Alternative Investments Q76

0. If a quoted market price is available for an emerging market fixed income security, the use of liquidity discounts or “haircuts” is actually:

  • Option : B
  • Explanation : If a quoted market price is available for an emerging markets fixed income security, the use of liquidity discounts or “haircuts” is actually inconsistent with valuation guidance under most generally accepted accounting standards. However, many practitioners believe that liquidity discounts are necessary to reflect fair value.
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