Test your basic knowledge |

Private Wealth Management

Instructions:
  • Answer 50 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Describe the different types of double taxation conflicts.






2. What are the different methods of relief from double taxation?






3. What is HIFO accounting?






4. four types of investors






5. psychological profiling






6. psychological profiling






7. What are the problems that financial advisers can face with low basis stock?






8. Any amount above core capital is considered what?






9. What is the general relationship b/t a client's perception of wealth and risk willingness?






10. Describe a spontaneous investor personality type.






11. Describe a cautious investor personality type.






12. Describe a cautious investor personality type.






13. What is the general relationship between tax drag% and tax rate when capital gains taxes are deferred and B=1; and as investment horizon increases and return increases?






14. In contrast to standard finance (MPT) - behavioral finance assumes individuals do what?






15. What are the main characteristics of fixed annuities?


16. What are the different retirment risks and how can they be hedged?






17. benefits of IPS to manager






18. What are the advantages of the monte carlo approach to portfolio construction?






19. When calculating a required return - you typically must identify what?






20. What are the 3 categories of investors when discussing concentrated positions?






21. What progressive tax regimes do not have favorable treatment for interest income/dividend income/capital gains?






22. Describe a methodical investor personality type.






23. What are the main characteristics of variable annuities?


24. What is the most common estate planning tool?






25. What is the eifference in willingness to take risk between active and passive wealth creators?






26. Generally - how does portfolio size - liquidity - time horizon - and/or importance of spending affect ability to tolerate risk?






27. What happens to both tax drag $ and tax drag % with holding period changes and return changes?






28. Why do individuals often take steps to avoid probate?






29. What is the general relationship between tax drag% and tax rate with accrual taxes; and as investment horizon increases and return increases?






30. What are the different stages of life?






31. What are the diffferent types of tax jurisdictions?






32. typical IPS elements






33. stages of life






34. What are the disadvantages of public exchange funds for low basis stock?






35. What are the different types of trusts?






36. What are the advantages of completion portfolios for low basis stock?






37. What are the main characteristics of fixed annuities?


38. What risks must be considered when discussing each concentrated investor category?






39. The client's risk tolerance (mostly willingness) is affected by what personal characteristics?






40. What is HIFO accounting?






41. What is core capital?






42. Investor questionnaires help to determine what?






43. sources of wealth






44. What are the advantages of the monte carlo approach to portfolio construction?






45. Calculating the required return component is driven by what 2 elements?






46. What is typically considered when imposing an exit tax?






47. What is loss aversion?






48. What are the equity holding life risk attributes for an investor?






49. All costs associated with probate are born by whom?


50. How is mortality risk typically hedged?