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Private Equity Tut
Private Equity Tut
1. Which of the following statements is true about the regulation of alternative investments
compared to traditional investments?
c) Both alternative and traditional investments have the same level of regulation.
2. Why might some investors choose to include alternative investments in their portfolio?
d) Because alternative investments can provide diversification and potentially higher returns.
b) Non-profit organizations
d) Government agencies
5. What is a key advantage of growth equity investments over early-stage venture capital
investments?
a) Potential Privatization
b) Debt-Financing
c) Minority Stakes
d) Emphasis on restructuring
7. What is one of the potential benefits of investing in distressed companies that have successfully
recovered?
8. Which type of partner in a private equity partnership has unlimited personal liability for the
partnership's debts?
a) Limited partners
b) General partners
9. During which phase of the "J-Curve" are returns in private equity investments expected to spike
significantly?
a) Years 1-3
b) Years 3-5
c) Years 5-10
c) High liquidity
a) Listed equity has high liquidity, while private equity has low liquidity
d) Listed equity has low liquidity, while private equity has high liquidity