Test your basic knowledge |

Hedge Funds

Instructions:
  • Answer 46 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Transparent - verifiable - accountable - investible - reasonable - representative






2. Carry Trade - Yeild Curve relative value trades - Purchasing Power Parity - Valuation models - option pricing models






3. Use fundamental first then technical. Technical isn't used for idea generation but for execution of strategy.






4. Double fee - performance fee - taxes - limited tranparency - lack of control






5. Measures the convertible's price sensitivity relative to changes in interest rates






6. Credit spread






7. Measures the convexity of the convertible-stock price relationship






8. Measures the convertible's price sensitivity relative to changes in interest rates






9. Use technical for both idea generation and execution of strategy.






10. Specific nature of security - use of leverage - valuation method - manager skill






11. Access bias: imposing strict selection criteria on track records - transparency - valuation - AUM






12. Background - product info - performance - asset allocation - manager selection - portfolio construction - risk management - admin/op - client reporting - compliance/legal






13. Background - product info - performance - asset allocation - manager selection - portfolio construction - risk management - admin/op - client reporting - compliance/legal






14. Carry Trade - Yeild Curve relative value trades - Purchasing Power Parity - Valuation models - option pricing models






15. Definability - Commonality - Tradability






16. Recovery rate






17. Transparent - verifiable - accountable - investible - reasonable - representative






18. Diversification - econ of scale - info adv - liquidity - manager access - lower negotiated fees - lower reg hurdle - currency hedging - pro management






19. Measures sensitivity to changes in currency value






20. Changes in time






21. Tactical: skillful asset allocation based on changing market - Strategic: provide long term direction - Manager Selection: primary source - decide Which manager to use how much to allocation






22. Factors have futures and forwards readily available thus easiest to hedge - a significant source of risk - great volatility in risk over time - common among investor portfolios - investor chose investment based on alpha thus removing beta should be o






23. Diversification - econ of scale - info adv - liquidity - manager access - lower negotiated fees - lower reg hurdle - currency hedging - pro management






24. Tactical: skillful asset allocation based on changing market - Strategic: provide long term direction - Manager Selection: primary source - decide Which manager to use how much to allocation






25. Expected return of factor is negative - Benefit exceeds cost of positive return - Preexisting exposure - Risk factor is a by product of return and create great variation in return - Significant portion of variability can be explained by variation in






26. Idea generation - optimal idea expression - sizing the position - execution - managing risk






27. Access bias: imposing strict selection criteria on track records - transparency - valuation - AUM






28. Measures sensitivity to changes in currency value






29. Factors have futures and forwards readily available thus easiest to hedge - a significant source of risk - great volatility in risk over time - common among investor portfolios - investor chose investment based on alpha thus removing beta should be o






30. No transparency - - non-investible - lack of liquidity - difficult to replicate - report time lag






31. Changes in time






32. Double fee - performance fee - taxes - limited tranparency - lack of control






33. Idea generation - optimal idea expression - sizing the position - execution - managing risk






34. Always positive - highest for at the money - measures convertible's price sensitivity relative to changes in stock volatility






35. Underlying stock dividend yield






36. Definability - Commonality - Tradability






37. Specific nature of security - use of leverage - valuation method - manager skill






38. Underlying stock dividend yield






39. Credit spread






40. Recovery rate






41. Use fundamental first then technical. Technical isn't used for idea generation but for execution of strategy.






42. Measures the convexity of the convertible-stock price relationship






43. Always positive - highest for at the money - measures convertible's price sensitivity relative to changes in stock volatility






44. Expected return of factor is negative - Benefit exceeds cost of positive return - Preexisting exposure - Risk factor is a by product of return and create great variation in return - Significant portion of variability can be explained by variation in






45. No transparency - - non-investible - lack of liquidity - difficult to replicate - report time lag






46. Use technical for both idea generation and execution of strategy.






Sorry, Topic not found.:)

Seach or Brouse Basicversity:




Major Subjects

Tests & Exams


AP
CLEP
DSST
GRE
SAT
GMAT

Browse all subjects

Browse all tests

Most popular tests

//