Alternative Investment Research Articles

Comparing the Impacts of Investment Alternatives on Accumulated Wealth

This study performs a thorough comparison to examine how investment decisions affect the accumulation of wealth among different types of investors. It looks at different investment timeframes, ranging from short-term to long-term approaches, and assesses the main factors that affect individuals' investment choices. The research also evaluates how risk tolerance influences investment choices and the makeup of portfolios. Moreover, it explores the intricacies of making investment decisions, such as the information sources investors use and the impact of market conditions on their selections. At the core of the study is evaluating how pleased investors are with the capacity of their investment portfolios to generate wealth. The research goal is to analyze various portfolio combinations to determine factors that aid or impede the growth of wealth. In order to accomplish this goal, the study uses a reliable approach, such as surveys and data analysis, to offer a thorough insight into the trends in the investment field. The expected results of this research are set to provide important knowledge for personal and institutional investors, financial advisors, and policymakers, assisting in improving investment decisions and wealth management strategies. Keywords: Investment, Goal, Portfolio, Risk Tolerance, Satisfaction, Investment Strategies.

CROSS BORDER MERGERS & ACQUISITIONS ALONG WITH REGULATIONS OF OVERSEAS INVESTMENT AND SEBI

Cross-border mergers and overseas investments by “Alternative Investment Funds” (AIFs) and “Venture Capital Funds” (VCFs) are two significant mechanisms facilitating capital movement across borders in the globalized economy. This paper provides an in-depth analysis of the regulatory frameworks and operational dynamics of both mechanisms, comparing and contrasting their objectives, entities involved, regulatory requirements, and risk-reward profiles. Cross-border mergers involve the consolidation of companies from different jurisdictions, aiming to achieve synergies, expand market presence, or leverage complementary strengths. The regulatory landscape governing cross-border mergers includes provisions under the Companies Act, of 2013, “The Foreign Exchange Management Act” (FEMA), and Competition Act, of 2002, among others. These mergers entail adherence to complex legal and regulatory frameworks, including approvals from regulatory authorities, compliance with foreign exchange laws, and fulfilment of competition norms. Despite the potential benefits, cross-border mergers also pose integration challenges, cultural differences, and regulatory uncertainties. In contrast, overseas investments by AIFs/VCFs enable domestic investors to diversify their portfolios by accessing opportunities in offshore companies, typically startups or emerging enterprises. The regulatory framework for these investments is overseen by the “Securities and Exchange Board of India” (SEBI) and includes guidelines, circulars, and compliance requirements. While regulatory compliance is necessary, the process may be relatively streamlined compared to cross-border mergers. Furthermore, the paper discusses the distinct objectives, entities involved, and risk-reward profiles of cross-border mergers and overseas investments by AIFs/VCFs. Cross-border mergers primarily involve established companies seeking strategic alliances or expansion opportunities, while AIFs/VCFs focus on deploying capital into high-growth opportunities, often at early stages of development. Overall, understanding the nuances of both mechanisms is crucial for businesses, investors, and policymakers to navigate the complexities of the globalized economy and make informed decisions regarding cross-border transactions.

Contributions of Startups to the Growth of the Indian Economy: A State Wise Analysis

The paper investigates the complex effects of startups on the resilience and growth trajectory of the Indian economy. It explores the ways in which these young, creative businesses are promoting dynamism and adaptation, especially in the face of economic difficulties. The report clarifies government programs that give emerging businesses critical financial support, such as the Startup India Seed Fund Scheme (SISFS) and Alternative Investment Funds (AIFs) under the Fund of Funds for Startups (FFS). The article intends to reveal the role of startups in driving inclusive economic growth, fostering technological advancements, and creating jobs by analyzing their individual contributions across different sectors. The study also looks into how entrepreneurs are promoting India as an innovation hub and raising the country’s global competitiveness. Policymakers, investors, and entrepreneurs will all benefit from this investigation’s insightful findings, which emphasize how important it is to support a strong startup ecosystem in order to have a vibrant Indian economy.

