NO.PZ202206260100000404
问题如下：
Thompson’s comments to Taylor regarding the evaluation of alternative investments are least likely appropriate with regard to:选项：
A.benchmarks for private investments. B.valuation and risk of alternative investments. C.the need to monitor managers and investment processes.解释：
SolutionB is correct. Infrequent pricing (in this case, quarterly) can make it difficult to measure volatility and correlation because too few observations are available. Furthermore, stale pricing and the use of appraisals for valuation lead to smoothing effects (swings in market values are muted), which in effect understates return volatility and reduces measured return correlations with publicly traded assets, making the diversification benefits of alternative assets seem better than they actually are. Efforts must be made to correct for these biases when measuring the performance of alternative investments.
A is incorrect. Although no benchmark for alternative investments is perfect, the ones identified by Taylor are in keeping with industry practice and appropriate given the nature of the investments (nonventure for private equity and direct lending for private credit).
C is incorrect. With alternative investments, investors do need to pay attention to numerous aspects of the investment process, including key-person risk, conflicts of interest between the general partner and the investor, style drift, client and asset turnover, reliability of service providers, and so on. In general, investors do not need to monitor the manager or the investment process when investing in publicly traded assets because these tend to be more transparent and more highly regulated.
麻烦老师讲下这道题，谢谢
