Direct Participation Programs question

One more…

I haven’t seen any reference to non-correlated assets (though I get it) or steady returns in regard to DPPs. It looks like I better get more adept to inferring from the material and fast.

I do see now that I could of knocked out answer A as DPPs are illiquid but the other options aren’t as clear

That is a tough question (to me), and so is the SIE practice exam overall!

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Hi @Matthew! You’re totally right here.

This is a tough question, and it’s more about why A, C, and D are not the right answers. Many DPPs in the real world are non-correlated with the market, meaning they may make returns when the market is down or flat. This is especially true for RELPs (real estate limited partnerships) because real estate tends to have a bit of an inverse relationship with the stock market.

I’m currently writing material to introduce the idea of correlation to the SIE program. You’ll see that material soon!