ENVIRONMENTAL IMPACT OF CRYPTOCURRENCY MINING: SUSTAINABILITY CHALLENGES AND SOLUTIONS

The rapid growth of cryptocurrencies over the past 14 years has led to increased deep-level mining activities. This research aims to explore the environmental impacts resulting from the surge in crypto mining and proposed solutions to mitigate these impacts. Cryptocurrencies, gaining popularity as alternative investments and global payment tools, have significantly boosted crypto mining activities. However, the increasing number of transactions requiring computer validation has resulted in adverse consequences for the environment, particularly in terms of substantial energy consumption. Literature review and systematic analysis were conducted to comprehend the environmental impact of crypto mining, focusing on major cryptocurrencies such as Bitcoin, Ethereum, and others. The analysis highlights that crypto mining, especially Bitcoin, requires a significant amount of electricity, leading to a substantial carbon footprint and broad environmental repercussions. Proposed solutions to address the environmental impact of crypto mining include the use of renewable energy sources such as solar and wind power, enhancing the efficiency of specialized mining devices (ASICs), and exploring more energy-efficient consensus mechanisms like Proof of Stake (PoS) compared to the currently utilized Proof of Work (PoW). Reducing redundancy in blockchain technology has also been identified as a crucial step in minimizing unnecessary energy consumption. However, this research has limitations concerning data consistency, a comprehensive understanding of overall environmental impacts, and continuous technological changes in the crypto world. Therefore, future research should focus on developing more efficient consensus mechanisms, effective policy frameworks and governance, as well as real-world implementation studies to evaluate the sustainability solutions proposed.

Practical Applications of Is Alternative Investment a Successful Strategy?

Practical Applications of Is Alternative Investment a Successful Strategy?

Bitcoin as a Distinct Asset Class for Hedging and Portfolio Diversification: A DCC-GARCH Model Analysis

Purpose: Bitcoin, the most popular form of virtual currency, currently holds the highest market capitalization among cryptocurrencies and serves as a benchmark for the typical cryptocurrency. The main goal of this research is to evaluate Bitcoin’s potential as a distinct asset class. This will be achieved by building upon previous studies and investigating its utility as both a hedging instrument and a tool for portfolio diversification. Methodology: In this study, Bitcoin is compared with other asset classes, such as key stock indices of India’s Nifty-50 and Sensex, and key currency pairs with the Indian Rupee, including the US dollar ($), Euro (€), Pound sterling (£), and Japanese Yen (¥). Gold, as one of the most precise commodities, is analyzed using descriptive statistics to verify and confirm its properties as a distinct asset class. Additionally, the study employs the DCC-GARCH model to ascertain whether Bitcoin qualifies as both a hedging instrument and a tool for portfolio diversification. Findings: The findings of this study indicate that Bitcoins constitute a unique and separate category within alternative assets and investment classes. Various descriptive statistics confirm that Bitcoins exhibit characteristics of an asset class. Additionally, the study reveals and verifies the hedging and portfolio diversification capabilities of Bitcoin based on the results of the DCC-GARCH model. Practical Implications: The findings of this study will prove useful for investors considering cryptocurrency (Bitcoin) as an alternative asset class for diversifying their portfolios and hedging against volatility. Originality/Value: This study contributes to the research paradigm of Bitcoin finance by providing a perspective from a developing nation on Bitcoin as an asset class, which differs from other asset classes such as Nifty-50, Sensex, USD–INR, EUR–INR, GBP–INR, JPY–INR, and gold. While previous research has predominantly focused on developed nation contexts, this study underscores the importance of examining Bitcoin’s role in portfolio diversification and hedging strategies. To enhance our understanding, this research presents daily observations of recent economic data spanning from 2011 to 2021. Assessing whether Bitcoin qualifies as an alternative investment and a distinct asset class is crucial, as it could significantly influence investment decisions and serve as a valuable tool for risk management and diversification purposes for investors.

