Which of the Following Are True Statements

question 3

Multiple Choice

Which of the following are true statements?
I.Venture capitalists generally have an exit strategy.
II.Venture capitalists tend to specialize in one type of financing for a select type of firm.
III.Venture capitalists tend to be long-term investors in a firm.
IV.Venture capital is relatively easy to obtain for most new firms.

• A)I and II only
• B)III and IV only
• C)I and III only
• D)I and IV only
• E)II and IV only

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Definitions:

Spot Price

The prevailing market rate where a specific asset, including commodities, currencies, or securities, can be purchased or sold for prompt distribution.

Loss

The reduction in the value of an investment or the difference between the purchase price and the lower selling price.

Basis Risk

The risk that the price of a futures contract may not move in tandem with the price of the underlying asset, leading to potential losses in a hedging strategy.

Basis

The spot price minus the futures price.