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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. What should an investor use in mean-variance optimization






2. Describe asset segregation in a behavioral finance context.






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






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






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






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






7. What is the difference between a deterministic approach and a monte carlo approach to portfolio construction?






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






9. What are typical characteristics of active wealth creators?






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






11. What are the two sources of wealth?






12. What is the difference b/t a required and desired return objective?

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13. When dealing with low basis stock - emotional issues can arise from what?






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






15. Describe an individualistic investor personality type.






16. How does the nature of human capital affect the demand for life insurance?






17. Describe the different types of double taxation conflicts.






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






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






20. What are the diversification techniques for low basis stock?






21. When should you use a tax-exempt versus a tax-deferred account?






22. stages of life






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






24. As wealth increases...






25. What is core capital?






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






27. What are investment objectives and constraints?






28. What are the main characteristics of the foundation phase of life?






29. What are typical characteristics of passive recipients of wealth?






30. benefits of IPS to client






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






32. characteristics of foundation stage






33. characteristics of spontaneous investor

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34. psychological profiling






35. typical IPS elements






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






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






38. sources of wealth






39. Who is responsible for gains/losses in a taxable (accrual taxation) account?






40. Describe biased expectations in a behavioral finance context.






41. four types of investors






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






43. characteristics of accumulation phase






44. Describe a cautious investor personality type.






45. characteristics of accumulation phase






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






47. What are the steps involved in creating an IPS?

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

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






50. What are the equity holding life risk attributes for an entrepreneur?