A Study on Investment Preferences of Young Investors with Reference to Ghaziabad City

From the economic liberalization there are various investment alternatives available in the market and the main objective of this research paper is to know the investors preferences over the investment alternatives which are available in the market. Investment is an activity by which people earn money by investing their money in some investment whether it is physical and Financial Asset. Investors invest their money with different needs, goals and objectives in their mind such as safety, Profit, Security, and capital Appreciation etc. There are various number of investment avenues present in the market such as Bank Deposits, Post Office Deposits, Equity Market, Mutual Funds, Physical Gold, Real Estate. The primary objective of this research paper is to find what are the preferences among the Young Investors who belong to the age group of 21-35 years in Ghaziabad city.

Hedge performance of different asset classes in varying economic conditions

In the realm of long-term investment, strategic portfolio allocation is an essential tool, especially in relation to risk management and return optimisation. There are many ways to pursue optimal portfolio composition, and their effectiveness depends on many factors, including the investor’s goals, risk appetite, and investment horizon. One of the primary means of portfolio optimisation is diversification. The core idea of diversification is to maintain a diverse portfolio with weakly correlated assets that can vastly reduce portfolio exposure to different market stress factors. Diversification is a fundamental strategy in investment and portfolio management that is essential for mitigating risk and enhancing potential returns over the long term. By spreading investments across various asset classes, sectors, geographies, and investment styles, diversification helps reduce the volatility of the overall portfolio. The main subject of this study is the theoretical basis of portfolio diversification and the analysis of historical data to derive optimal strategies for using uncorrelated assets to improve portfolio performance. This paper examines the correlation dynamics between different asset classes, such as stocks, bonds, and alternative investments, and their response to changes in inflation, interest rates, and market volatility, and tests it with historical data to deduce the optimal strategies for using uncorrelated assets to improve portfolio performance. The findings of this study prove the variable relationship between asset classes under specific economic conditions. This study uses historical data to show how different asset classes can be optimally leveraged or adjusted to mitigate risks and capitalise on opportunities presented by shifting economic indicators. This reveals that the hedging benefits of equities, bonds, and gold depend greatly on interest rates, market volatility, and inflation. It also provides guidelines for investors on optimal portfolio allocation and risk management. In conclusion, dynamic portfolio management is an essential tool for reducing the portfolio’s overall volatility while maximising returns. The diversification performance of different financial asset classes depends on major economic indicators such as inflation, interest rates, and market volatility. Investors seeking to optimise their portfolios in anticipation of or in response to economic changes, aiming to maximise returns while controlling for risk, can leverage these results.

Practical Applications of Performance Measurement for Alternative Investments Portfolios

Practical Applications of Performance Measurement for Alternative Investments Portfolios

Türkiye’nin Gelenek Dışı Para Politikasının Lisanssız Güneş Santrallerinin Kârlılığı Üzerine Etkisinin Değerlendirilmesi

Türkiye’s unorthodox monetary policy implemented between September 2021 and June 2023 affected many macroeconomic indicators including inflation. Turkish Central Bank’s (CBRT) continuous lowering of the policy interest rate increased the negative real interest rate constantly. As a result, households invested in alternative assets including housing, foreign currency and gold in order to hedge against inflation. This increase in demand soared real estate prices. Besides, land is an important cost item for solar power plant investments. Considering the linear relationship between land prices and housing prices, this paper investigates the effect of the increase in housing prices on the capital expenditure (CAPEX) of 37 unlicensed solar power plant projects in Türkiye. According to the results, a correlation of -0.97 was determined between the real interest rate and housing price index in Türkiye. In addition, a correlation of 0.20 was found between housing price index and the CAPEX of unlicensed solar power plants. This situation indicates that the increase in housing prices primarily due to the unorthodox monetary policy might adversely affected the profitability of unlicensed solar power plants, since CAPEX is an important factor affecting the profitability. Although the unconventional monetary policy has been abandoned as of July 2023, the negative effects of this policy on the economy, especially inflation, still continue. Policies and practices that would increase the profitability of solar power plants will make significant contribution to the renewable energy investors and Türkiye's green transition. In this context, development and issuance of carbon development credits under the voluntary carbon market standards such as Global Carbon Council (GCC) Standard and International Carbon Standard (ICR) presents additionality to support solar power plant investors and help the country to reach her carbon neutrality target.

