Question 1

A new infrastructure project is a _____ project.&#10;A) blue field&#10;B) red field&#10;C) gold field&#10;D) greenfield

Accepted Answer

A new infrastructure project is referred to as a "greenfield" project, which means it is built from scratch on undeveloped land.

Question 2

In the context of infrastructure investing, &#34;PPP&#34; stands for&#10;A) per-person project&#10;B) public/private partnership&#10;C) progressive project program&#10;D) programmed premium project

Accepted Answer

PPP stands for public/private partnership, which is a type of infrastructure investing in which the government and private sector work together to finance and operate a project.

Question 3

Which of the following is a characteristic of most infrastructure projects?&#10;A) long life&#10;B) unstable cash flows&#10;C) little leverage&#10;D) liquid

Accepted Answer

Infrastructure projects typically have a long life due to their nature, such as roads, bridges, and utilities, which are designed to last for many years.

Question 4

A primary objective of most hedge funds is&#10;A) maximum capital appreciation&#10;B) income generation&#10;C) stable returns&#10;D) high correlation with the broad equity market.

Accepted Answer

The answer of A primary objective of most hedge funds...

Question 5

All of the following are common hedge fund strategies except&#10;A) directional&#10;B) arbitrage/relative value&#10;C) long/short&#10;D) constant proportion

Accepted Answer

Constant proportion is not a common hedge fund strategy; it is more related to portfolio insurance or risk management techniques.

Question 6

&#34;Drawdown&#34; is primarily a measure of a fund's&#10;A) volatility&#10;B) profitability&#10;C) turnover&#10;D) management fee

Accepted Answer

Drawdown is a measure of the decline from a fund's peak value to its lowest point, reflecting the volatility and risk of the investment.

Question 7

A primary disadvantage of a hedge fund-of-funds is&#10;A) added risk&#10;B) higher expenses&#10;C) a tax disincentive&#10;D) high correlation

Accepted Answer

A hedge fund-of-funds typically incurs higher expenses due to the additional layer of management fees on top of the fees charged by the underlying hedge funds.

Question 8

Institutional investors seeking exposure to commodities normally use&#10;A) futures contracts&#10;B) individual equity positions&#10;C) physical assets&#10;D) investment contracts

Accepted Answer

Institutional investors typically use futures contracts to gain exposure to commodities because they allow for efficient and leveraged investment without the need to physically hold the commodity.

Question 9

Venture capital is a type of&#10;A) hedge fund&#10;B) municipal bond&#10;C) private equity&#10;D) infrastructure project

Accepted Answer

Venture capital is a form of private equity financing provided to startups and small businesses with high growth potential.

Question 10

The typical profitability pattern of private equity investments is called the&#10;A) J curve&#10;B) S curve&#10;C) U curve&#10;D) V curve

Accepted Answer

The J curve represents the typical profitability pattern of private equity investments, where initial losses are followed by gains as the investment matures.

Question 11

A strategy described as 130/30 involves&#10;A) equity and bonds&#10;B) long and short positions&#10;C) futures and options&#10;D) short and long-term investments

Accepted Answer

The answer of A strategy described as 130/30 involves&#10;A) equity...

Question 12

Mezzanine financing is analogous to a&#10;A) second mortgage&#10;B) margin loan&#10;C) unsecured signature loan&#10;D) zero coupon bond

Accepted Answer

The answer of Mezzanine financing is analogous to a&#10;A) second...

Deck 14: Alternative Assets