Question 1

A blue-sky company is one that:

Accepted Answer

A)  only invests in environmentally friendly private equity projects 
B)  only invests in any promising private equity project 
C)  promises a lot but does not do much 
D)  promises a lot and achieves to fulfill its promises 
A)  only invests in environmentally friendly private equity projects 
B)  only invests in any promising private equity project 
C)  promises a lot but does not do much 
D)  promises a lot and achieves to fulfill its promises C

Question 2

Which type of hedge fund examines relationships between global markets to find relationships that do not conform with economic theory?

Accepted Answer

A)  event-driven 
B)  global macro markets 
C)  emerging markets 
D)  hedge fund-of-funds 
A)  event-driven 
B)  global macro markets 
C)  emerging markets 
D)  hedge fund-of-funds B

Question 3

At which funding round does the business appear to have a good product but it is not generating sufficient income?

Accepted Answer

A)  start-up capital 
B)  development capital 
C)  expansion capital 
D)  exit 
A)  start-up capital 
B)  development capital 
C)  expansion capital 
D)  exit B

Question 4

Venture capitalists are rarely involved in the governance and management of a venture that they finance.

Accepted Answer

A) True 
 B)False

Question 5

Over the period,the average annual return on the hedge fund index was p.a. ,which is better than the average annual return on the world index of 10.8% p.a. ,but worse than Australia at p.a.and worse than the emerging market index at 20% p.a.

Accepted Answer

A)  $ 13.2 \%, 16.1 $ 
B)  $ 15.5 \%, 18 \% $ 
C)  $ 14.6 \%, 18 \% $ 
D)  $ 13.2 \%, 17 \% $ 
A)  $ 13.2 \%, 16.1 $ 
B)  $ 15.5 \%, 18 \% $ 
C)  $ 14.6 \%, 18 \% $ 
D)  $ 13.2 \%, 17 \% $

Question 6

Once a business is at the stage of the IPO,how much does the lead venture capitalist,on average,hold of the firm?

Accepted Answer

A)  $ 7-10 \% $ 
B)  $ 12-15 \% $ 
C)  $ 14-17 \% $ 
D)  $ 20-24 \% $ 
A)  $ 7-10 \% $ 
B)  $ 12-15 \% $ 
C)  $ 14-17 \% $ 
D)  $ 20-24 \% $

Question 7

Hedge funds tend to be characterised by:

Accepted Answer

A)  low level of fees and restricted investor access 
B)  medium level of fees and restricted investor access 
C)  high level of fees and restricted investor access 
D)  medium level of fees and unrestricted investor access 
A)  low level of fees and restricted investor access 
B)  medium level of fees and restricted investor access 
C)  high level of fees and restricted investor access 
D)  medium level of fees and unrestricted investor access

Question 8

Entrepreneurs are humans,but they do not suffer from arrogance and insolence.

Accepted Answer

A) True 
 B)False

Question 9

The investment strategy of a hedge fund is to invest in:

Accepted Answer

A)  certain securities, that are different from those found in traditional mutual-style funds 
B)  certain securities, that are different from those found in traditional property funds 
C)  certain securities, that are different from those found in traditional trust funds 
D)  derivative contracts 
A)  certain securities, that are different from those found in traditional mutual-style funds 
B)  certain securities, that are different from those found in traditional property funds 
C)  certain securities, that are different from those found in traditional trust funds 
D)  derivative contracts

Question 10

The range of businesses in which private equity is held tends to be concentrated in:

Accepted Answer

A)  services 
B)  retail and wholesale 
C)  the manufacturing sector 
D)  all of the above 
A)  services 
B)  retail and wholesale 
C)  the manufacturing sector 
D)  all of the above

Question 11

Private equity is usually sourced from a few select wealthy individuals or specialist funds who are willing to contribute a relatively large proportion of the capital required to propel the business forward.

Accepted Answer

A) True 
 B)False

Question 12

Which type of fund has the objective to establish an overall position that is uncorrelated with traditional asset classes?

