CFA Practice Question

There are 191 practice questions for this study session.

CFA Practice Question

Which statements are true?

I. Public equity markets are much larger than private equity markets.
II. Public equity securities are more liquid than private equity securities.
III. Private equity funds are more likely to challenge the way businesses are run and improve the operations of these businesses.
Correct Answer: I, II and III

User Contributed Comments 1

User Comment
ascruggs92 I is a bit too vague. If by "market" are referring to actual exchanges like the NYSE, then it is true. If by "Public Equity" and "Private Equity" they are referring to firms dedicated to buying and selling public equity vs. private equity, then sure, that is right. However, I inferred "market" as the number and value of assets and available for exchange, in which case, the private market it multiple times bigger than the public equity market. It is not as liquid, obviously, but that doesn't mean it's not there.
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