FlexiQuiz - QAI - Module #1 Quiz

1. Which attribute of private capital investments makes them particularly attractive for portfolio diversification?

Low risk

High correlation to public markets

High liquidity

Low correlation to public markets

2. What is the key difference between public capital and private capital investments?

Private capital investments are heavily regulated by the SEC.

Public capital investments are more liquid.

Public capital investments are less regulated.

Private capital investments are open to the general public.

3. What distinguishes a hard lock-up period from a soft lock-up period in private capital investments?

Hard lock-up allows withdrawals with a liquidity fee, while soft lock-up prohibits any withdrawals.

Soft lock-up is only applicable to real estate investments.

Hard lock-up prohibits any withdrawals, while soft lock-up allows withdrawals with a liquidity fee.

Hard lock-up is longer in duration than a soft lock-up.

4. What is the primary objective of crowdfunding capital?

Investing in publicly traded companies

Raising capital for established businesses

Soliciting large investments from institutional investors

Raising capital for early-stage ventures through small investments from individuals

5. Which of the following investment types focuses on enhancing the value of privately held companies?

Private Debt

Real Estate Tokens

Collectibles

Venture Capital

6. What is the primary advantage of real estate tokenization?

It provides complete ownership of a property.

It reduces the lock-up period for real estate investments.

It offers guaranteed high returns on real estate investments.

It eliminates the need for investors to purchase an entire property.

7. What is another term commonly used to describe investments in private capital?

Alternative Assets

Public Assets

Conventional Assets

Traditional Assets

8. Why do sophisticated investors often allocate capital to private investments?

To minimize returns and increase risk

To reduce the lock-up period for investments

To access highly regulated markets

To diversify their portfolio and potentially enhance returns

9. What percentage of assets under management (AUM) do institutional investors typically allocate to private capital investments?

5-10%

20-25%

30-35%

10-15%

10. Which of the following is an example of an illiquid asset?

Cryptocurrencies

Exchange Traded Funds (ETFs)

Private company stock

Publicly traded stocks

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