Accepted Answer

A)  event-driven 
B)  global macro markets 
C)  emerging markets 
D)  hedge fund-of-funds 
A)  event-driven 
B)  global macro markets 
C)  emerging markets 
D)  hedge fund-of-funds

Question 13

Moskowitz and Vissing-Jørgensen (2002)estimate that,for those households that hold private equity,that investment represents 41% of household wealth.

Accepted Answer

A) True 
 B)False

Question 14

The angel stage of investing is never associated with other cash streams,such as government grants,industry grants and university seed funding.

Accepted Answer

A) True 
 B)False

Question 15

Several studies into returns from venture capital funds have generally supported the notion of high returns.What arithmetic return on financing rounds to IPO did Cochrane (2005)report?

Accepted Answer

A)  $ 30.5 \% $ 
B)  $ 698 \% $ 
C)  $ 350 \% $ 
D)  $ 498 \% $ 
A)  $ 30.5 \% $ 
B)  $ 698 \% $ 
C)  $ 350 \% $ 
D)  $ 498 \% $

Question 16

After five years post listing,non-venture-backed IPOs earn a cumulative return of:

Accepted Answer

A)  $ 16 \% $ 
B)  $ 23 \% $ 
C)  $ 39 \% $
D $ 45 \% $ 
A)  $ 16 \% $ 
B)  $ 23 \% $ 
C)  $ 39 \% $
D $ 45 \% $

Question 17

Guo,Lev and Zhou (2005)find that several factors play an important role in the success of a venture capital.How much of the IPO pricing can these factors explain?

Accepted Answer

A)  $ 10-14 \% $ 
B)  $ 20-30 \% $ 
C)  $ 60-80 \% $ 
D)  $ 85-90 \% $ 
A)  $ 10-14 \% $ 
B)  $ 20-30 \% $ 
C)  $ 60-80 \% $ 
D)  $ 85-90 \% $

Question 18

After five years post listing,venture-backed IPOs earn a cumulative return of:

Accepted Answer

A)  $ 16 \% $ 
B)  $ 23 \% $ 
C)  $ 39 \% $ 
D)  $ 45 \% $ 
A)  $ 16 \% $ 
B)  $ 23 \% $ 
C)  $ 39 \% $ 
D)  $ 45 \% $

Question 19

Once a business is at the stage of the IPO,how much do the venture capitalists,on average,hold of the firm?

Accepted Answer

A)  $ 5-10 \% $ 
B)  $ 12-15 \% $ 
C)  $ 20-35 \% $ 
D)  $ 30-40 \% $ 
A)  $ 5-10 \% $ 
B)  $ 12-15 \% $ 
C)  $ 20-35 \% $ 
D)  $ 30-40 \% $

Question 20

Which type of hedge fund may monitor the futures and spot markets to identify situations when prices in the two markets depart from the cost-of-carry model?

Accepted Answer

A)  long -short equity 
B)  arbitrage 
C)  event-driven 
D)  global macro markets 
A)  long -short equity 
B)  arbitrage 
C)  event-driven 
D)  global macro markets

A blue-sky company is one that:

Which type of hedge fund examines relationships between global markets to find relationships that do not conform with economic theory?

At which funding round does the business appear to have a good product but it is not generating sufficient income?

Venture capitalists are rarely involved in the governance and management of a venture that they finance.

Over the period,the average annual return on the hedge fund index was p.a. ,which is better than the average annual return on the world index of 10.8% p.a. ,but worse than Australia at p.a.and worse than the emerging market index at 20% p.a.

Once a business is at the stage of the IPO,how much does the lead venture capitalist,on average,hold of the firm?

Hedge funds tend to be characterised by:

Entrepreneurs are humans,but they do not suffer from arrogance and insolence.

The investment strategy of a hedge fund is to invest in:

The range of businesses in which private equity is held tends to be concentrated in:

Private equity is usually sourced from a few select wealthy individuals or specialist funds who are willing to contribute a relatively large proportion of the capital required to propel the business forward.

Which type of fund has the objective to establish an overall position that is uncorrelated with traditional asset classes?

