Question 2 of 51

Which of the following characteristics is most commonly associated with alternative investments compared to traditional investments?

In a limited partnership structure for alternative investments, the Limited Partners (LPs) typically:

A private equity fund charges a management fee of 2 percent. This fee is most likely calculated based on:

In the context of incentive fees, a 'soft hurdle rate' means that:

A catch-up clause in a private equity partnership agreement typically benefits the:

Which waterfall structure is most advantageous to the General Partner?

A clawback provision in a private equity fund is designed to:

A hedge fund has a '1 and 20' fee structure with a high-water mark. The fund has a NAV of 100 million at the start of the year and 110 million at year-end (before fees). The previous high-water mark was 115 million. What is the total fee paid?

A fund has a committed capital of 100 million and invested capital of 40 million. If the management fee is 1.5 percent based on committed capital, what is the annual management fee?

A hedge fund strategy that seeks to profit from pricing discrepancies between related securities is best classified as:

An 'Activist Shareholder' hedge fund strategy is most likely a subcategory of:

Which bias typically results in hedge fund indices reporting higher returns and lower risk than is actually realized by investors?

Backfill bias in hedge fund indices refers to:

A 'lockup period' for a hedge fund is best described as the time during which:

The primary disadvantage of investing in a fund-of-funds compared to a single hedge fund is:

In the context of venture capital, 'angel investing' typically occurs during which stage?

Mezzanine-stage financing in venture capital is primarily used to:

A 'trade sale' exit strategy in private equity involves:

Private debt investment that involves purchasing the debt of companies in bankruptcy is known as:

In commodity valuation, if the convenience yield is high, the market is likely in:

Which of the following is defined as the value of having physical possession of a commodity?

Investments in infrastructure assets that are yet to be constructed are referred to as:

Compared to greenfield investments, brownfield infrastructure investments typically offer:

The return measure that substitutes downside deviation for standard deviation is the:

The Calmar ratio is calculated as average annual compound return divided by:

If a hedge fund has a return distribution with significant negative skewness, the Sharpe ratio will likely:

An investor invests 100 million in a hedge fund with a '2 and 20' fee structure (2 percent management fee, 20 percent incentive fee). The management fee is calculated on year-end AUM. The fund earns a 10 percent gross return in Year 1. There is no hurdle rate. What is the investor's return after fees?

A 'hard hurdle rate' of 5 percent with a 20 percent incentive fee implies that:

Which real estate index type is most likely to underestimate volatility due to infrequent data points?

Timberland returns are driven by all of the following EXCEPT:

In a 'Management Buyout' (MBO), the buyers of the company are:

Which of the following describes a 'Convertible Arbitrage' hedge fund strategy?

The 'dry powder' of a private equity fund refers to:

Which type of infrastructure investment involves the highest degree of construction risk?

A 'Market Neutral' equity hedge fund strategy attempts to:

Which of the following is a quantitative directional strategy?

What is the key difference between a 'management fee' and an 'incentive fee'?

A fund with a 100 million investment grows to 120 million. The hurdle rate is 8 percent (hard). The incentive fee is 20 percent. What is the incentive fee?

Real Estate Investment Trusts (REITs) are typically:

Which of the following is considered a 'social infrastructure' asset?

The price of a forward contract on a commodity with zero storage costs and zero convenience yield should be:

A 'Notice Period' refers to the time:

Which ratio uses 'beta' as the measure of risk in the denominator?

If returns on alternative investments are smoothed (e.g., via appraisal), the correlation with traditional assets will likely be:

In a 'fund-of-funds' with a 1 and 10 fee structure investing in funds with 2 and 20 structures, the total fee burden is:

Venture capital funds typically exit their investments through:

An investor owns a 'Protective Put'. This position consists of:

Why do private equity funds charge management fees on committed capital rather than invested capital?

A 'Secondary Sale' in the context of private equity means:

The 'Multiple of Invested Capital' (MOIC) is a performance measure defined as: