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Alter Test - TE2
Alter Test - TE2
CLASS :
Alter Test - TE2
28 Questions DATE :
2. Which of the following is most likely a private real estate investment vehicle?
4. A hedge fund invests primarily in distressed debt. Quoted market prices are
available for the underlying holdings but they trade infrequently. Which of the
following will the hedge fund most likely use in calculating net asset value for
trading purposes?
A C. $38,445 B B. $52,425
C A. $43,425
7. The three main sources of return for commodities futures contracts most
likely are:
8. The first stage of financing at which a venture capital fund most likely invests is
the:
A B. collectibles. B C. commodities.
C A. timberland.
10. An effective risk management process used by alternative investment funds
most likely includes:
12. Which of the following least likely describes an advantage of investing in hedge
funds through a fund of funds? A fund of funds may provide investors with:
C A. a greenfield investment.
18. An investor may prefer a single hedge fund to a fund of funds if he seeks:
19. The most likely impact of adding commodities to a portfolio of equities and
bonds is to:
21. In commodity futures market pricing, when the convenience yield is higher
than the cost of carry, the roll yield is positive for:
22.
A A. 10.88%. B C. 9.68%.
C B. 9.79%.
C. significant restrictions on
C
redemptions.
C C. Quantitative directional
C B. more-transparent governance.
28. United Capital is a hedge fund with $250 million of initial capital. United
charges a 2% management fee based on assets under management at year
end, and a 20% incentive fee based on returns in excess of an 8% hurdle rate.
In its first year, United appreciates 16%. Assume management fees are
calculated using end-of-period valuation. The investor’s net return assuming
the performance fee is calculated net of the management fee is closest to:
A C. 12.80%. B B. 12.54%.
C A. 11.58%.
Answer Key
1. a 2. c 3. a 4. c
5. c 6. c 7. b 8. b