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D. pending
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NEW QUESTION: 3
Which of the following is the most valid argument for including venture capital investments in a traditional multi-asset class portfolio?
A. Venture capital investments tend to have low correlations with other asset classes.
B. Venture capital investments are managed by professionals who have successful track records in managing businesses.
C. Venture capital investments tend to offer high risk-adjusted returns.
Answer: A
Explanation:
Venture capital is a separate asset class, and exhibits low correlations with other traditional asset classes. Therefore, venture capital offers potential for further diversification for a traditional assets portfolio. Venture capital investments are highly risky- more than 10% of them lose 100% of their values.
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