Alternatives

Question 1

Calendar Spread (Backwardation)

Answer 1

Positive

Question 2

Insurance Theory

Answer 2

Backwardation, futures for insurance, producers

Question 3

Hedging Pressure Hypothesis

Answer 3

D producers > D users (Backwardation)

Question 4

Theory of storage

Answer 4

For consumers, cost, benefit and price afectados por supply and demand

Question 5

Roll return in backwardation

Answer 5

Positive, si market sube (aumenta el performance), outperfomed indices por roll return

Question 6

S&P GSCI

Answer 6

Contracts with min level of volume, better on trending markets por anual rebalance (menores costos)

Question 7

Bloomberg Commodity Index

Answer 7

Selection based, better on trending markets por anual rebalance (menores costos)

Question 8

Deutsche Bank LCI

Answer 8

Rolling attempts to maximize backwardation and minimize contango con anual rebalance

Question 9

Thompson Reuters Commodity Index

Answer 9

Fixed weight and monthly rebalance

Question 10

Rogers International Commodity Index

Answer 10

More important con markets frequently mean reverting, underperformed on trending markets por monthly rebalance

Question 11

Dedicated short

Answer 11

Leverage (low), volatility (high), b exposure (negative), correlation (negative), orientation (deep fundamental), valuation (absolute), position sizing (concentrated)

Question 12

Market Neutral

Answer 12

Leverage (high), volatility (low), b exposure (neutral), correlation (zero), orientation (quantitative), valuation (relative), position sizing (diverse)

Question 13

Long only

Answer 13

Leverage (low), volatility (high), b exposure (positive), correlation (positive), orientation (fundamental), valuation (absolute), position sizing (concentrated)

Question 14

Soft catalyst

Answer 14

Trade in aticipation

Question 15

Hard Catalyst

Answer 15

Trade in reaction (less risky)

Question 16

Income Approach

Answer 16

Consider growth and property value

Question 17

Going cap rate

Answer 17

Based on first year of ownership and used for initial annual CF

Question 18

Terminal cap rate

Answer 18

Based on expected income for the period after a sale of property

Question 19

Appraisal based index

Answer 19

understate correlation, overstate returns and understate volatility (overstate sharpe ratio)

Question 20

Transaction based

Answer 20

Econometric Techniques, more volatility, noise for statistical estimation

Question 21

Time series Momentum

Answer 21

More volatile returns and more sensitive to trends (directionality), Net long or Net short

Question 22

Cross sectional Momentum

Answer 22

Net zero market exposure during normal periods

Question 23

Hedgers

Answer 23

Eliminate price risk and tend to speculate

Question 24

Liquidity providers

Answer 24

Speculators of imbalances by supply and demand

Question 25

Arbitrageours

Answer 25

mispricing and storage facilities

Question 26

Equity strategies

Answer 26

Stock picking, bottom-up approach, liquid, tail risk, mark to market pricing

Question 27

Merger arbitrage

Answer 27

Liquid, b exposure, left tail risk, significant leverage, low volatility

Question 28

Distressed securities

Answer 28

High levels of illiquidity, mark to model, moderate to low leverage, high volatility

Question 29

Relative value strategies

Answer 29

Valuation of securities exposed to credit or liquidity risk, (mean reversion dependant), high leverage

Question 30

Fixed Income arbitrage

Answer 30

Liquidity in yield curve and carry trades (liquidity)

Question 31

Convertible bond arbitrage

Answer 31

Ganancia por cualquier movimiento en el precio de la acción, well on high issuance period

Question 32

Global Macro

Answer 32

Wide range of asset classes, focus on themes and regions, top down approach, fundamental discretionary, high volatility

Question 33

Managed features

Answer 33

Uncorrelated with stocks and bonds, systematic trading with a quantitative driven approach

Question 34

Opportunistic Strategies

Answer 34

Trendiness exposure, higly liquid, positive right tail skewness, high leverage

Question 35

Reinsurance

Answer 35

Uncorrelated with other asset clases, high premium incomes and sufficient loss reserves

Question 36

Life settlement

Answer 36

Uncorrelated with other asset clases

Question 37

FoF

Answer 37

Double fees, more diversification, less extreme exposure, lower volatility, uncorrelated strategies, less transparency, manager selection expertise y liquidity

Question 38

Multiestrategy

Answer 38

More variance, more leverage, faster tactical allocation, improved fee structure, less liquidity, operational risk and left tail blow up risk

Question 39

Volatility Trending

Answer 39

Long volatility positions, positive convexity, low leverage y negative realted with equity

Question 40

Industrial RE

Answer 40

Afectado por competencia directamente

Question 41

Retail RE

Answer 41

Afectado por consumo directamente

Question 42

Hospitality

Answer 42

Afectado por business confidence directamente

Question 43

Current lease review

Answer 43

propiedades 100% rentadas

Question 44

Cost approach

Answer 44

expense of building land and constructing a new property

Question 45

IFRS NAV

Answer 45

Cost model (GAAP) or fair value model