Which one is not the assumption of CAPM? O investors are risk averse. O all investors plan using the same time period. O investors have different expectations of security returns.Alternative investment funds are typically managed: O actively. to generate positive beta return. O assuming that markets are efficient.Which of following content is included in negative bond covenants. The issuer is: required to pay taxes as they come due. O prohibited from investing in risky projects. O required to maintain its current lines of business.Which of the following external credit enhancement has the least amount of third-party risk? O surety bond. letter of credit. O cash collateral account.Which of the following is most similar to a short position in the underlying asset? O Buying a put. O Writing a put. O Buying a call.A portfolio includes two assets. The portfolio's standard deviation equals to the weighted average mean ofthe two assels' standard deviation. The correlation of these two assets is closest to: O -1. O o. O 1. Risk management in the case of individuals is best described as concerned with: O hedging risk exposures. O maximizing utility while bearing a tolerable level of risk. O maximizing utility while avoiding exposure to undesirable risks.An investor primarily invests in stocks of publicly traded companies. The investor wants to increase the diversification of his portfolio. A friend has recommended investing in real estate properties. The purchase of real estate would best be characterized as a transaction in the: O derivative investment market. O traditional investment market. O alternative investment market.Which one is not the systematic risk? new drug development test. the change of inflation rate. O The change of bank reserve rate.A hedge fund holds its excess cash in 90day commercial paper and negotiable certicates of deposit. The cash management policy of the hedge fund is best described as using: C) capital market instruments. Q money market instruments. 0 interrnediateten'n debt instruments