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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 are the equity holding life risk attributes for an entrepreneur?






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






3. What are the main characteristics of chritable gifts?






4. If human capital is equity-like/fixed-income like - how should you generally allocate financial assets?






5. sources of wealth






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






7. characteristics of foundation stage






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






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






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






11. What are the main characteristics of variable annuities?

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12. What is loss aversion?






13. How is mortality risk typically hedged?






14. What is human capital?






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






16. What is HIFO accounting?






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






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






19. Human capital is sometimes referred to as what?






20. What is the reinvestment caveat when considering tax loss harvesting?






21. Investor questionnaires help to determine what?






22. typical IPS elements






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






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






25. Describe biased expectations in a behavioral finance context.






26. What are the different stages of life?






27. characteristics of methodical investor






28. What are the advantages of an outright sale of low basis stock?






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






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






31. What are the main characteristics of fixed annuities?

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32. What are the diffferent types of estate ownership rights?

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






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






35. What is HIFO accounting?






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






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






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






39. 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?






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






41. Describe an individualistic investor personality type.






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






43. psychological profiling






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

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45. What are the different types of trusts?






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






47. characteristics of maintenance phase






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






49. What is tax alpha?






50. benefits of IPS to manager