SIE (Securities Industry Essentials) Practice Exam

Direct Participation Programs (DPPs) provide investors with exposure to non-correlated assets. This means that DPPs invest in assets that have little to no correlation to traditional financial markets, making them a potential hedge against market volatility. Options A and B are incorrect because DPPs do not offer a fixed rate of return nor do they guarantee liquidity. Option D is also incorrect because DPPs are not exempt from taxes, although they may provide certain tax advantages in some cases. Therefore, the best answer is C, as it accurately reflects the main benefit of investing in DPPs.