- CFA Exams
- CFA Level I Exam
- Topic 8. Alternative Investments
- Learning Module 3. Investments in Private Capital: Equity and Debt
- Subject 1. Private Equity Investment Characteristics
CFA Practice Question
The investment a venture capitalist makes in a portfolio company is:
II. subject to a high degree of uncertainty.
I. long-term.
II. subject to a high degree of uncertainty.
Correct Answer: I and II
Unlike a public market investment, a venture capital investment is highly illiquid. Venture capital investments are generally made in businesses where there is a great deal of uncertainty as to their ultimate success.
User Contributed Comments 0
You need to log in first to add your comment.