- CFA Exams
- CFA Level I Exam
- Topic 8. Alternative Investments
- Learning Module 4. Real Estate and Infrastructure
- Subject 3. Infrastructure
CFA Practice Question
Direct investment in infrastructure has the following characteristics: I. high concentration risk.
II. greater control over the infrastructure assets.
III. low liquidity risk.
Correct Answer: I and II
It involves a large capital investment in a single project, resulting in high concentration risk and high liquidity risk. It provides greater control and the opportunity to capture full value.
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