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 to obvious but it re-enforces your understanding as you take the test each time.
1. What are the main characteristics of the distribution phase of life?






2. As wealth increases...






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






4. What should an investor use in mean-variance optimization






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






6. How is demand for insurance affected by risk tolerance - financial wealth - probability of death - age - and bequest desire?






7. What is mortality risk?






8. psychological profiling






9. As desire to leave an estate increases...






10. What are the main characteristics of the accumulation phase of life?






11. characteristics of spontaneous investor






12. What are the four broad categories of investor personality types (BB&K)?






13. What is the most common estate planning tool?






14. What are the diffferent types of tax jurisdictions?






15. What is core capital?






16. benefits of IPS to manager






17. What are the benefits of an IPS to the client?






18. stages of life






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






20. What are the disadvantages of completion portfolios for low basis stock?






21. Why would someone want to use a valuation discount?






22. What are typical characteristics of active wealth creators?






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






24. What are the disadvantages of hedging for low basis stock?






25. Describe asset segregation in a behavioral finance context.






26. What are wealth taxes.






27. Equation for total wealth.






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






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






30. What are wealth taxes.






31. Describe the different types of double taxation conflicts.






32. What are the disadvantages of an outright sale of low basis stock?






33. Describe the equity holding life three stages from the perspective of the stock.






34. What are the advantages of private exchange funds for low basis stock?






35. An investor's willingness to take risk is determined by what?






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






37. What are the disadvantages of private exchange funds for low basis stock?






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






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






40. What are the general legal and regulatory considerations for individuals?






41. What are the benefits of an IPS to the adviser?






42. typical IPS elements






43. characteristics of individualist investor






44. What is human capital?






45. characteristics of individualist investor






46. What are investment objectives and constraints?






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






48. What is measure of wealth?






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






50. What is intestate?