Scan QR code or get instant email to install app
Question:
Returns on which of the following alternative investments are most likely to include a liquidity premium?
A
Private equity funds.
explanation
Investors require a liquidity premium for investments that are illiquid. Private equity funds are typically illiquid and may require lockup periods. Real estate investment trusts and exchange-traded funds are publicly traded and usually highly liquid.
Take more free practice tests for other PASSEMALL topics with our cfa level 1 exam now!
Related Information
Comments