Alternative Investment Performance and Returns — Flashcards

Alternative Investment Performance and Returns CFA Flashcards - Medical Study Cards

Master Alternative Investment Performance and Returns with Oncourse flashcards. These spaced repetition flashcards are designed for medical students preparing for NEET PG, USMLE Step 1, USMLE Step 2, MBBS exams, and other medical licensing examinations.

Alternative Investment Performance and Returns Flashcard Deck - 10 Cards

Flashcard 1: In Alternative Investments (Performance & Returns), what defines a Level 1 asset in the fair value hierarchy?

Answer: Assets that trade in active markets and have quoted prices readily available (e.g., exchange-traded securities).

Flashcard 2: In Alternative Investments (Performance & Returns), what is the "multiple of invested capital" (money multiple)?

Answer: The ratio of total capital returned plus the value of remaining assets to the total capital paid in over the life of the investment.

Flashcard 3: In Alternative Investments (Performance & Returns), what is the formula to state the effect of leverage on an alternative investment's rate of return?

Answer: \[\text{Leveraged Return} = \frac{r(V_0 + V_B) - r_B V_B}{V_0}\] Where \(r\) is the unleveraged return, \(V_0\) is the initial portfolio value, \(V_B\) is the borrowed amount, and \(r_B\) is the borrowing rate.

Flashcard 4: In Alternative Investments (Performance & Returns), what defines a Level 3 asset in the fair value hierarchy?

Answer: Assets that require unobservable inputs to establish a fair value (e.g., real estate or private equity with few market transactions).

Flashcard 5: In Alternative Investments (Performance & Returns), what is survivorship bias in the context of alternative investment index returns?

Answer: The upward bias in index returns caused by the exclusion of failed funds from the database.

Flashcard 6: In Alternative Investments (Performance & Returns), what is a "lockup period"?

Answer: The time after initial investment over which limited partners either cannot request redemptions or incur significant fees for doing so.

Flashcard 7: In Alternative Investments (Performance & Returns), what is the "J-curve effect"?

Answer: The tendency of private funds to exhibit negative returns during the initial capital commitment/deployment phases, followed by increasing returns in the distribution phase.

Flashcard 8: In Alternative Investments (Performance & Returns), what defines a Level 2 asset in the fair value hierarchy?

Answer: Assets that do not have readily available quoted prices but can be valued based on directly or indirectly observable inputs.

Flashcard 9: In Alternative Investments (Performance & Returns), why is the Internal Rate of Return (IRR) the most appropriate measure for after-tax investment performance of a private fund?

Answer: Because the fund manager controls the timing and magnitude of cash inflows and outflows (capital calls and distributions).

Flashcard 10: In Alternative Investments (Performance & Returns), what are "founders class shares"?

Answer: Investment interests granted to early investors in a fund that offer lower fees or better liquidity terms as an incentive to invest at inception.

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Management fees, performance fees and hurdle rates

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Performance appraisal of alternative investments

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About Alternative Investment Performance and Returns Flashcards for CFA

These Alternative Investment Performance and Returns flashcards are designed for CFA Alternative Investments (Level I) preparation, using active recall to help you retain high-yield concepts, clinical correlations, and commonly tested facts. Each card prompts you to retrieve information from memory rather than passively reviewing notes, which research shows leads to significantly better exam performance.

The 12 cards in this deck cover the most important topics in Alternative Investment Performance and Returns, including key mechanisms, diagnostic criteria, treatment protocols, and clinical pearls that frequently appear in CFA examinations. Cards are organised by chapter so you can focus on specific areas or work through the entire topic systematically.

For personalised spaced repetition scheduling that adapts to your performance, unlimited flashcards, and detailed progress analytics, download the Oncourse app.

Frequently Asked Questions

Are Alternative Investment Performance and Returns flashcards free on Oncourse?

Yes, completely free. You can study all 12 Alternative Investment Performance and Returns flashcards on this page at no cost. For spaced repetition scheduling and progress tracking, download the Oncourse app.

How do flashcards help with CFA preparation?

Flashcards use active recall — instead of passively re-reading notes, you retrieve information from memory. Research shows this builds stronger, longer-lasting memories and is one of the most effective study strategies for medical exams like CFA.

How many Alternative Investment Performance and Returns flashcards are available?

There are currently 12 flashcards for Alternative Investment Performance and Returns under Alternative Investments (Level I), organised by chapter. New cards are added regularly to cover the latest CFA syllabus.

Can I study Alternative Investment Performance and Returns flashcards by chapter?

Yes. The flashcards are organised by chapter so you can focus on specific areas or work through the entire topic systematically. Scroll down to the "Study by Chapter" section to pick a chapter.

What topics do these Alternative Investments (Level I) flashcards cover?

The cards cover high-yield concepts, clinical correlations, diagnostic criteria, treatment protocols, and commonly tested facts from Alternative Investment Performance and Returns. They mirror the depth and style of CFA questions.

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