1. Hedge funds, as a rule, are least susceptible to:
    1. Inflation risk
    2. Liquidity risk
    3. Reinvestment risk
    4. Capital impairment
  2. Fixed income securities in high yield funds are most subject to:
    1. Default risk
    2. Purchasing power risk
    3. Business risk
    4. Interest rate risk
  3. Arrange the following items in terms of their susceptibility to inflation risk, from least to greatest.
    1. A 4 year treasury note
    2. Commercial paper
    3. Emerging market debt mutual fund with an average maturity of 5 years
    4. Privately placed 7.3 year duration corporate bond
    5. Growth and income mutual fund
    1. II, I, III, V, IV
    2. V, IV, III, I, II
    3. V, III, II, I, IV
    4. V, III, IV, I, II
  4. Risks associated with private equity include:
    1. Capital impairment
    2. Business risk
    3. Market risk
    4. Total risk
    1. I
    2. I, IV
    3. III, IV
    4. I, II

Answers and Explanations

Related Articles
  1. Trading

    The ABCs Of Option Volatility

    The mystery of options pricing can often be explained by a look at implied volatility (IV).
  2. Financial Advisor

    6 Proven Tips For Series 6 Success

    These techniques can help you pass this test without the added stress.
  3. Personal Finance

    Tips for Taking the CFA Exam: Part 1

    Peter Mackey, head of exam development for the CFA Institute, shares his tips for taking the CFA level I, II and III exams.
  4. Personal Finance

    Tips for Taking the CFA Exam: Part 2

    Peter Mackey, head of exam development for the CFA Institute, shares his tips for passing the CFA level I, II and III exams.
  5. Personal Finance

    Risk Management Framework (RMF): An Overview

    A company must identify the type of risks it is taking, as well as measure, report on, and set systems in place to manage and limit, those risks.
  6. Trading

    Introduction To Level II Quotes

    Level II quotes show a ranked list of the best bid and ask prices from each market participant, providing detailed insight into a stock’s price action.
  7. Personal Finance

    What To Expect On The CFA Level II Exam

    This article will help you understand the nuances of the CFA Level II exam.
Frequently Asked Questions
  1. Depreciation Can Shield Taxes, Bolster Cash Flow

    Depreciation can be used as a tax-deductible expense to reduce tax costs, bolstering cash flow
  2. What schools did Warren Buffett attend on his way to getting his science and economics degrees?

    Learn how Warren Buffett became so successful through his attendance at multiple prestigious schools and his real-world experiences.
  3. How many attempts at each CFA exam is a candidate permitted?

    The CFA Institute allows an individual an unlimited amount of attempts at each examination.Although you can attempt the examination ...
  4. What's the average salary of a market research analyst?

    Learn about average stock market analyst salaries in the U.S. and different factors that affect salaries and overall levels ...
Trading Center