NO.PZ202411040100000102
问题如下:
Q. Discuss how YYRPF likely assesses diversification potential when adding a new public equity position versus a new private equity position to its equity portfolio.选项:
解释:
Public equity positions have easily measured correlations with other public equity positions. As such, a lower correlation of a new public equity position may be viewed as providing better diversification potential. In contrast, the lack of observable market prices at regular intervals for private equity positions makes using correlations less plausible. Rather, the diversification potential of a private equity position may be a function of adding a company life cycle stage that is not typically available to public market equity investors, such as startup companies. Alternatively, private equity investments in buyout equity provide investors with the potential for benefiting from the transformation of a company’s business model over a longer investment life cycle, thus providing a return stream that is different from what may be available from mature public market investments.
YYRPF will assesses diversification potential of a new public equity position through correlation of observed periodic returns. For a new private equity position, the portfolio diversification potential is based on private equity's company and investment life cycle phase.