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2. The range or multiple or investment for nedge ninds depends on the investor's holding period of the fund Critically explain the best alternative Portfolio
2. The range or multiple or investment for nedge ninds depends on the investor's holding period of the fund
Critically explain the best alternative Portfolio investment to get the maximum return from risk and return decision. The below table could take your consideration: Target Returns Ouestion # - 25%+ 15% - 30%+ MarksIOI Fund Type Private Equity Venture capital Private Debt Hedge Funds Real Estate Funds Annual Description Return' Invest into private companies with an aim to profit from growing the value of the business through a controlling stake e.g. Burger King, Boots Pharmacy. Invest into early-stage, emerging growth companies to profit from growing an idea/ start-up company into a large and successful company e.g. Uber, Airbnb, Whatsapp. Invest into various private debt instruments/ loans to deliver superior risk-adjusted returns vs. savings/ bonds. Funds that invest money in anything that they believe will make a profit so they try to find profitable returns across all types Of market conditions. Make equity or debt investments into stable cash now generative properties or riskier property developments. -15% -15% 5% - 20%+ Multiple of Investment' 2.ox - 2.5X+ 2.5x - 3.0X+ 1.4X - 2.ox NA2 1.5X - 2.5X+ Average Duration' 5 - 10 years 5 -10 years I - 8 years I month - 3 years 3 - 10 years Page 3 of 3 2 The retwns murpe or/nwstnpnt and dtraDon me various rund & Wustratne gxrgses am is basew an esnnted retwns most nmds wftmn d certam asset class Actual returns of funds 'nay vary based various racts. The ratw or rmNtWe ofinstnpnt rot funds derrrS tm investor's pencxl orme nmd
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