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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 to obvious but it re-enforces your understanding as you take the test each time.
1. What is measure of wealth?






2. What are the main characteristics of the distribution phase of life?






3. What are the psychological issues of low basis stock held by an entrepreneur?






4. 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?






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






6. What are wealth taxes.






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






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






9. characteristics of cautious investor






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






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






12. What is another name for a variable prepaid forward and What is its main purpose?






13. What are ways that individuals can avoid probate?






14. What is measure of wealth?






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






16. Any amount above core capital is considered what?






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






18. An investor's ability to take risk depends on what?






19. What is the most common estate planning tool?






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






21. Equation for total wealth.






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






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






24. Living expenses in retirment can be referred to as what?






25. What is loss aversion?






26. What are the different types of trusts?






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






28. Define tax drag.






29. As wealth increases...






30. What is the person called that transfers assets through a will?






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






32. What are the diffferent types of tax jurisdictions?






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






34. What is mortality risk?






35. Living expenses in retirment can be referred to as what?






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






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






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






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






40. What are the main characteristics of fixed annuities?






41. characteristics of foundation stage






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






43. What are the two sources of wealth?






44. What are the main types of investors?






45. What is the person called that transfers assets through a will?






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






47. What are the advantages of hedging for low basis stock?






48. benefits of IPS to manager






49. What are the main types of investors?






50. Describe asset segregation in a behavioral finance context.