Alternative Investments Q6
0. Which of the following is least likely to be considered an alternative investment?
- Option : C
- Explanation :
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A. Hedge funds – These are classic examples of alternative investments. They use complex strategies like short selling, leverage, and derivatives.
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B. Real estate – Real estate is also a well-known alternative investment, especially when held through direct ownership or private funds.
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C. Long-only stock funds – These are traditional investments. They invest in publicly traded stocks without using leverage or short selling, and they typically offer high liquidity and transparency.
Correct Answer: C. Long-only stock funds
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