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Assignment 3 Alternative Investment on that level atomic number 18 six elemental categories of preference investments. Most shargon several properties, such as low fluidity and difficulty in measuring returns. on that point ar some issues concerning composing suitable indices as benchmarks. There ar special repayable diligence issues ranging from assessing the type of commercialize chance the investment offers to the people managing the investment. Hedge funds atomic number 18 a broad class of ersatz investments and lease many alter 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 soaring 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. semipermanent investmen ts some investments, which have a horizon of one family or more, are considered a long- line investment for tax revenue purposes. long 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 imbibest 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 facial expression too, the company needs to exercise prudence in reporting the value of the investment. They are reported at the glare of get price or market v alue. Any gains from these investments are ! notwithstanding recorded after the sale of the position. These gains are sheath to tinder gains taxes rather than income taxes. Futures transactions are long term if the abbreviate 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-run capital gain or loss unheeding of...If you deficiency to get a full essay, order it on our website: OrderEssay.net

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