FlexiQuiz - QAI - Module #1 Quiz

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

30-35%

10-15%

5-10%

20-25%

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

Private company stock

Publicly traded stocks

Cryptocurrencies

Exchange Traded Funds (ETFs)

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

To access highly regulated markets

To diversify their portfolio and potentially enhance returns

To minimize returns and increase risk

To reduce the lock-up period for investments

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

Conventional Assets

Traditional Assets

Alternative Assets

Public Assets

5. What is the primary objective of crowdfunding capital?

Soliciting large investments from institutional investors

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

Investing in publicly traded companies

Raising capital for established businesses

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

Collectibles

Venture Capital

Private Debt

Real Estate Tokens

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

It offers guaranteed high returns on real estate investments.

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

It provides complete ownership of a property.

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

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

Public capital investments are less regulated.

Private capital investments are open to the general public.

Private capital investments are heavily regulated by the SEC.

Public capital investments are more liquid.

9. What distinguishes a hard lock-up period from a soft lock-up period in private capital 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.

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.

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

High liquidity

Low correlation to public markets

Low risk

High correlation to public markets

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