Finance Unbox-ED ($) - Grade 3-5 - Session 024 - Quiz 1

Select the statement that is true

• VC funds invest in early stage companies or start-ups
• PE funds invest in established companies
• Both of the above
• None of the above

Investors in VC and PE funds are in most cases individual investors

• True
• False

VC and PE funds invest in over a dozen companies from each fund and hence there is some diversification

• True
• False

VC and PE funds stay invested in companies for several years and hence is considered a long-term investment!

• True
• False

Institutional investors can get their money back from VC and PE funds at short notice or whenever they like

• True
• False

Select all the statements that are true about VCs and PEs

• Charge a management fee every year on the fund
• Retain a certain portion of the profits on investments
• Both of the above
• None of the above

Investment in a VC fund has the same risk as investment in a PE fund

• True
• False

VC funds in USA are on average around ten times the size of a PE fund

• True
• False

Select all the ways in which hedge funds are similar to VC and PE funds

• Raise funds from institutional investors
• Invest across multiple asset classes
• Both of the above
• None of the above

Select all the ways in which hedge funds are different than VC and PE funds

• Charge both management and performance fees
• Make both short-term and long-term investments
• Both of the above
• None of the above