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Free CFA Alternative Investments Practice Questions & Answers

550 exam-style Alternative Investments questions. Pick your answer, hit Check answer, and see the worked solution — free to start, no signup.

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Question 121

A long/short fund has: - Long exposure: 120 million - Short exposure: 80 million Net exposure = ?

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Question 122

Gross exposure = long + short Long = 150 million Short = 100 million Gross exposure = ?

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Question 123

A distressed fund buys a bond at 40% of par. Recovery is 60% of par. Return = ?

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Question 124

A fund charges: - 2% management fee - 20% performance fee - Gross return: 15% Net return = ?

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Question 125

A hedge fund’s beta measures:

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Question 126

A hedge fund’s crisis beta refers to:

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Question 127

A hedge fund with monthly liquidity is more likely to hold:

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Question 128

A hedge fund’s liquidity risk increases when:

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Question 129

A fund with negative credit exposure benefits when:

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Question 130

A fund‑of‑funds (FoF) primarily provides:

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Question 131

A major disadvantage of fund‑of‑funds is:

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Question 132

A multi‑strategy hedge fund differs from a FoF because it:

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Question 133

A key benefit of multi‑strategy funds is:

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Question 134

A FoF’s liquidity is usually:

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Question 135

A FoF with many underlying managers faces:

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Question 136

A FoF that allocates heavily to illiquid underlying funds is exposed to:

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Question 137

A FoF’s performance is most influenced by:

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Question 138

A multi‑strategy fund with centralized risk management benefits from:

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Question 139

A FoF’s “look‑through” risk analysis helps identify:

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Question 140

A FoF with high exposure to equity‑long/short managers will likely show:

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Question 141

A multi‑strategy fund may outperform a FoF because:

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Question 142

A FoF’s operational due diligence focuses on:

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Question 143

A FoF with high concentration in one manager faces:

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Question 144

A multi‑strategy fund’s internal capital allocation is typically based on:

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Question 145

A FoF’s crisis performance often suffers because:

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Question 146

A FoF with low transparency from underlying managers faces:

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Question 147

A multi‑strategy fund with strong internal risk controls is less likely to:

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Question 148

A FoF charges: - 1% management fee - 10% performance fee Underlying funds return 12%. FoF net return (before underlying fees) = ?

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Question 149

A FoF invests: - 50% in Fund X (beta = 0.6) - 50% in Fund Y (beta = 1.0) Portfolio beta = ?

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Question 150

A FoF has: - Gross return: 10% - Management fee: 1% - Performance fee: 10% of net Net return = ?

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Free CFA Alternative Investments Practice Questions & Answers

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