Alternative Investments:

Alternative investments are investments other than ownership of traditional asset classes (public equity and fixed-income instruments and cash) and include private capital, real assets, and hedge funds.

Alternative Investments are grouped together not because they have similar features but instead because they have characteristics distinct from traditional investments. Investing in alternatives can be done through fund investing, co-investing, or direct investing. Alternative investments typically offer investors greater diversification and higher expected returns than traditional investments but often involve longer-term, illiquid investments in less efficient markets. Investing in alternatives requires specialized knowledge. Alternative investments typically rely on more complex and richer compensation structures than traditional investments in order to better align manager and investor incentives over longer periods.

The following is an example of alternative investment.a. Investment in AAA listed bondb. Investment in Government securitiesc. Purchase of commercial real estated. Investment in Exchange traded futures

Alternative investment is defined as a _________ that does not fall into one of theconventional investment categories.a. mutual fundb. financial assetc. personal propertyd. financial planning

What are some examples of alternate investments?Question 2AnswerA.Hedge fundsB.Savings accountsC.Treasury bondsD.Corporate stocks