CFA Level I · CFA Level I Exam · Alternative Investment Features, Methods, and Structures
Which of the following is most likely classified as an alternative investment category?
A hedge fund pursuing event-driven strategies is the alternative investment. Hedge funds are a core alternative category alongside private capital, real assets and digital assets, whereas listed equity index funds and fixed-coupon government bonds are traditional investments.
- AA listed large-cap equity index fund
- BA hedge fund pursuing event-driven strategiesCorrect
- CA government bond with a fixed coupon
Explanation
Alternative investments include hedge funds, private capital, real estate, infrastructure, natural resources and digital assets. Listed equity index funds and government bonds are traditional investments, so they are not alternatives.
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