Determine which of the potential investment vehicles best meets the investment considerations for lfheah. Justify your response.

Question:

Determine which of the potential investment vehicles best meets the investment considerations for Ælfheah. Justify your response. Explain for each investment not selected why the investment considerations are not met. image text in transcribed

Ng and the IC review the optimal approach to determine the asset allocation for Ælfheah, including the traditional and risk-based approaches to defining the investment opportunity set.

The Ælfheah Group is a US-based company with a relatively small pension plan. Ælfheah’s investment committee (IC), whose members collectively have a relatively basic understanding of the investment process, has agreed that Ælfheah is willing to accept modest returns while the IC gains a better understanding of the process. Two key investment considerations for the IC are maintaining low overhead costs and minimizing taxes in the portfolio. Ælfheah has not been willing to incur the costs of in-house investment resources. Qauhtèmoc Ng is the investment adviser for Ælfheah. He discusses with the IC its goal of diversifying Ælfheah’s portfolio to include alternative assets. Ng suggests considering the following potential investment vehicles: image text in transcribed