alts — CFA Level I Practice Questions

21 free CFA Level I questions on alts: 6 easy, 10 medium, and 5 hard, every one exam-realistic and fully explained once you sign in. This is the fastest way to turn alts from a weakness into a scoring area — drill it in 10-question reps with immediate feedback.

Drill alts free with full explanations →

1. A private equity fund is being liquidated. The General Partner (GP) is required to return a portion of the car
2. A private equity fund managed by Oakridge Capital uses an American waterfall structure. This means that carrie
3. If the fund's gross return is 4%, what is the performance fee?
4. Oakridge Capital is analyzing 'Fallen Angels' in the fixed income market. A fallen angel is defined as a bond
5. Kestrel Grid operates a fund with a 2% management fee (on beginning assets) and a 20% incentive fee with a hig
6. Sable Payments charges a 'soft hurdle' of 7%. If the fund achieves a gross return of 10%, the incentive fee is
7. What is 'Carried Interest' in the context of a private equity fund?
8. A fund manager at Kestrel Grid is currently 'under water.' This most likely implies that:
9. If the fund gains 15% in the following period, on what portion of the gain can the manager charge an incentive
10. An analyst at Redhook Ports is evaluating a private infrastructure fund. During the investment period, managem
11. Northline Timber's private equity consultant notes that 'backfill bias' is affecting their benchmark data. Thi
12. Kestrel Grid Partners reports the following metrics for its private equity fund: DPI = 0.40x and RVPI = 0.75x.
13. In the context of the J-curve, what does 'appraisal smoothing' do to the reported risk metrics of an alternati
14. Juniper Health's hurdle rate is 8%. If the fund earns a 7.5% return net of management fees, what is the incent
15. Redhook Ports invests in a 'Brownfield' infrastructure project. This means the project is:
16. Which of the following metrics is the most effective 'audited truth' about how much cash an investor has recei
17. Northline Timber notes that timberland returns include 'biological growth.' This component of return is unique
18. What is the Distributed to Paid-In (DPI) multiple?
19. Juniper Health sees a facility with a 12.0% cap rate and a $2.4 million NOI. If the property is purchased with
20. If the required rate of return (r) is 9.0%, what is the implied constant growth rate (g) embedded in this cap
21. Redhook Ports is evaluating a terminal worth $80.0 million based on a 6.0% cap rate. If NOI increases by 10% a