Question 1 How much would 3x inverse leveraged ETF typically borrow for each $1 of investor capital? 1. $10 2. $3 3. $2 4. $0.50 2. Question 2 An ETF has distributed a non-taxable amount to investors, categorized as a return of capital (ROC). If an investor later fully sold his or her ETF units, what would be the likely resultant tax effect 1. At the time of sale, the resultant capital gain would be reduced by any amounts identified as ROC 2. A decrease in earned capital gains resulting in lower taxes. 3. It would be negligible as distributions categorized as ROC will have no effect on future capital gains or losses 4. An increase in earned capital gains resulting in higher taxes

Question 3 What does the spot price refer to? 1. The current price of a commodity being sold in a cash market 2. The market price for a commodity of low-grade quality 3. The exercise price on a derivative contract 4. A fire-sale price, which is usually well below market value

Question 4 If the return on the ABC fund was normally distributed with an average monthly return of 0.98% and a standard deviation of 5.78%, we would expect to find that: 1. 99% of all returns lie within -11.56% and 11.56% 2. 68% of all returns lie within -5.78% and 6.76% 3. 68% of all returns lie within -4.8% and 6.76% 4. 95% of all returns lie within -6.7% and 10.2% 5.

Question 5 A hurdle rate is the rate a hedge fund must earn before its manager is paid an incentive fee. If a fund has a hurdle rate of 3%, the fund earns 10% for the year, and a high-water mark of 5% exists, what will the incentive fee calculation be based on? 1. 1% 2. 4% 3. 2% 4. 3%