"Alternative Investments":venture capital investments

C is correct. Over the long term, commodity prices are closely related to inflation, so including commodities in a portfolio of equities and bonds will reduce its exposure to inflation. 

A is incorrect because commodities have low correlations with traditional securities and therefore reduce overall risk. 

B is incorrect because commodity investments tend to produce no current income.

C is correct. The historical standard deviations of annual return for venture capital are higher than that of common stocks. Investors should therefore require a higher return in exchange for accepting this higher risk, along with the illiquidity of venture capital investing. 

A is incorrect because the venture capital strategy typically invests in start-up or early stage companies, not later stage companies.

B is incorrect because venture capital investments require long time horizons.