Exploratory Analysis of Regulation of Hedge Fund in India

This research paper provides critical insights of hedge funds, examining their positive and negative impacts on investment vehicles. Hedge funds cover a broad range of investment Philosophies and Risk tolerance strategies to grow the invested funds of their investors. Hedge funds are known for their diverse investment strategies, offering potential diversification benefits and the ability to generate alpha in various market conditions. Their strong risk management systems and potential for liquidity make them an attractive option for certain investors. However, this research also underscores both positives and negatives with hedge funds, including high fees, complexity, and inaccessibility to most retail investors. Regulatory risks and lack of transparency pose additional challenges, while performance variability and the risk of significant losses require careful consideration. The paper explores the intricate nature of hedge funds, addressing the need for due diligence and professional guidance when evaluating investment opportunities. By providing a comprehensive assessment of hedge funds, this research paper aims to inform investors, financial professionals, and policymakers about the advantages and drawbacks of these investment vehicles, facilitating more informed decision-making within the dynamic landscape of alternative investments. This paper will also have a comparative analysis of other countries where hedge funds are regulated and how they are regulating hedge funds and how they are utilizing hedge funds to grow their GDP.

Exploring the Investment Behaviour of Petty Traders in Sunyani Municipality

Purpose: The primary goals of the study are to assess the level of awareness among small merchants in Sunyani Municipality regarding investment prospects, the sources of investment information, and the impact of demographic characteristics.
 Methodology: Questionnaires were employed in gathering data for the study, which was based on the quantitative research approach. Using Slovin's sample size computation, a sample size of 396 respondents was selected for the investigation.
 Findings: The results revealed that the majority of small traders were aware of prospective investment alternatives such as real estate, government bonds, bank deposits, life insurance, mutual funds, and stocks and shares. It was discovered that the traders had access to two information sources: the formal and informal sectors. The survey discovered that friends and family serve as the key informal sources of information. Regarding the formal sector, it is disclosed that radio and television served as their sources of investment-related information. Also, the degree of awareness regarding investment opportunities was influenced by gender, age, and household size. The findings indicate that among the investment avenues available to traders, gold and other minerals are not well-known by traders.
 Unique contributor to theory, policy and practice: Therefore, it is recommended that programs and talk shows are organized for people to be aware of these avenues. Policymakers should prioritize programs focused on enhancing the financial inclusion of petty traders by improving the accessibility of formal financial services such as savings accounts, credit facilities, and insurance products. The research findings could potentially aid in improving financial inclusion for small-scale traders, informing local government policies that support them, providing valuable market intelligence for businesses targeting this demographic, and contributing to academic knowledge in the fields of economics, finance, and development studies.

Financialization and Dynamics of Currency Futures Market during COVID-19: Evidence from India

This study examines inter-relationship and impact of COVID-19 on Indian currency and equity futures markets during the period of financial crisis. In such period, investors look for alternative asset classes to hedge against risk as observed during Global Financial Crisis. This study examines whether same phenomenon was observed after COVID-19 in India considering currency futures as an alternate asset class. For this purpose daily exchange rate of Indian Rupee with British Pound Sterling, Japanese Yen, Euro and United States Dollar and for equity futures, near-month NIFTY 50 futures contracts are used. After examining stationarity of data, Co integration test, Granger causality and Bi-variate correlation is applied. ARCH and DCC-GARCH model is employed to allow for heteroscedasticity and time variation in correlation. It is observed that YEN, JPY and USD display significantly negative correlation with Nifty futures. Currency futures is causing Nifty futures during COVID-19 period and leads Nifty futures by one day. However, it is other way around during pre-COVID-19 period. Long-run co-integration is not evident. ARCH effect is present in both time series and except for insignificant short-run shock persistence during COVID-19 period, there exists time varying correlation between currency returns and Nifty.

