High-water marks are typically used when calculating the incentive fee on hedge funds. They are most likely used by clients to:
Avoid prime brokerage fees.
B. Claw back the management fees.
C. Prevent paying twice for the same performance.
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Christina Ng, a Level I CFA candidate, defaulted on a bank loan she obtained to pay for her Masters degree tuition when her wedding cost more than expected. A micro finance loan company lent her money
A. No
B. Yes,with regard to the first loan default
C. Yes,with regard to the second loan default
A return-generating model that provides an estimate of the expected return of a security based on factors such as earnings growth and cash flow generation is best described as a:
A. Market factor model.
B. Fundamental factor model.
C. Macroeconomic factor model.
An accounting document that records transactions in the order in which they occur is best described as a:
A. Trial balance.
B. General ledger.
C. General journal.
Equity return series are best described as, for the most part:
A. platykurtotic(less peaked than a normal distribution).
B. leptokurtotic(more peaked than a normal distribution).
C. mesokurtotic(identical to the normal distribution in peakedness).