Assume that a manager has $10 million of funds to invest. The manager then borrows an additional $100 million at 4 percent interest and invests all of the funds at a 5 percent rate of return. What is the resulting rate of return of the portfolio?

An investor would like to ensure that a hedge fund manager does not receive an annual incentive fee unless the fund’s net asset value (NAV) at the end of the year exceeds the NAV at the beginning of the year. What term best describes this incentive structure provision?

During interventional procedures, high level control fluoroscopy is employed, resulting in a _________ than during standard fluoroscopy.

Consider the following table of monthly returns for a hedge fund and an index portfolio. For the purpose of computation, the hurdle rate is the U.S. T-bill rate, assumed to be 6 percent per year.                                                 RETURNS (%)                                      MONTH    Hedge Fund       INDEX January 3.5% 2.4% February 4.0% 3.0% March – 2.0% -1.6% April -2.0% -1.0% May 1.0% 0.2% June 1.0% 1.0% What is the arithmetic average rolling returns for the hedge fund if the investor’s investment horizon is four months?

For a given portfolio, having a Treynor measure greater than the market but a Sharpe measure that is less than the market would most likely indicate that the portfolio is:

The covariance between the return on a project and the market return is 0.64. The market returns have a standard deviation of 0.9. What is the project’s beta?

Consider the following table of monthly returns for a hedge fund and an index portfolio. For the purpose of computation, the hurdle rate is the U.S. T-bill rate, assumed to be 6 percent per year.           RETURNS (%)  MONTH    Hedge Fund       INDEX   January 3.5% 2.4% February 4.0% 3.0% March – 2.0% -1.6% April -2.0% -1.0% May 1.0% 0.2% June 1.0% 1.0% What is the Sortino ratio for the hedge fund?

A pension portfolio manager is about to upgrade his performance calculation software. Currently, his performance software will only calculate his performance on a quarterly basis. The quarterly performance numbers calculated on a money-weigh ted rate-of- return basis for the year 2017 are shown below. The portfolio benchmark has annual return of 4.2 percent and the market index has a return of 3.4 percent.            QUATER                 RETURN             1                               5.35%             2                               -2.34%             3                               4.62%             4                               1.25%   What is the return due to the portfolio manager’s style

Which one of the following statements concerning the primary market is correct?

Consider an US-based foundation with spending rate of 3 percent and cost of earning investment returns has averaged 50 basis points annually. The asset allocation and the set of capital market expectations are shown below.  The expected long-term inflation rate is 2.5 percent. Table 3 Capital Market Expectations Asset class E(ri) si Correlations A B C D A US equities 9% 18% 1       B Ex-US equities 8 14 0.60 1     C US bonds 4 8 0.30 0.20 1   D Real estate 1 7 0.50 0.40 0.10 1    Table 4 Corner portfolios Portfolio E(rp) sp Sp wi A B C D 1 9.0% 18.0% 0.39 100% 0% 0% 0% 2 7.9 16.7 0.35 65 35 0 0 3 7.5 15.4 0.38 37 53 0 10 4 5.0 12.4 0.36 0 25 43 32 5 4.6 10.1 0.32 0 11 55 34 What is the foundation return requirement in percent?