AIM — Certified Alternative Investment Manager Fund Practice Questions

A hedge fund is considering a new investment in a tech startup. Which factor is MOST critical in the decision-making process?

• AA. Management experience
• BB. Diversification
• CC. Current market trends
• DD. Regulatory compliance

An investor wants to assess the potential liquidity risk of a real estate fund. What should they review?

• AA. Property valuations
• BB. Cash reserves
• CC. Exit strategies
• DD. Historical returns

A venture capital fund is looking to fund a startup in healthcare. What risk is MOST associated with this sector?

• AA. Competition
• BB. Market fluctuation
• CC. Currency risk
• DD. Regulatory risk

A fund manager is assessing the scalability of a business. What does this refer to?

• AA. Regulatory compliance
• BB. Ability to raise funds
• CC. Capacity to grow
• DD. Market share

A real estate fund focuses on benefit from appreciation. Which strategy is typically employed?

• AA. Buy and hold
• BB. Short selling
• CC. Arbitrage
• DD. Flipping