NO.PZ2023041004000068
问题如下：
Snyder and Clark are meeting to discuss the family’s possible interest in private equity investing.Snyder begins the meeting by asking about the risks and costs of private equity investing.
Clark acknowledges that private equity contains risk factors and cost considerations that are less prevalent than those in public equities. One risk factor is illiquidity, since private equity investments are not traded on an active secondary market. Thus, an important consideration is the timing of exits relative to a private equity investor’s time horizon. Another risk factor is diversification. Because of the highly concentrated nature of a typical private equity fund, investors have little opportunity to benefit from diversification. A cost consideration is management fees; private equity is generally regarded as being more costly than public mutual funds and ETFs. Both types of funds charge administrative costs as a percentage of an investment’s net asset value.
Clark’s explanation of private equity risks and costs is least likely correct with respect to:
选项：
A.illiquidity. B.diversification. C.management fees.解释：
Clark’s example regarding diversification is incorrect. Private equity investors are able to diversify their private equity investments via a mix of different vintage portfolio companies at different stages of development and by investing across various private equity strategies, such as large and mid-market buyouts, venture capital, mezzanine finance, and restructuring.one of the risk in PE is lack of diversification, why diversification is incorrect? And management fee is based on paid-in-capital rather than NAV, right?
