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F317 QAI FINAL EXAM | 256 QUESTIONS | WITH ACTUAL ANSWERS!!
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F317 QAI FINAL EXAM | 256 QUESTIONS | WITH ACTUAL ANSWERS!!
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F317 QAI FINALEXAM | 256
QUESTIONS |
WITH ACTUAL
ANSWERS!!
Evatee 10/22/24 F317 QAI
,F317 QAI FINAL EXAM | 256 QUESTIONS |
WITH ACTUAL ANSWERS!!
Why do sophisticated investors often allocate capital to private investments?
Answer - to diversify their portfolio and potentially enhance returns
which attribute of private capital investments makes them particularly
attractive for portfolio diversification? Answer - low correlation to public
markets
what is the primary advantage of real estate tokenization? Answer - it
eliminates the need for investors to purchase an entire property
What percentage of assets under management (AUM) do institutional investors
typically allocate to private capital investments? Answer - 10-15%
What is the primary objective of crowdfunding capital? Answer - Raising
capital for early-stage ventures through small investments from individuals
What distinguishes a hard lock-up period from a soft lock-up period in private
capital investments? Answer - Hard lock-up prohibits any withdrawals, while
soft lock-up allows withdrawals with a liquidity fee
What is the investment type that focuses on enhancing the value of privately
held companies? Answer - Venture capital
What is the key difference between public capital and private capital
investments? Answer - public capital investments are more liquid
,Which of the following is an example of an illiquid asset? Answer - private
company stock
what is another term commonly used to describe investments in private
capital? Answer - alternative assets
What does the SEC primarily regulate in terms of securities offerings? Answer -
both public and private offerings
what is the primary role of the US securities and exchange commission (SEC)?
Answer - protecting investors, maintaining fair markets, and facilitating capital
formation
what is the maximum amount a company can raise in a Reg CF offering within a
12-month period? Answer - $5 million
what is the primary purpose of the howey test in securities regulation? Answer
- to determine if an investment is a security
which of the following is NOT one of the elements of the howey test used by
the SEC to determine whether an investment is a security? Answer - direct
ownership by investors
what is the primary purpose of regulation D under the SEC's regulations?
Answer - to allow capital raising without the need for SEC registration
which of the following is NOT a risk associated with investing in private
companies? Answer - high disclosure requirements
, what is the primary factor that distinguishes private investments from public
investments? Answer - liquidity
which of the following investments is NOT considered a security under the
Howey test? Answer - real estate
under rule 506(b) of regulation D, how many non-accredited investors can
participate in a securities offering within a 90-calendar-day period? Answer -
up to 35
what is the main purpose of state securities laws, often referred to as 'blue sky
laws'? Answer - protecting investors against fraudulent sales practices and
activities
who can invest up to 10% of their annual income or net worth in regulation
crowdfunding (reg CF) offerings? Answer - both accredited and non-accredited
investors
what is the maximum amount a company can raise in a tier 2 regulation A (reg
A) offering within a 12-month period? Answer - $75 million
according to the principles mentioned, what is the perceived benefit of
diversification within asset classes? Answer - it reduces the risk associated
with the failure of any one
Private investor A (PIA) invests $5,000 in startup X. Three years later, Startup X
is acquired and PIA receives $25,000 (5x return). PIA's long-term capital gain on
the sale is Answer - $20,000
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