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L1 63 Introduction to Alternative Investments > Practice > Flashcards

Flashcards in Practice Deck (3)
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1
Q

Which of the following strategies is most likely to be pursued by a private equity fund? (63B, D)

A

Leveraged Buyouts (Use debt financing to acquire control of a publicly traded firm)

2
Q

Which of the following is least likely a type of Hedge Fund strategy? (D)

A

ETF

3
Q

Compared with purchasing commodities(benefit: Convenience Yield), long positions in commodity derivatives (Commodities Futures) offer the benefit of (63 D)

A

Benefit: No storage costs

Cost: Retain the risk and correlation characteristics of the udnerlying commodities