Moskowitz and Vissing-Jørgensen (2002)estimate that,for those households that hold private equity,that investment represents 41% of household wealth.

The angel stage of investing is never associated with other cash streams,such as government grants,industry grants and university seed funding.

Several studies into returns from venture capital funds have generally supported the notion of high returns.What arithmetic return on financing rounds to IPO did Cochrane (2005)report?

After five years post listing,non-venture-backed IPOs earn a cumulative return of:

Guo,Lev and Zhou (2005)find that several factors play an important role in the success of a venture capital.How much of the IPO pricing can these factors explain?

After five years post listing,venture-backed IPOs earn a cumulative return of:

Once a business is at the stage of the IPO,how much do the venture capitalists,on average,hold of the firm?

Which type of hedge fund may monitor the futures and spot markets to identify situations when prices in the two markets depart from the cost-of-carry model?

The Investment Decision

Australian Financial Markets

The International Investment Environment

Financial Management: Derivative Instruments and Information Sources

Money Market Securities

Bonds

Investor Preferences and Portfolio Concepts

Risky Asset Pricing Models and the Capm

Alternative Risky Asset Pricing Models

Concepts and Applications of Market Efficiency

Equity Valuation Models

Macro- and Industry Analysis of Share Markets

Qualitative Stock Selection

Quantitative Company Analysis

Futures and Forward Contracts

Option Contracts

Advanced Issues in Options

Portfolio Management

Performance Evaluation of Managed Funds

Filters

Exam 18: Alternative Investments

A blue-sky company is one that:

Which type of hedge fund examines relationships between global markets to find relationships that do not conform with economic theory?

At which funding round does the business appear to have a good product but it is not generating sufficient income?

Venture capitalists are rarely involved in the governance and management of a venture that they finance.

Over the period,the average annual return on the hedge fund index was p.a. ,which is better than the average annual return on the world index of 10.8% p.a. ,but worse than Australia at p.a.and worse than the emerging market index at 20% p.a.

Once a business is at the stage of the IPO,how much does the lead venture capitalist,on average,hold of the firm?

Hedge funds tend to be characterised by:

Entrepreneurs are humans,but they do not suffer from arrogance and insolence.

The investment strategy of a hedge fund is to invest in:

The range of businesses in which private equity is held tends to be concentrated in:

Private equity is usually sourced from a few select wealthy individuals or specialist funds who are willing to contribute a relatively large proportion of the capital required to propel the business forward.

Which type of fund has the objective to establish an overall position that is uncorrelated with traditional asset classes?

Moskowitz and Vissing-Jørgensen (2002)estimate that,for those households that hold private equity,that investment represents 41% of household wealth.

The angel stage of investing is never associated with other cash streams,such as government grants,industry grants and university seed funding.

Several studies into returns from venture capital funds have generally supported the notion of high returns.What arithmetic return on financing rounds to IPO did Cochrane (2005)report?

After five years post listing,non-venture-backed IPOs earn a cumulative return of:

Guo,Lev and Zhou (2005)find that several factors play an important role in the success of a venture capital.How much of the IPO pricing can these factors explain?

After five years post listing,venture-backed IPOs earn a cumulative return of:

Once a business is at the stage of the IPO,how much do the venture capitalists,on average,hold of the firm?

Which type of hedge fund may monitor the futures and spot markets to identify situations when prices in the two markets depart from the cost-of-carry model?

The Investment Decision

Australian Financial Markets

The International Investment Environment

Financial Management: Derivative Instruments and Information Sources

Money Market Securities

Bonds

Investor Preferences and Portfolio Concepts

Risky Asset Pricing Models and the Capm

Alternative Risky Asset Pricing Models

Concepts and Applications of Market Efficiency

Equity Valuation Models

Macro- and Industry Analysis of Share Markets

Qualitative Stock Selection

Quantitative Company Analysis

Futures and Forward Contracts

Option Contracts

Advanced Issues in Options

Portfolio Management

Performance Evaluation of Managed Funds

Filters