50a. Compare alternative investments with traditional investments.
alternative investments
特性：
categories of alternative investments
1)hedge funds
2)private equity funds
3)real estate
4)commodities
5)infrastructure
- other
50b. Describe hedge funds, private equity,real estate,commodities, infrastructure, and other alternative investments, including strategies, sub-categories,potential benefits and risks, fee structures and due diligence.
50e. Describe issues in valuing and calculating returns on hedge fund, pricate equity,real estate, commodities and infrastructure.
Private equity strategies
leveraged buyouts(LBOs）
mezzanine financing
mangement buyouts(MBOs)
mangement buy-ins(MBIs)
developmental capital
minority equity investing
private investment in public equities(PIPEs)
venture capital (VC)
portfolio companies
the formative stage -3 distinct phases - angel investing
- seed stage
- early stage
2.later stage
3.mezzanine-stage financing
Private equity structure and fees
committed capital
clawback
Private equity exit strategies
trade sale
IPO
recapitalization
secondary sale
write-off/ liquidation
Private equity potential benefits and risks
Due diligence
market/comparable approach
discounted cash flow approach
asset-based approach
Real Estate
residential property
commercial real estate
real estate investment trusts(REITs)
Potential benefits and risks of real estate
appraisal index
repeat sales index
REITs indices
Real estate investment due diligence
distressed properties
Real estate Valuation
comparable sales approach
income approach
cost approach
Hedge Funds
prime brokers
absolute basis
relative basis
lockup period
notice period
fund-of-funds
Hedge fund strategies
1)event-driven strategies
merger arbitrage
distresses/ restructuring
activist shareholder
special situations
2)Relative value strategies
convertible arbitrage fixed income
asset-backed fixed income
general fixed income
volatility
multi-strategy
3)macro strategies
4)Equity hedge fund strategies
market neutral
fundamental growth
fundamental value
quantitative directional
short bias
Potential benefits and risks
Due diligence
Valuation
Commodities
Exchange-traded funds
equities that are directly linked to a commodity
managed futures funds
individual managed accounts
specialized funds in specific commodity sectors
Potential Benefits and risks of commodities
Commodity prices and investments
Commodity Valuation
convenience yield
contango/backwardation
3 sources of commodities futures returns:
roll yield
collateral yield
change in spot prices
Infrastructure
infrastructure investment
brownfield investment
greenfield investment
Other alternative investments
50c.Describe potential benefits of alternative investments in the context of portfolio management.
50d. Describe,calculate and interpret management and incentive fees and net-of-fees returns to hedge funds.
management fee
incentive fee
hurdle rate
high water mark
50f. Describe risk management of alternative investments
value at risk(VaR)
sortino ratio
Due diligence
1.organization
2.portfolio management
3.operations and controls
- risk management
- legal review
- fund terms
Reading 51. Portfolio management: an overview
51a. Describe the portfolio approach to investing.
portfolio perspective
51b. Describe the steps in the portfolio management process.
1)planning step
- execution step
- feedback step
51c. Describe types of investors and distinctive characteristics and needs of each.
individual investors
institutions
endowment
foundation
insurance companies
investment companies
mutual funds
sovereign wealth funds
51d. Describe defined contribution and defined benefit pension plans.
defined contribution pension plan
defined benefit pension plan
51e. Describe aspects of asset management industry.
buy-sell firms
sell-side firms
full-service asset managers
specialist asset managers
multi-boutique firm
active management
passive management
smart beta
robo-advisors
51f. Describe mutual funds and compare them with other pooled investment products.
mutual funds
no-load funds
load funds
Types of mutual funds
money market funds
bond mutual funds
stock mutual funds
index funds
Other forms of pooled investment
exchange-traded funds
separately managed account
private equity
venture capital
Reading 52. Portfolio Risk and Return part1
52a. Calculate and interpret major return measures and describe their appropriate uses.
holding period return
Average returns
pretax nominal return
after-tax nominal return
real return
leveraged return
52b.Compare the money-weighted and time-weighted rates of return and evaluate the performance of portfolios
money-weighted
time-weighted rates
52c. Describe characteristics of major asset classes that investors consider in forming portfolios.
52d. Calculate and interpret the mean, variance, covariance (or correlation) of asset returns based on historical data.
52e.Explain risk aversion and its implications for portfolio selection.
risk-averse
risk-seeking
risk-neutral
52f. Calculate and interpret portfolio standard deviation.
52g. Describe the effect on a portfolio's risk of investing in assets that are less than perfectly correlated.
52h. Describe and interpret the minimum-variance and efficient frontiers of risky assets and the global minimum-variance portfolio.
minimum-variance portfolios
minimum-variance frontier
efficient frontier
global minimum-variance portfolio
utility function
indifference curve
risk-averse investor's indifference curves
risk aversion coefficient
two-fund separation theorem
capital allocation line
Reading 53: Portfolio risk and return: part2
53a. Describe the implications of combining a risk-free asset with a portfolio of risky assets.
53b. Explain the capital allocation line(CAL) and the capital market line(CML).
capital allocation line(CAL)
capital market line(CML)
market risk premium
passive investment strategy
active portfolio management
53c.Explain systematic and nonsystematic risk, including why an investor should not expect to receive additional return for bearing nonsystematic risk.
unsystematic risk
systematic risk
total risk=systematic risk +unsystematic risk
Systematic Risk is relevant in portfolios
53d. Explain return generating models( including the market model) and their uses.
Return generating models
Multifactor models
factor sensitivity/ factor loading
single-index model
market model
53e. Calculate and interpret beta
53f. Explain the capital asset pricing model (CAPM), including its assumptions, and the security market line(SML).
53g. Calculate and interpret the expected return of an asset using the CAPM.
assumptions of CAPM
Comparing the CML and SML
53h. Describe and demonstrate applications of CAPM and SML
53i. Calculate and interpret the Sharpe ratio, Treynor ratio,M2 and Jensen's alpha.
Performance evaluation
attribution analysis
sharpe ratio
risk-adjusted performance(RAP)
Treynor measure
Jensen's alpha
