header bg

Scan QR code or get instant email to install app


A portfolio manager is most likely to expect higher returns from allocating a portion of assets to the alternative investments asset class because alternative investments:

A often employ leverage.

Adding alternative investments to a traditional portfolio may increase expected returns because (1) some alternative investments are less efficiently priced than traditional assets, providing opportunities for skilled managers; (2) alternative investments may offer a premium for being illiquid; and (3) alternative investments often employ leverage.

Related Information


Leave a Reply

Your email address will not be published. Required fields are marked *