FlexiQuiz - QAI - Module #1 Quiz

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

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

It offers guaranteed high returns on real estate investments.

It provides complete ownership of a property.

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

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

Low correlation to public markets

High liquidity

Low risk

High correlation to public markets

3. 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.

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

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.

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

Venture Capital

Collectibles

Private Debt

Real Estate Tokens

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

10-15%

30-35%

5-10%

20-25%

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

Traditional Assets

Conventional Assets

Alternative Assets

Public Assets

7. What is the primary objective of crowdfunding capital?

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

Soliciting large investments from institutional investors

Investing in publicly traded companies

Raising capital for established businesses

8. 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 less regulated.

Private capital investments are heavily regulated by the SEC.

Public capital investments are more liquid.

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

To diversify their portfolio and potentially enhance returns

To access highly regulated markets

To minimize returns and increase risk

To reduce the lock-up period for investments

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

Publicly traded stocks

Private company stock

Cryptocurrencies

Exchange Traded Funds (ETFs)

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