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Alternative Investments MCQ - Alternative Investments Section 1

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One of the key reasons for investing in real estate is the potential for competitive long-term total returns driven by both income generation and capital appreciation.
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Early stage financing (early stage venture capital) is provided to companies moving toward operation but before commercial production and sales have occurred.
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Venture capital entails investing in private companies with high growth potential.
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Characteristics of an attractive target company for LBOs include: undervalued or depressed stock price, willing management, inefficient companies, strong and sustainable cash flows, low leverage, and significant amount of physical assets.
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Backwardation is a situation where the spot price exceeds the forward or futures price. The opposite is true for contango.
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