(C) Question 9 (3 minutes / points) Which of the following statements is CORRECT? (A) Active asset managers try to beat the benchmark while passive asset managers aim to achieve the same return than the benchmark Passive asset managers what to achieve a lower return than the benchmark while active asset managers want to achieve the same return than the benchmark (C) Active and passive asset managers want to achieve the same return than the benchmark, but the active managers with lower volatility. (D) Active asset managers have aim to have a lower volatility than passive asset managers. the fact that Venture Capital should provide a premium to average returns given the liquidity of the asset class in comparison to traditional asset classes (equities, foxed income or currencies), Venture Capital targets a superior return. This is due to the Tact that Venture Capital should provide a premium to average returns given the liquidity of the asset class in comparison to traditional asset classes (equities, fixed income or currencies), Venture Capital targets a superior return at lower risk levels. This is due to the fact that Venture Capital should provide a premium to average returns given the illiquidity of the asset class (D) Question 10 (3 minutes / points) What type of index constructions do exist? (A) Cap-weighted and equally-weighted indices. (B) Single-factor and multi-factor indices (6) Total return and prices indices (D) All of the above is true. Question 14 (3 minutes / points): What is a potential risk when investing in patents? (A) Lack of liquidity in patent markets makes it difficult to monetize patents. (B) A new technology can render a patent worthless (C) Investors rely on the cash flows generated by the patent. Operational risk can have a negative impact on these cash flows. D) Answers (A). (B) and (C) are all correct. Question 11(3 minutes / points) What behaviour would you expect from a hedge fund? (A) Returns depended on the market movements. (B) A lower return than the benchmark in case of a downward trending market (C) Returns strongly negative correlated with the benchmark (D) None of the above is true. Question 15 (3 minutes / points): Regarding "Managed Futures", what is true about systematic strategies and discretionary strategies? (A) Discretionary Managed Futures strategies trade on long-term fundamentals and short-term information. They limit themselves to the global futures markets. (B) Systematic analysis allows Systematic Managed Futures managers to follow and trade in more individual markets, and handle portiolos wit more individual positions Systematic Managed Futures strategies are based on proprietary models with particular trading techniques such as trend following. + (D) All of the above is true. Question 12 (3 minutes / points) What strategies can a global macro hedge fund apply? (A) Any strategy possible. (B) Only long positions. (C) More short than long positions. (D) More long than short positions. Question 13 (3 minutes / points): What is TRUE about the returns for Venture Capital investing? (A) in comparison to traditional asset classes (equities, fixed income or currencies), Venture Capital targets a lower retum. This is due to the fact that Venture Capital should provide a premium to average returns given the illiquidity of the asset class. (B) in comparison to traditional asset classes (equities, fixed income or currencies). Venture Capital targets a superior risk levels. This is due to Question 16 (3 minutes / points): In asset management nowadays, the statement what used to be alpha is now beta . (A) ... is justified, see the smart beta approach to asset management. (B) .. is wrong, see the nowadays questioned beta approach to asset management (C) ... has no meaning (D) ... only holds in crisis times
