- CFA Exams
- CFA Level I Exam
- Topic 8. Alternative Investments
- Learning Module 1. Alternative Investment Features, Methods, and Structures
- Subject 3. Investment and Compensation Structures
CFA Practice Question
Venture capital investment performance depends heavily upon:
B. financial markets
C. both A and B.
A. real markets
B. financial markets
C. both A and B.
Correct Answer: C
Both markets have a significant impact on performance. Real markets largely control the earnings (and earnings potential) of the portfolio company, while financial markets influence the value placed on earnings (and earnings potential).
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