CAIA Cheat Sheet 2026

The 30 highest-yield CAIA facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. What does the Sharpe ratio measure? → Excess return per unit of total risk
2. Which approach is most effective for mastering due diligence in Chartered Alternative Investment Analyst Association? → Combining theoretical study with practical application and regular review
3. In Chartered Alternative Investment Analyst Association, why is structured products knowledge important for professional certification? → It demonstrates competence and ensures practitioners meet established standards
4. What is a best practice in Chartered Alternative Investment Analyst Association commodities? → A method or technique recognized as superior based on evidence and expert consensus
5. The Calmar Ratio measures risk-adjusted performance by dividing annualized return by: → Maximum drawdown
6. What is the primary objective of commodities in Chartered Alternative Investment Analyst Association? → To ensure competence and proficiency in core commodities concepts
7. In Chartered Alternative Investment Analyst Association, what role does continuing education play in due diligence? → To keep professionals current with evolving standards, technologies, and best practices
8. In Chartered Alternative Investment Analyst Association, why is performance measurement knowledge important for professional certification? → It demonstrates competence and ensures practitioners meet established standards
9. What is the primary objective of real assets in Chartered Alternative Investment Analyst Association? → To ensure competence and proficiency in core real assets concepts
10. Which of the following best describes a Interval Fund structure? → A fund that offers periodic but limited liquidity windows rather than daily redemptions
11. Which approach is most effective for mastering performance measurement in Chartered Alternative Investment Analyst Association? → Combining theoretical study with practical application and regular review
12. What is a best practice in Chartered Alternative Investment Analyst Association due diligence? → A method or technique recognized as superior based on evidence and expert consensus
13. What is the primary regulatory framework governing private fund advisers with over $150 million AUM in the United States? → Investment Advisers Act of 1940 with SEC registration
14. The process of detecting hazards and assessing the associated risk is called: → Risk assessment
15. For which type of alternative investment return distribution does the law of large numbers converge most slowly, making statistical inference most difficult? → Returns from strategies with fat tails and non-stationary parameters
16. Which statistical measure best captures 'fat tail' risk in alternative investment return distributions? → Kurtosis
17. What is the relationship between theory and practice in Chartered Alternative Investment Analyst Association real assets? → Theory provides the foundation and framework that guides effective practical application
18. Which risk measure addresses the main limitation of VaR by estimating the expected loss in the tail beyond the VaR threshold? → Expected Shortfall (CVaR)
19. A Real Estate Investment Trust (REIT) must distribute at least what percentage of taxable income to maintain its tax-advantaged status? → 90%
20. A separately managed account (SMA) in alternatives differs from a commingled fund primarily because: → SMAs give the investor direct ownership of the underlying assets
21. What is a best practice in Chartered Alternative Investment Analyst Association private equity? → A method or technique recognized as superior based on evidence and expert consensus
22. It is generally thought that an investor is fully diversified if she owns __ stocks. → 20
23. In Chartered Alternative Investment Analyst Association, what role does continuing education play in private equity? → To keep professionals current with evolving standards, technologies, and best practices
24. Which type of risk does diversification help to manage? → Specific
25. Value at Risk (VaR) at the 95% confidence level over a one-day horizon is best defined as: → The maximum loss at the 95% confidence level over one day
26. What does negative skewness in the distribution of hedge fund returns indicate? → The distribution has a long left tail with more extreme negative outcomes
27. What is the relationship between theory and practice in Chartered Alternative Investment Analyst Association professional standards? → Theory provides the foundation and framework that guides effective practical application
28. In Chartered Alternative Investment Analyst Association, why is professional standards knowledge important for professional certification? → It demonstrates competence and ensures practitioners meet established standards
29. In Chartered Alternative Investment Analyst Association, what role does continuing education play in structured products? → To keep professionals current with evolving standards, technologies, and best practices
30. Which vehicle allows accredited investors to gain exposure to private equity without the long lock-up of a traditional PE fund? → Interval fund investing in PE secondaries