a)Answer questions at the end of the CAIA chapter (10 points)

)How do you determine a risky investment?

2)Are equities a low risk investment?

3)Do you perceive investment components as standalone investments or compliments to the portfolio?

How investors define a risky investment varies Perception and Perspective Risk tolerance = how one defines risk Needs/ Goals / time duration of investment How is it risky? How does the investment impact a portfolio?

1)What is the wrong question to ask about alternative investments?

2)What is the proper question to ask about alternative investments?

3)Which strategies are good for diversification and why?

4)Which strategies are not good diversifiers and why?