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Basic Question 2 of 5
Which investment classes are classified as alternative investments?
II. 30-year U.S Treasury bonds.
III. Commercial papers.
IV. Gold mines.
V. Stock futures.
I. Investments in real estate.
II. 30-year U.S Treasury bonds.
III. Commercial papers.
IV. Gold mines.
V. Stock futures.
User Contributed Comments 9
| User | Comment |
|---|---|
| vatsal92 | Real estate and fixed assets are part of alternative investments. |
| jasonkwk | stock futures is not alternative investments? |
| To-be-CFA | @jasonkwk: Stock futures are derivatives. |
| ankurwa10 | Stock futures is derivatives and commercial paper and T-bonds would be debt instruments, a long-established traditional asset class. |
| CJPerugini | The reason stock futures are not classified as an alternative investment is because they are an instrument that is used by the alternative investment (hedge fund). |
| Murtadha | Real estate is an investment class with alternative investments and gold mines are a commodity. Other answers represent either debt or in the case of stock futures, as CJPerugini said, is a tool that is used within one of the classes of alternative investments. |
| ascruggs92 | CJPerugini, yes and not. Stock futures are not classified as alternative investments because it has zero of the distinctive characteristics listed in the notes. None of these apply to stock futures: - lower liquidity - less regulation - less transparency - higher fees - limited historical return data They are not classified as AI's because they are transparent, publicly traded instruments in highly liquid (for the most part) markets. |
| Olesya_CFA | You guys are so smart. There is gonna be a tough competition in the investment services market after you all get your designations. Ugh ugh. |
| ibrahim18 | Really smart guys and girls in this room |
You have a wonderful website and definitely should take some credit for your members' outstanding grades.
Colin Sampaleanu
Learning Outcome Statements
describe features and categories of alternative investments
CFA® 2024 Level I Curriculum, Volume 5, Module 1.