6 simple tips to keep in mind during your CFA Exam to score more in the Alternative Investments section.

1. Hi Gue st ( Lo gin) Abo ut Media Co ntact Search +1 34 7 6 4 7 9 0 0 1
Ho me Co urses My Acco unt Do wnlo ads Blo g Fo rum
Blog
Search to pics, articles, categro ies and much mo re. Se arch Abo ut t he Aut ho r
Prist ine
Pristine is India’s largest training
Latest Posts provider for international
certifications like CFA®, FRM®, PRM®. It
has been found by industry professionals
6 tips to Score 70%+ in Alternative Investments who have worked in the area of investment
7 banking and private equity.
No vember 28 th, 20 12 Co mments ( 0 )
Tags alternative investments CFA cfa tips exam tips tips
Dear CFA Level –I Candidate, Once again, Team Pristine would like to thank all of you who are following this email id Subscribe
series. The Commandments and Sins of CFA Level I is a huge success because of you!
Last week we have covered Quantitative Methods which is a friend to some and a foe to most others!
FREE 10 days Se e
CFA trial course D e t ails
In this session, we will cover the important points of a topic which most people find most easy in the CFA Level
I exam – Alternative Investments. This topic covers a very small weight of just 3%. However, this topic is
considered “Comfort Food” to most candidates.
Let’s take a look at the Commandments and Sins of Alternative Investments!
1. NEVER consider depreciation and financing costs for calculating the NOI. Also, the only taxes relevant for
this calculation are property taxes (not the investor’s tax).
2. Between MF’s and ETFs, ETF’s are clearly the best (due to in- kind creation and redemption). Hence, don’t
waste too much time studying the disadvantages of ETFs.
3. Be sure to remember the advantages and disadvantages of High Watermark Provision and Fund of Funds.
They are highly testable.
PDFmyURL.com

2. 4. The Hedge Fund Return Reporting Biases are very important. Understand the biases through diagrams Po pular Po st s
(stick figures for fund managers, squares for funds, and graph depicting fund performances). CFA fro m ICFAI (India) Vs CFA fro m CFAI
5. Remember the three components of Total Return on a Commodities Investment = Collateral Yield +Price (US)
Return + Roll Yield CFA v/s FRM
6. Unlike Equity Funds, a Commodity Index Strategy is NOT a passive strategy. The index comprises of not CFA Results
just Commodities but their Futures and Collateral. It is active because you need to roll over futures positions CFA Planner
and reinvest in T.Bills (collateral) that have matured.
FRM Co urse Planner
We hope that the above points were useful for your preparation. We will send you such useful information
before the exam. If you want to know about a particular topic please write to us at help@edupristine.com.
All Cat e go rie s
You can get some useful downloads on FRA at http://www.edupristine.com/ca/downloads/cfa/
Career in Finance
You can also buy some recordings for the topic of your choice at Chartered Financial Analyst (CFA)
http://www.edupristine.com/ca/courses/cfa/cfa- level- i/
Diagno se FRM
If you want to see what questions others are asking then please visit our forum at Facebo o k
http://www.edupristine.com/discuss/. Financial Mo deling
Please feel free to write to us for any help regarding your CFA exams. Financial Risk Manager (FRM)
Free Quizzes
7
FRM Interviews
Jo bs
LMS
Newsletter
Operatio nalRisk
Pristine
Pro fessio nal Risk Manager (PRM)
Pro ject Management
Qo td
Tips and Material
Uncatego rized
Updates
PDFmyURL.com

3. Value at Risk (VAR)
Abo ut Site Map Partners T&C Co ntact
Disclaim e r
Glo bal Asso ciatio n o f Risk Pro fessio nals, Inc. (GARP® ) do es no t endo rse, pro mo te, review o r warrant the accuracy o f the pro ducts o r services o ffered by Pristine fo r
FRM® related info rmatio n, no r do es it endo rse any pass rates claimed by the pro vider. Further, GARP is no t respo nsible fo r any fees o r co sts paid by the user to Pristine
no r is GARP respo nsible fo r any fees o r co sts o f any perso n o r entity pro viding any services to Pristine Study Pro gram. FRM® , GARP® and Glo bal Asso ciatio n o f Risk
Pro fessio nals® , are trademarks o wned by the Glo bal Asso ciatio n o f Risk Pro fessio nals, Inc
CFA Institute, CFA® , and Chartered Financial Analyst® are trademarks o wned by CFA Institute. CFA Institute do es no t endo rse, pro mo te, o r warrant the accuracy o r quality o f
the pro ducts o r services o ffered by Pristine.
Co pyright Pristine 20 12
PDFmyURL.com