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Financial Risk Manager Part 2

Financial Risk Manager Part 2

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An investment analyst has been appointed to evaluate the risk premiums linked to the illiquidity of different asset classes. The purpose of this evaluation is to prepare an insightful report for the Chief Investment Officer (CIO) of a large university endowment fund, who is considering incorporating illiquid assets into the investment portfolio. Which of the following statements should the analyst accurately include in the report?

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