About This Chapter
Alternative Investments - Chapter Summary
Our instructors have developed engaging lessons you can access any time to enhance your knowledge of alternative investments. Gain greater insight into topics like property valuation, hedge fund strategies and venture capital. In no time, you will be ready to do the following:
- Share benefits and drawbacks of alternative investments
- List principles of property valuation
- Define and discuss the valuation of private equity and venture capital
- Differentiate between angel investors and venture capitalists
- Describe the structure of a hedge fund and list hedge fund strategies
- Explain how distressed securities are used
- Provide the meaning and discuss the operation of managed futures
- Discuss best practices for alternative investment management strategies
Review any number of lessons in any sequence that can help you best understand alternative investments. If you develop questions while studying this chapter, feel free to submit them to our experts using the Dashboard. Multiple-choice quizzes can gauge your comprehension of the lessons you review. A practice exam is available to assess your overall understanding of this chapter.
1. Alternative Investments: Definition, Benefits & Drawbacks
In this lesson, we will define the phrase alternative investment. The lesson will also address relevant issues like various types of alternative investments, identifying their benefits as well as their drawbacks.
2. Property Valuation: Definition & Principles
Valuing property accurately is very important to sellers, home purchasers, lenders, and real estate investors. In this lesson, you'll learn about property valuation and some of its key principles.
3. Private Equity: Definition & Valuation
In this lesson, you will learn the basic structure of a private equity investment, including the players involved, goals, and valuation techniques used to determine an appropriate purchase price.
4. Venture Capital: Definition & Valuation
After reading this lesson, you'll understand how venture capitalists figure out the worth or valuation of your company to determine whether or not they should invest in your company. You'll also see what formula they use.
5. Angel Investors vs. Venture Capitalists
Businesses looking for funding can build their financing strategy around an investor and there are a few options for how to do this. This lesson will explore two of those options, angel investors and venture capitalists.
6. What Is a Hedge Fund? - Definition, Structure & Examples
In this lesson, we will discuss the nature of hedge funds, illustrate investment strategies, and reveal their appeal and controversy. We'll also make comparisons between a hedge fund and a mutual fund and present the overall structure of a hedge fund.
7. Hedge Funds Strategies
This lesson will take you through the basic concepts of hedge funds and the various strategies that they employ to make investments that generate higher returns.
8. Distressed Securities: Definition & Use
Distressed securities are securities of companies feeling intense financial pressure. Usually these companies are on the brink of, if not already in, bankruptcy. In this lesson, we'll describe distressed securities in more detail and we'll give reasons why investors may invest in them.
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Other chapters within the Chartered Financial Analyst (CFA): Exam Prep & Study Guide course
- About the CFA Exam
- Ethical & Professional Standards in Finance
- Quantitative Methods in Finance
- Overview of Economics in the Financial Market
- Domestic Economic Concepts
- International Trade & Currency Exchange
- Overview of Financial Reporting & Analysis
- Types of Financial Reporting & Analysis
- Understanding Corporate Finance
- Equity Investments
- Fixed-Income Securities
- Derivatives in Finance
- Overview of Portfolios
- Portfolio Management Strategies
- Portfolio Performance Analysis