CFA Practice Question

There are 191 practice questions for this study session.

CFA Practice Question

Which of the following is NOT a characteristic of a typical venture capital (VC) fund?
A. Long-term nature and difficulty in valuation of portfolio companies
B. Ease of liquidation due to a ready market for mergers and acquisitions
C. Existence of time cycles in availability of VC capital
Explanation: VC funds do not have ease of liquidity when exiting an investment.

User Contributed Comments 2

User Comment
samco A typical venture capital is not liquid, but can be long term funds(up to 10 years?) and difficult to value.
dlukas Typically a VC fund is looking to divest in 3-5 years max, which would be considered medium-term... so A) is questionable at best. But B) is clearly a lot more wrong.
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