Welcome to the "advanced" assessment on Alternative Investments. This rapidly growing area of investment management is significantly different from the traditional “long-only” investment vehicles that most have used throughout their careers. Because of the overall complexity of these products and their trading strategies, industry professionals must be cognizant of their level of knowledge about these investment strategies. In addition, compliance and oversight of these products is garnering increased scrutiny from both FINRA and the SEC. The purpose of this assessment is to help you understand your knowledge of alternatives and the underlying trading strategies they employ.

This quiz is CONFIDENTIAL. We will not use your name or any specific personal information you provide to us in any way to identify you or share your specific results along to anyone. We may use the aggregate results of test takers for the purposes of identifying areas where further education might be important for the industry. WE WILL NOT REVEAL YOUR INDIVIDUAL RESULTS.

About the Questions Asked

The questions asked in this quiz are specifically designed around 4 key competencies that regulatory agencies have indicated are key parts of their assessment of advisors using these products. Specifically, these areas are:

  1. Differentiate Between Strategies
  2. Educate on the Risks
  3. Set a Clear Return Expectation
  4. Understand the Portfolio Impact of Adding the Strategy

Demographic Information

Before beginning the quiz, please provide some basic demographic information about yourself. This will only be used to analyze results of various segments of the industry.

Instructions

This is a unique type of quiz called a “two-dimensional assessment” or “confidence-based assessment”. There are 20 multiple choice questions provided. For each, you will provide your answer AND also provide your level of confidence in your answer. Scoring is based on your number of correct answers as well as your level of confidence in each answer. For a correct answer, you will get an increasing number of points based on the level of confidence you indicate. As an example, if you answer a question correctly and rate your confidence as “Moderately Confident,” you will get less total points than if you indicated a higher level of confidence. If you indicate that you are “Not Confident at All,” you have no risk as you will get 0 points regardless of a correct or incorrect answer. If, however, you indicate high confidence and get the answer wrong, you lose more points than if you rate your confidence lower.

As you can see, it is vital to accurately indicate your level of confidence in each answer, as it will not only help you score the highest when you identify a correct answer, but may also penalize you when your answer is incorrect and you indicated a high level of confidence.

Scoring

At the end of the test, you will receive 3 scores.

  1. Raw Score: This is your percentage “Correct”. It is scaled from 0 to 100.
  2. Confidence-Weighted Score: This is the score that is based on your number of correct and incorrect answers and the level of confidence you indicated for each answer. The scale is based on -200 to 200. (Note: This score can be negative if you have a significant number of incorrect answers that you indicate you are confident are correct.) The purpose of this score is to provide you feedback on your level of confidence and knowledge combined.
  3. Confidence Score: This score is simply an indication of your level of confidence in answering all of the questions. It will be provided on a scale of 0-5 - 5 indicates the highest level of indicated confidence and 0 the lowest.