This question compares Traditional investments and Alternative investments. In this question, Traditional investments are restricted to only equities and bonds, while Alternative investments are restricted to only Hedge Funds, Private Equity and Venture Capital.

Which of the following statement is incorrect regarding the two types of investments?

Group of answer choices

A Alternative Investments regulations do not require the same level of public transparency (into company operations, investment strategies, etc.) as are required for publicly listed equities and bonds.

B Traditional investments are easier to trade in the market than Alternative investments.

C The correlation between traditional investments and Alternative investments is low and therefore provide diversification benefits in an investment portfolio.

D Alternative investments and Traditional investments are both valued using discounted cash flows.

E Alternative Investments are derived from traditional investments, such as equities.