THROUGH 120 RELATE TO ALTERNATIVE INVESTMENTS. (9 MINUTE...

Questions 115 through 120 relate to Alternative Investments. (9 minutes)

If the availability of a physical commodity over the period of a futures contract has value to users of the commodity, the

commodity is said to provide:

A)

storage yield.

collateral yield.

B)

convenience yield.

C)

Question #116 of 120 Question ID: 1146223

Josh Lacy, CFA, is analyzing a portfolio company held by his private equity firm to estimate its value in liquidation. Lacy

should most appropriately use:

an asset-based approach.

a comparables-based approach.

a discounted cash flow-based approach.

Question #117 of 120 Question ID: 1146229

Which of the following statements with respect to hedge fund investing is least accurate?

Hedge funds only publicly disclose performance

information on a voluntary basis.

Hedge funds are not typically registered with the SEC in

the United States.

Survivorship bias in hedge fund data causes risk to be

overstated because funds that take on more risk tend to

have higher returns.

Question #118 of 120 Question ID: 1146230

An investor who wants to hedge against inflation by allocating a portion of a portfolio to alternative investments

should most appropriately invest in:

real estate and commodities.

private equity and real estate.

commodities and private equity.

Question #119 of 120 Question ID: 1146224

A leveraged buyout firm that carries out a secondary sale has:

offered additional shares to the public.

exited an investment in a portfolio company.

received new capital from its general or limited partners.

Question #120 of 120 Question ID: 1146231

The notice period for a hedge fund is best described as the period following:

the opening of the fund to investors, before the fund is

closed to new investors.

a request for redemption of shares, within which the

fund must fulfill the request.

an investment in the fund, during which the investor is

not permitted to redeem shares.