Chip Jergen, CFA, is an asset manager who wishes to allocate a percentage of his portfolio to alternative investments. Jergen invests in a security that represents a proportional claim to cash flows from a pool of loans. In which category of alternative investments has Jergen most likely invested?

A Real estate.

explanation

One of the ways to invest in real estate is by purchasing residential or commercial mortgage-backed securities.

Take more free practice tests for other PASSEMALL topics with our cfa level 1 exam now!

Comments