CIMA Alternative Investments 3

Question 1

An investor in a private equity fund is said to be in the 'blind pool' stage when:

Accepted Answer

Capital is committed before specific investments are identified

Answer

The fund has fully deployed all committed capital

Answer

All portfolio companies have been exited

Answer

The fund manager has disclosed all target acquisitions in the prospectus

Question 2

Which metric is most commonly used to evaluate private equity fund performance net of fees?

Accepted Answer

Internal Rate of Return (IRR)

Answer

Sharpe Ratio

Answer

Alpha vs. S&P 500

Answer

Treynor Ratio

Question 3

In the context of managed futures, a trend-following CTA strategy generates returns primarily by:

Accepted Answer

Taking positions aligned with persistent price trends in futures markets

Answer

Buying undervalued futures contracts and selling overvalued ones simultaneously

Answer

Holding only short futures positions to hedge equity exposure

Answer

Arbitraging price differences between spot and futures prices

Question 4

Which type of real estate investment trust (REIT) directly owns and operates income-producing properties?

Accepted Answer

Equity REIT

Answer

Mortgage REIT

Answer

Hybrid REIT

Answer

Private REIT

Question 5

A CIMA professional discussing liquidity risk with a client regarding hedge funds should note that lock-up periods:

Accepted Answer

Restrict investor redemptions for a specified initial period after investment

Answer

Guarantee a minimum return over the lock-up duration

Answer

Allow daily redemptions regardless of fund strategy

Answer

Are required by the SEC for all registered investment companies

Question 6

Infrastructure investments are often attractive to institutional investors because they typically offer:

Accepted Answer

Long-duration, inflation-linked cash flows with low correlation to equities

Answer

Short holding periods and high daily liquidity

Answer

Equity-like volatility with bond-like returns

Answer

Zero regulatory oversight and unlimited leverage