DEFINING STRATEGIC INVESTMENT PRIORITIES IN BUSINESS ACTIVITIES

This paper underscores the role and position of investment activity within the framework of strategic enterprise management. It explores the economic essence and distinct characteristics of the investment process, which encompasses the issuance and accumulation of production resources as investment goods and services. It is argued that the investment process at an enterprise can be viewed from two perspectives: as a complex of potential alternative investment decisions based on available financial resources and the capability to attract additional funds (implemented through the development of the enterprise's investment policy strategy); and from the standpoint of each specific investment decision (the rationale and specific investment projects). The paper provides comprehensive recommendations that cover all aspects of the investment process to enhance the methodological support for selecting strategic investment priorities to ensure the enterprise's sustainable development. Distinctive features of financial and investment resources in the system of resource provision for enterprise development when forming an investment development strategy are highlighted. A matrix for defining the plan's priorities for investment provision of enterprise development is developed. It is substantiated that investment risk depends on numerous factors that directly influence the choice of investment strategy. To generalize the impact of these factors, a rating indicator is proposed, which considers the characteristics of investment attractiveness and the level of investment risk. The composition of attributes for assessing the investment attractiveness of the enterprise is justified, including the state of critical factors determining investment efficiency: technical-technological base of production; level of resource availability and efficiency of their use; economic parameters of business activity and financial condition of the enterprise; market demand dynamics and competitive intensity on the target market; level of management organization. Recommendations are provided for determining investment risk based on a summary of quantitative assessments of a complex of dangers and threats that are individual to each investment process participant.

Cryptocurrency interest in geographical regions with high unemployment rates

Purpose- In regions with high unemployment rates, individuals often face economic uncertainty and may seek alternatives to traditional financial systems. In such circumstances, some individuals may turn to alternative investments and financial instruments, with cryptocurrencies such as Bitcoin being among them. The value of these cryptocurrencies is often volatile due to their speculative nature, which can lead investors to take on more significant risks. While this situation can result in substantial gains, it can also lead to significant financial losses. The primary use of cryptocurrencies is generally for investment purposes. Since cryptocurrencies are digital, they operate entirely in a virtual environment. The loss or theft of the digital password in the virtual space means the loss of the wallet. Security in cryptocurrencies is very weak. The lack of government guarantees and legal infrastructure globally poses certain threats to investors, making cryptocurrencies carry a higher risk compared to other investment instruments. This study will investigate the regional relationship between cryptocurrency interest and unemployment rates. The aim is to determine whether individuals living in geographical areas with high unemployment rates show more interest in cryptocurrencies compared to those in other geographical regions. Methodology- In line with the research objective, Google search engine data for the past 10 years has been analyzed using content analysis methodology. A query has been conducted to determine in which regions of Turkey cryptocurrency names are most frequently searched, and a comparison has been made on a provincial level across all 81 provinces. Additionally, considering the unemployment data provided by the Turkish Statistical Institute (TUIK), regions with high and low unemployment rates have been identified. Subsequently, an investigation has been carried out to determine whether there is any correlation between regional Google searches and unemployment rates in these areas. Findings- When examining the findings from the perspective of unemployment, it has been observed that the regions where cryptocurrency names are most frequently searched align with areas having the highest unemployment rates, while the least searched areas correspond to regions with lower unemployment rates. Among the 10 provinces with the highest unemployment rates, 8 of them are included in the list of 10 provinces with the highest Bitcoin search frequency. Similarly, 8 out of 10 provinces with the lowest employment rates are also listed among the 10 provinces with the highest Bitcoin search frequency. Furthermore, among the 10 provinces with the lowest per capita gross domestic product (GDP), 7 of them are included in the list of 10 provinces with the highest Bitcoin search frequency. Conclusion- As a result of the relationship analyses conducted in the research, it has been observed that in Turkey, regions with high unemployment rates, low employment rates, and low Gross Domestic Product (GDP) have a higher frequency of Bitcoin searches compared to other regions. Keywords: Cryptocurrency, unemployment, bitcoin JEL Codes: P44, E24, E44

