1. In private equity investing, the amount of investors' funds provided is known as:

A. Committed capital.

B. Designated capital.

C. Drawn down capital.

2. The potential benefits of commodity investing is:

A. Low price volatility, which results in high Sharpe ratios.

B. Higher returns on commodities compared to global equities and bonds.

C. Providing portfolio diversification due to low correlation of commodities returns with global equities and bonds.

3. Which of the following is LEAST LIKELY to be a hedge fund valuation issue?

A. Only annual valuation of hedge fund position.

B. Use of estimated values for illiquid or non-traded instruments.

C. Different practices as to which market price or quote to use for valuation.

4. A common fee structure for funds of fund is "1 and 10". This means:

A. 1% management fee and a 10% incentive fee.

B. 1% management fee and a 10% front end load.

C. 1% management fee and a 10% hard hurdle rate.

5. Alternative investment returns tend to be:

A. Leptokurtic.

B. Positively skewed.

C. Symmetrical.