Yusef is a high-net-worth individual who wants to diversify his portfolio with private equity but...

Vendor: CSI
Product: CSC2
Update on: Aug 21, 2026
Questions: 232

CSI CSC2 Question Answer

Yusef is a high-net-worth individual who wants to diversify his portfolio with private equity but is concerned with the potential disadvantages of this asset class. What disadvantage should Yusef be considering as a potential private equity investor?

Private equity excludes investment from private debt

Private equity companies are not listed on stock exchanges

Private equity is a high-risk investment

Private equity typically provides lower long-term returns than other asset classes