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 (A)</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 (D)</p> Signup and view all the answers

What is the benefit of diversifying your portfolio?

<p>All of the above (D)</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 (C)</p> Signup and view all the answers

What is the main benefit of investing in Alpha Pools?

<p>Building a highly diversified portfolio (D)</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 (C)</p> Signup and view all the answers

What is it difficult to predict in the crypto space?

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

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