CSC2 Practice Questions

A.  

They compare the intrinsic value against a security’s current price.

B.  

They are nullified a according to the random walk theory.

C.  

They are used to predict changes in security prices.

D.  

They study the causes of security’ s price movements.

A.  

The period that the hedge fund manager is forced to unwind all its investment positions.

B.  

The period that existing investors in the hedge fund can redeem their shares.

C.  

The period that non-accredited investors can enter a hedge fund by purchasing newly issued shares.

D.  

The period that a hedge fund is expected to cover its short positions.

A.  

25 basis points

B.  

75 basis points

C.  

50 basis points

D.  

100 basis points.

A.  

It is unavailable with certain asset classes like segregated fundi

B.  

ESG factors are standardized across the investment no industry.

C.  

A combination of a values and valuation-based approach to investing

D.  

It bases investment decisions exclusively on environmental factors.

A.  

Adherence to maximum exposure limits for short selling

B.  

Purchases of no more than 20% of the net assets in the securities of a single issuer

C.  

Limit of no more than 30% on purchases of net assets in companies engaged in the same industry

D.  

No purchases of shares in the manager ' s own company allowed

A.  

Beta

B.  

Standard Deviation.

C.  

Correlation.

D.  

Alpha

A.  

Rules-based

B.  

Synthetic.

C.  

Sampling

D.  

Full replication

A.  

Information technology.

B.  

Research.

C.  

Compliance.

D.  

Corporate treasury.

A.  

Ex-ante

B.  

Nominal

C.  

Ex-post

D.  

Real

A.  

The management fee

B.  

The total value of all units within the fund

C.  

The investment exposure.

D.  

The market price and bid-ask spread.