Arbuckell

[caschas]

Hi all,
I don’t get why the exit strategy is not a major point in realising a return (the last question)?
I would have answered the “secondary market” question as this a part of how you will realise your profit.
Am I seeing things the right way?
Many thanks for the help,

 

[danv0330]

The question asks which is _least likely important.. the point is that exit strategy (among many) are not _as important as liquidity and time horizon when making an investment decision..
this one tripped me up also, its dumb honestly

 

[greyhound86]

All it’s talking about return objective, which is determined at the beginning of the investment process. The exit strategy is determined at the exit (end) of the PE investment and will be determined which one with create the highest return.

 

[ltj]

This was my worst topic test. I could have done better guessing at random. Whatever, on to the next one.

 

[greyhound86]

LTJ, the Topic Tests aren’t my favorite either. Keep in mind, (at least I’m pretty sure) the Topic Tests aren’t written by the CFA. So while they can help you test some of your knowledge don’t expect them to look exactly like the questions on test day.

 

[MrSmart]

They are a compilation of previous mock exams adjusted for the current material.

 

[ltj]

Yeah, pretty sure the CFAI writes them. I think I read that some of TTs were rejected past exam vignettes, but that could just be AF folklore.
It’s OK. I found them immensely helpful at L2, and glad I did them all this time too. Just was noting that I happened to perform terrible on this specific one.