Portfolio Diversification Quiz
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Questions and Answers

What should you do to protect your portfolio from potential losses?

  • Invest in Alpha Pools
  • Invest in managed index portfolios
  • Diversify across many different tokens (correct)
  • Invest in a few positions
  • What is a good approach to diversifying your portfolio?

  • Investing in Alpha Pools
  • Investing in managed index portfolios
  • Establishing a percentage allocation to each component and re-balancing over time (correct)
  • Investing in a few positions
  • What is the risk of having a portfolio consisting of only a few positions?

  • Not being able to diversify
  • Not being able to capture profits
  • Not being able to increase exposure
  • Losing a significant portion if something goes wrong (correct)
  • What should you consider when deciding how to diversify your portfolio?

    <p>Matching your level of conviction in positions with your intended allocation</p> Signup and view all the answers

    What should you do if you don't have enough time to research enough tokens?

    <p>Invest in Alpha Pools</p> Signup and view all the answers

    What is the benefit of diversifying your portfolio?

    <p>All of the above</p> Signup and view all the answers

    What is the main risk associated with a single token?

    <p>Losing a significant portion if something goes wrong</p> Signup and view all the answers

    What is the main benefit of investing in Alpha Pools?

    <p>Building a highly diversified portfolio</p> Signup and view all the answers

    What should you do to ensure that no one position makes up too much of your portfolio value?

    <p>Establish a percentage allocation to each component and re-balance over time</p> Signup and view all the answers

    What is it difficult to predict in the crypto space?

    <p>All of the above</p> Signup and view all the answers

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