Question 101 pts

If an LP wants to ensure that the GP does not use the new funds to rescue prior investments that have gone awry, then what type of restrictive covenant should the LP place on the fund?

Group of answer choices

Covenant on co-investment across funds

Covenant on size of the investment.

Covenant on co-investment by GPs themselves

Covenant on future fund-raising

Question 111 pts

When looking at the performance of a specific VC fund, holding period return is the best measure to monitor because holding period return assumes compounding rate of return.

Group of answer choices

True

False

Question 121 pts

What is one of the disadvantages of using IRR to evaluate performance of a VC fund?

Group of answer choices

It is money-weighted return.

It does not distinguish between realized and realized investment.

It is time-weighted return.

It does not have any disadvantages.

Question 131 pts

One of the assumptions of CAPM model is that investors are rewarded premium only for taking diversifiable risk because it can be diversified.

Group of answer choices

True

False

Question 141 pts

What is beta in CAPM model?

Group of answer choices

A measure of sensitivity of a stocks return to the return on market portfolio.

A measure of sensitivity of a stocks variance to the return on market portfolio.

A measure of excess return to market portfolio.

There is no beta in CAPM.