FlexiQuiz - QAI - Module #1 Quiz

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

Private capital investments are open to the general public.

Public capital investments are more liquid.

Private capital investments are heavily regulated by the SEC.

Public capital investments are less regulated.

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

Low correlation to public markets

High correlation to public markets

Low risk

High liquidity

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

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

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

It provides complete ownership of a property.

It offers guaranteed high returns on real estate investments.

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

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

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

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

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

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

10-15%

20-25%

5-10%

30-35%

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

To diversify their portfolio and potentially enhance returns

To reduce the lock-up period for investments

To minimize returns and increase risk

To access highly regulated markets

7. What is the primary objective of crowdfunding capital?

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

Raising capital for established businesses

Investing in publicly traded companies

Soliciting large investments from institutional investors

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

Venture Capital

Real Estate Tokens

Private Debt

Collectibles

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

Publicly traded stocks

Exchange Traded Funds (ETFs)

Cryptocurrencies

Private company stock

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

Traditional Assets

Public Assets

Alternative Assets

Conventional Assets

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