Reason must be explained.

Camille, a recent GBS MBA graduate specializes in alternative investments at Alternative Asset Management (AAM), a rapidly expanding asset management firm based in downtown Geneva City. She has been asked by another portfolio manager at the firm for assistance in selecting one or two alternative asset classes to add to an existing foundation portfolio. The portfolio has a traditional 70/30 Stock/bond allocation. Camille questions the manager further and then summarizes the key points from their discussions: 3.1 The goal is to add significant risk reduction through portfolio diversification. We should pick asset classes with distinct characteristics to reach this goal. 3.2 Liquidity is important in this foundation because we are often called upon to liquidate assets to fund unpredictable "one time distributions." We have had to do this several times. Then, we eventually receive contributions that build up portfolio value again, though that can be years later. 3.3 There is also significant decision risk. The client will tell us one thing and expect us to act on it, but then forget what they told us a few years later if things don't work out. 3.4 The client has suggested real estate (RE) is an obvious asset class to add. We should run some simulations using historical data to see how the addition of RE would likely affect portfolio results. 3.5 The perpetual nature of the foundation makes inflation hedging an important consideration. 3.6. If Camille chooses to invest in a newly formed limited partnership that makes direct investments in real estate, the general partner will most likely: (5% Marks) A. Share in the upside but not downside results of subsequent performance. B. Impose a lock-up period during which the foundation cannot redeem its investment. C. Expect full payment for the investment at the launch of the partnership. Camille, a recent GBS MBA graduate specializes in alternative investments at Alternative Asset Management (AAM), a rapidly expanding asset management firm based in downtown Geneva City. She has been asked by another portfolio manager at the firm for assistance in selecting one or two alternative asset classes to add to an existing foundation portfolio. The portfolio has a traditional 70/30 Stock/bond allocation. Camille questions the manager further and then summarizes the key points from their discussions: 3.1 The goal is to add significant risk reduction through portfolio diversification. We should pick asset classes with distinct characteristics to reach this goal. 3.2 Liquidity is important in this foundation because we are often called upon to liquidate assets to fund unpredictable "one time distributions." We have had to do this several times. Then, we eventually receive contributions that build up portfolio value again, though that can be years later. 3.3 There is also significant decision risk. The client will tell us one thing and expect us to act on it, but then forget what they told us a few years later if things don't work out. 3.4 The client has suggested real estate (RE) is an obvious asset class to add. We should run some simulations using historical data to see how the addition of RE would likely affect portfolio results. 3.5 The perpetual nature of the foundation makes inflation hedging an important consideration. 3.6. If Camille chooses to invest in a newly formed limited partnership that makes direct investments in real estate, the general partner will most likely: (5% Marks) A. Share in the upside but not downside results of subsequent performance. B. Impose a lock-up period during which the foundation cannot redeem its investment. C. Expect full payment for the investment at the launch of the partnership