- CFA Exams
- CFA Level I Exam
- Topic 8. Alternative Investments
- Learning Module 2. Alternative Investment Performance and Returns
- Subject 1. Issues in Performance Appraisal
CFA Practice Question
True or False? A very small proportion of highly successful ventures generate most of the positive returns from venture capital investments.
Correct Answer: True
Approximately 50% of the gains from venture capital investments come from approximately 10% of the investments.
User Contributed Comments 4
| User | Comment |
|---|---|
| johntan1979 | I wonder what's the reference for these numbers and whether they are still relevant. |
| ankurwa10 | I think they are still relevant. throw 30 darts, one of them will stick. and given the IT boom these days and crazy valuations for snapchat, whatsapp etc, well, some darts surely have hit home. And oh, Alibaba too. |
| Inaganti6 | Peter Thiel wrote about this in a wonderful book named Zero To One |
| 923029 | pareto .... vital few .... meaningless many. [Horrible but true]. |