Assignment 3 Alternative Investment on that hitch atomic number 18 six elemental categories of secondary investments. Most shargon several properties, such as low liquid state and difficulty in measuring returns. on that point ar some issues concerning composing suitable indices as benchmarks. There be special repayable diligence issues ranging from assessing the type of commercialize probability the investment offers to the people managing the investment. Hedge funds atomic number 18 a broad class of selection investments and acquire many change sub-categories. Based upon historical data, most alternative addition classes would have improved risk-adjusted returns, if added to a stock and bond portfolio. many another(prenominal) alternative investments have in high spirits Sharpe ratios as standalone investments; however, the Sharpe ratio whitethorn not be an appropriate risk measure due to skew return distributions on many alternative investments. long-term investments some(prenominal) investments, which have a horizon of one family or more, are considered a long- line investment for tax revenue purposes. long-run investments are investments made by a go with in order to secure an additional income stream or a strategic goal. Such investments can range from anything from buy a minority stake at another company to long-run ducks a step-upst oil prices.
Berkshire Hathaway s investment in Coca-Cola and Southwest Airlines hedge against high oil prices are good examples of long-term investments. In this guinea pig too, the company needs to exercise prudence in reportage the value of the investment. They are reported at the gla re of leveraging price or market value. Any! gains from these investments are just now recorded after the sale of the position. These gains are sheath to punk rocker gains taxes rather than income taxes. Futures transactions are long term if the deoxidise was held for more than 6 months. In futures trading, 60% of your capital gain or loss will be handle as a long-term capital gain or loss, and 40% will be treated as a short-term capital gain or loss unheeding of...If you expect to get a full essay, order it on our website: OrderEssay.net
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