investment, risk most likely increases for:
debt investors only.
equity investors only.
both debt and equity investors.
An equity hedge fund following a fundamental growth strategy uses fundamental analysis to identify companies that are most likely to:
be undervalued.
be either undervalued or overvalued.
experience high growth and capital appreciation.
The first stage of financing at which a venture capital fund most likely invests is the:
seed stage.
mezzanine stage
angel investing stage.
An effective risk management process used by alternative investment funds most likely includes:
in-house valuations
internal custody of assets
segregation of risk and investment process duties
