What is the difference between the IRR and the MOIC in alternative investment performance?
Suppose a private equity (PE) firm makes an initial investment in company Epsilon of $5 million. Then, at the end of the first year, the firm needs to place additional capital for an amount of $2.5 million, and at the end of the fourth year, another additional capital investment of $1.5 million. Finally, the position
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What is the difference between alternative and traditional investments?
There are different ways to classify investments. One of these classifications differentiates between traditional and alternative investments. Which one of the following sentences includes examples of traditional investments? a) Stocks, bonds, cash (deposits), real estate, and commodities. b) Long-only stocks, long-only bonds, cash(deposits) and real estate. c) Long-only publicly traded stocks, long-only publicly traded bonds,
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