A. After reading CAIA chapter 1, please answer the following questions (11 points)

Please use your own wording to answer the questions.

1) Define the term "investment" and give two examples.

2) List four major types of real assets other than land and other types of real estate and give an example of each type.

3) List the 3 major types of alternative investments other than real assets in the CAIA curriculum.

4) Name and define the five structures that differentiate traditional and alternative investments.

5) Which of the five structures that differentiate traditional and alternative investments relates to the taxation of an instrument?

6) Name and define the four return characteristics that differentiate traditional and alternative investments.

7) Name and define the four major methods of analysis that distinguish alternative investments from traditional investments.

8) Describe an "incomplete market".

9) What does it mean if a market participant has asymmetrical information?

10) What is the risk caused by active management and describe the risk.

11) Are the terms "pure arbitrage" and "arbitrage" the same or different? If different, please explain their differences.