题目
Which of the following is true regarding private equity performance calculations?
选项
A.The money multiple calculation relies on the amount and timing of cash flows.
B.The IRR calculation involves the assumption of two rates.
C.Because private equity funds have low volatility, accounting conventions allow them to use a lagged mark-to- market process.
答案
B
解析
B is correct. The determination of an IRR involves certain assumptions about a financing rate to use for outgoing cash flows (typically a weighted average cost of capital) and a reinvestment rate assumption to make on incoming cash flows (which must be assumed and may or may not actually be earned).A is incorrect because the money multiple calculation completely ignores the timing of cash flows.C is incorrect because it is somewhat of a reversal of cause and effect: Private equity (PE) funds can appear to have low volatility because of the lag in their mark-to-market process. It’s not that PE investments don’t actually rise and fall behind the scenes with economic influences, but accounting conventions may simply leave longer-lived investments marked at their initial cost for some time or with only modest adjustments to such carrying value until known impairments or realization events begin to transpire. Also, because PE funds are not easily marked to market, their returns can appear somewhat smoothed, making them appear more resilient and less correlated with other assets than they really are. The slowness to re-mark them can unfortunately be confused by investors as an overall lack of volatility.：B是正确的。内部收益率的确定包括对用于现金流流出（通常为加权平均资本成本）的融资率的假设，以及对现金流流入（必须假设且可能赚取或可能不会赚取）的再投资率的假设。A是不正确的，因为货币倍数计算完全忽略了现金流的时间。C是不正确的，因为它在某种程度上是因果颠倒的：私募股权（PE）基金可能因为其按市值计价过程的滞后而表现出较低的波动性。这并不是说私募股权投资实际上不会随着经济影响而在幕后涨落，而是会计惯例可能只会让寿命较长的投资在一段时间内以初始成本计价，或者在已知的减值或变现事件开始发生之前，只对这些账面价值进行适度调整。此外，由于私募股权基金不容易按市值计价，它们的回报可能会显得较为平稳，使它们看起来更具弹性，与其他资产的相关性也比实际情况要小。不幸的是，投资者可能会把重新标记它们的缓慢程度混淆为总体缺乏波动性。