SIE - Securities Industry Essentials Exam
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Hedge funds have lock-up periods in order to give the manager of the fund time to rebalance the portfolio and make other adjustments. During this time, the investment is
Liquid
A
Undervalued
B
Illiquid
C
Overvalued
D
Explanations
During the lockup period, redemptions cannot be made. This part of hedge funds makes the investment illiquid during the lockup period,