Private equity investments typically have:
A)a higher level of risk than most other investments.
B)a lower level of risk than most other investments.
C)30 per cent more risk than most other investments.
D)a similar risk to most other investments.

Question

Quizplus · Accepted Answer

Private equity investments are known for having a higher level of risk than most other investments due to their illiquidity, lack of transparency, and dependence on market conditions. Investors in private equity funds are usually looking for higher returns than they could achieve through public market investments, but they are also taking on more risk in exchange for those potential rewards.

Private Equity Investments Typically Have