The 'building blocks' method for determining expected returns for alternative investments involves four steps: (1) begin with the risk-free rate, (2) add estimated returns linked to relevant factor exposures such as credit spreads, yield curve, equity, and liquidity, (3) incorporate assumptions for manager alpha, and (4) subtract appropriate management fees, incentive fees, and taxes.

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• Person: Not available Organization: AnalystPrep
  Risk Factors, Expected Returns, and Investment Instruments

Sources

• Risk Factors, Expected Returns, and Investment Instruments analystprep.com AnalystPrep via serper

Referenced by nodes (6)

• liquidity concept
• equity concept
• yield curve concept
• risk-free rate concept
• alternative investments concept
• expected return concept