Mezzanine financing is capital provided a for major

104. Mezzanine financing is capital provided:
A. for major expansion.
B. to prepare for an IPO.
C. to initiate commercial manufacturing.
105. During periods of financial crises, the correlation between hedge funds and
financial market performances may:
106. The four broad categories of hedge fund strategies identified by HFRI are:
107. For venture capital investing, later stage financing is the capital provided for a
company:
108. Which of the following is a suitable risk return measure for an analyst wanting to
asses the downside risk of an alternative investment?
A. Sharpe ratio
B. Sortino ratio
C. Standard deviation.

Level I of CFA ® Program Mock Exam 1 – Questions (AM)
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109. Jerry invested $11.25 m in EV Fund of funds (EVFOF) that invested the money
with Tsar Hedge Fund (THF). EV FOF and THF have “1 & 10” and “2 & 20” fee
structures respectively. Management fees are calculated using beginning of period
capital and both management and incentive fees are computed independently.
THF earned 17% annual return before management and incentive fees. Based on
the data provided, net of fees return to Jerry is closest to:
110. The returns of which type of investments rely to a great extent on manager skills?

Level I of CFA ® Program Mock Exam 1 – Questions (AM)
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Questions 111 through 120 relate to Portfolio Management
111. The type of chart drawn on a grid, which consists of column X’s alternating with
column O’s and does not represent time or volume is most likely the:
112. Which of the following quantifies and allocates the tolerable risk by specific
metrics?
A. Risk tolerance
B. Risk Budgeting
C. Enterprise risk management
113. When an investor’s ability to take risk is above average but willingness is below
average, the investor’s risk tolerance is