Cost-effectiveness of system-level mental health strategies for young people in the Australian Capital Territory: a dynamic simulation modelling study

Regional mental health planning is a key challenge for decision makers because mental health care is a complex, dynamic system. Economic evaluation using a system dynamics modelling approach presents an opportunity for more sophisticated planning and important evidence on the value of alternative investments. We aimed to investigate the cost-effectiveness of eight systems-based interventions targeted at improving the mental health and wellbeing of children, adolescents, and young adults in the Australian Capital Territory (ACT). We assessed eight interventions for children and young people (aged ≤25 years) with low, moderate, and high-to-very-high psychological distress: technology-enabled integrated care, emergency department-based suicide prevention, crisis response service, family education programme, online parenting programme, school-based suicide prevention programme, trauma service for youths, and multicultural-informed care. We developed a system dynamics model for the ACT through a participatory process and calibrated the model with historical data, including population demographics, the prevalence of psychological distress, and mental health services provision. We calculated incremental cost-effectiveness ratios compared with business as usual for cost (AU$) per: quality-adjusted life-year (QALY), suicide death avoided, self-harm related hospital admissions avoided, and mental health-related emergency department presentation, using a 10-year time horizon for health-care and societal perspectives. We investigated uncertainty through probabilistic sensitivity analysis and deterministic sensitivity analysis, including using a 30-year timeframe. From a societal perspective, increased investment in technology-enabled integrated care, family education, an online parenting programme, and multicultural-informed care were expected to improve health outcomes (incremental QALYs 4517 [95% UI -3135 to 14 507] for technology-enabled integrated care; 339 [91 to 661] for family education; 724 [114 to 1149] for the online parenting programme; and 137 [88 to 194] for multicultural-informed care) and reduce costs ($-91·4 million [-382·7 to 100·7]; $-12·8 million [-21·0 to -6·6]; $-3·6 million [-6·3 to 0·2]; and $-3·1 million [-4·5 to -1·8], respectively) compared with business as usual using a 10-year time horizon. The incremental net monetary benefit for the societal perspective for these four interventions was $452 million (-351 to 1555), $40 million (14 to 74), $61 million (9 to 98), and $14 million (9 to 20), respectively, compared with business as usual, when QALYs were monetised using a willingness to pay of $79 930 per QALY. Synergistic effects are anticipated if these interventions were to be implemented concurrently. The univariate and probabilistic sensitivity analyses indicated a high level of certainty in the results. Although emergency department-based suicide prevention and school-based suicide prevention were not cost effective in the base case (41 QALYs [0 to 48], incremental cost $4·1 million [1·2 to 8·2] for emergency department-based suicide prevention; -234 QALYs [-764 to 12], incremental cost $90·3 million [72·2 to 111·0] for school-based suicide prevention) compared with business as usual, there were scenarios for which these interventions could be considered cost effective. A dedicated trauma service for young people (9 QALYs gained [4 to 16], incremental cost $8·3 million [6·8 to 10·0]) and a crisis response service (-11 QALYs gained [-12 to -10], incremental cost $7·8 million [5·1 to 11·0]) were unlikely to be cost effective in terms of QALYs. Synergistic effects were identified, supporting the combined implementation of technology-enabled integrated care, family education, an online parenting programme, and multicultural-informed care. Synergistic effects, emergent outcomes in the form of unintended consequences, the capability to account for service capacity constraints, and ease of use by stakeholders are unique attributes of a system dynamics modelling approach to economic evaluation. BHP Foundation.

