Alternative Investments【 Reading 31】习题精选 assets, respect, 2012

prashantsahni

With respect to the role of alternative assets in a portfolio, it can be best described as exposure to:

A) special investment strategies.

B) unique asset classes and/or special investment strategies.

C) unique asset classes only.

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We can categorize alternative investments into three categories corresponding to the role they play in the portfolio.

• Exposure to asset classes that stocks and bonds cannot provide.
• Exposure to special investment strategies such as those used by hedge funds.
• Investments that use both special strategies and unique asset classes (e.g., funds that invest in private equity and distressed securities).

prashantsahni

Special due diligence issues such as valuation, credit analysis, and financial structure are most likely associated with investments:

A) in managed futures.

B) in distressed securities.

C) made indirectly in real estate.

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Distressed securities investing requires due diligence with respect to business valuation, credit analysis, and assessing the company’s problems and financial structure.