- CFA Exams
- CFA Level I Exam
- Topic 8. Alternative Investments
- Learning Module 1. Alternative Investment Features, Methods, and Structures
- Subject 1. Types and Categories of Alternative Investments
CFA Practice Question
Alternative investments:
B. relatively recent additions to the investment universe.
C. include investments in some of the oldest investment classes.
A. are uncommon.
B. relatively recent additions to the investment universe.
C. include investments in some of the oldest investment classes.
Correct Answer: C
User Contributed Comments 3
| User | Comment |
|---|---|
| Salim6 | can someone pls explain why C ? |
| SAB1987 | @Salim6 - Firstly you can rule out A because alternative investments are relatively common and then the decision between B and C is whether they are new or old. If you think about alternatives such as commodities, real estate, fine wine, etc then these are very old forms of investment. So C is your answer. |
| ascruggs92 | This one confused me a little but it makes sense now. An example would be that Hedge Funds (considered an alternative investment) typically own stocks and bonds, which are some of the oldest investment classes |