SIE practice questionhardPrivate Equity
A primary risk associated with private equity investing is:
- AIlliquidity and long holding periods✓ Correct answer
- BDaily price volatility on exchanges
- CGuaranteed principal loss
- DMandatory daily reporting requirements
Explanation
Why A — Illiquidity and long holding periods
Private equity is illiquid with a long lockup. Daily volatility and reporting are not features, nor is guaranteed loss.
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