SIE practice questionmediumPrivate Equity
Private equity funds are best suited for which type of investor?
- AAccredited investors seeking long-term, illiquid investments✓ Correct answer
- BInvestors seeking daily liquidity and market pricing
- CRetail investors with a short time horizon
- DInvestors wanting guaranteed principal
Explanation
Why A — Accredited investors seeking long-term, illiquid investments
Private equity requires investors to be accredited with a tolerance for illiquidity and long holding periods. Retail, short-term, and principal-guaranteed investors are not appropriate.
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