Explanation:

• Option A is incorrect because alternative assets are typically less efficiently priced than traditional marketable securities. This inefficiency provides opportunities for active management to exploit market anomalies.

• Option B is correct. Alternative investments often involve illiquidity, transactions in private markets, or sophisticated strategies, distinguishing them from traditional long-only investments in stocks, bonds, and cash.

• Option C is incorrect because alternative investments generally have a low correlation of returns with traditional investments, which is one of their key benefits for portfolio diversification.