CFA Practice Question

There are 178 practice questions for this topic.

CFA Practice Question

The investment a venture capitalist makes in a portfolio company is:

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.

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