Which of the Following Is not an Example of an Alternative

question 16

Multiple Choice

Which of the following is not an example of an alternative asset class?

• A) Hedge funds
• B) Private equity
• C) Real estate
• D) Commodities
• E) All of the above are examples of alternative asset classes.

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Definitions:

Retention Ratio

The portion of a company's earnings that is not distributed as dividends but is retained by the business for reinvestment.

Retained Earnings

The portion of a company’s net profits that are kept within the company instead of being paid out to shareholders as dividends.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, often referred to as the bottom line.

Return on Equity

A financial ratio that measures the ability of a firm to generate profits from its shareholders' equity.