Why Do Alternative Investments Make Sense for Institutional Investors

question 10

Multiple Choice

Why do alternative investments make sense for institutional investors?

• A)They reduce the rate of return and increase the standard deviation of the portfolio
• B)They increase the rate of return and reduce the standard deviation of the portfolio
• C)They reduce the rate of return and reduce the standard deviation of the portfolio
• D)They increase the rate of return and increase the standard deviation of the portfolio

---

Definitions:

Validity

A measure of whether a test measures what it is supposed to measure.

Task-Oriented

Focused or centered on the completion of specific tasks or objectives rather than on broader goals or social interactions.

Explicit

Clearly expressed or fully stated in the actual text or speech.

Quantitative

Relates to research that focuses on obtaining and analyzing numerical data and statistical information.