SIE - Securities Industry Essentials Exam
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A portfolio contains: 20% Oil and gas partnership DPPs; 30% Non-listed REITs; 50% Hedge funds. Which of the following risks is present in this portfolio?
Credit Risk
A
Political Risk
B
Liquidity Risk
C
Nonsystematic Risk
D
Explanations
DPPs, Non-Listed REITs and Hedge funds are particularly illiquid. This portfolio contains liquidity risk.