Optimal stop-loss rules in markets with long-range dependence

Stop-loss is a common risk management tool for limiting risks and improving trading strategy performance. The effectiveness of stop-loss depends critically on asset price characteristics. This study is the first to analyze stop-loss strategy incorporating long-range dependence of asset prices through a fractional Brownian motion-based market model. It is shown that stop-loss strategy yields a positive return premium over the buy-and-hold return when asset price exhibits long-range dependence. The efficacy of stop-loss strategies and the determining criterions are investigated through both theoretical analysis and simulation studies. The performance of a stop-loss rule depends on the Hurst parameter, mean and volatility of the asset returns. The optimal stop-loss threshold model in a chosen strategy class is fitted by polynomial regression. Empirical analysis demonstrates that the class-specific optimal rules outperform stop-loss rules under alternative asset return-generating models.

Analisis Peluang Investasi Dana Haji Pada Industri Halal Di Indonesia

Hajj Financial Investment is an activity that involves placing the financial resources of the Hajj Financial Management Agency in business activities that are not contrary to sharia principles and applicable laws and regulations. The purpose of this activity is to obtain returns after thinking about in-depth research on the risks and benefits that can be obtained from these business activities. The purpose of this study is to analyze opportunities for the use of Hajj funds in the halal industry sector. To collect data, this research uses a qualitative descriptive method consisting of conducting interviews and documenting the results. The results showed that investment of Hajj funds in the Halal industry has a lot of potential and opportunities are very large because the halal industry has many development opportunities. This is supported by Indonesia's Muslim population of 237.55 million. The halal industry is one of the best alternative investment instruments because it is productive and sustainable. Investment strategies in the halal industry can be carried out by collaborating with halal industry executors in Indonesia in the Halal Food, Halal Travel and Muslim Fashion sectors, which are leading sectors of the global industry. BPKH also faces various risks that cannot be separated from the management of Hajj finances, therefore risk management is one of the most fundamental aspects that need to be considered in the investment of Hajj funds by BPKH.

Comparative Analysis of Portfolio Performance, Risk and Return of Cryptocurrencies (Bitcoin), Stocks and Gold as Alternative Investments in the Digital Age

In this study, portfolio performance, risk, and return are compared between the cryptocurrency Bitcoin and equities and gold as alternative investments in the digital age. This type of quantitative study uses comparative approaches. Monthly closing price data was located online or on websites for the secondary data used in this study. The saturation sampling approach was used to get 180 data from the sampling of samples. The analytical approach utilized with the SPSS 26.0 for Windows application comprises quantitative analysis, normality testing, homogeneity testing, and hypothesis testing. The study’s findings reveal that: (1) the returns offered by bitcoin, IDX30 shares, and Antam gold are not significantly different; (2) the risks offered by bitcoin, IDX30 shares, and Antam gold have significant differences; (3) the performance offered by bitcoin. There are significant differences between IDX30 shares and Antam gold with the Sharpe method; and (4) the performance offered by bitcoin, IDX30 shares, and Antam gold with the Treynor method has a significant difference.
 Keywords: cryptocurrency, investment, portfolio performance, stock, gold, risk, return

Modeling financial leasing by optimal stopping approach

Leasing valuation is a topic that has aroused considerable interest in business circles. This paper examines leasing from the point of view of the lessor who can decide to leave the contract due to default. We analyze in introducing a model in which the lessor decides whether or not to terminate the contract at a given point in time, comparing it with the cost of capital of alternative investments. The proposed model is stochastic, and it is strongly based on correlated random walks, making it more adaptable to real-world circumstances. Furthermore, we propose a recombinant binomial tree based on correlated random walks, performing numerical simulations starting from CIR and Vasicek models. We will point out that as the rate of cost of capital of an alternative investment increases, the optimal boundary curve decreases, so the lessor leaves, while as the past interest rates increases, the curve rises and the lessor will have a concrete interest in maintaining the contract.