典型例题_Alternative-2017资料.docxVIP

财经学习，只在高顿http:// 财经学习，只在高顿 - - Alternative Investments (Time: 15 Min.) 1. Compared to traditional investments, alternative investments are most likely to be more: A. transparent B. leveraged C. liquid Answer: B Alternative investments tend to use more leverage and are typically less liquid and less transparent than traditional investments. 2. A portfolio manager who adds hedge funds to a portfolio of traditional securities is most likely seeking to: A. increase expected returns only. B. both increase expected returns and decrease portfolio variance. C. decrease portfolio variance only. Answer: B For a portfolio of traditional securities, adding alternative investments such as hedge funds can potentially increase the portfolio’s expected returns, because these investments often have higher expected returns than traditional investments, and decrease portfolio variance, because returns on these investments are less than perfectly correlated with returns on traditional investments. 3. Capital provided for companies beginning operation but before commercial manufacturing and sales have occurred best describes which stage in venture capital investing? A. Seed-stage B. Early-stage C. Later-stage Answer: B Early-stage financing is capital provided for companies moving into operation and before commercial manufacturing and sales have occurred. 4. Which of the following statements is least likely an advantage of investing in hedge funds through a fund of funds? Funds of funds provide: A. an increase in expected return through diversification. B. expertise in selecting funds and conducting due diligence. C. access to successful funds that may otherwise be closed to new investors. Answer: A Diversification results in risk reduction, not return enhancement. Further, the fees charged by the fund of funds manager will likely reduce returns relative to direct hedge fund investment. 5. Which classification of hedge funds is least likely to use a short position in stock as a