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






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






3. What are the different stages of life?






4. four types of investors






5. benefits of IPS to client






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






7. template for return objective






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






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






10. As wealth increases...






11. situational profiling - considerations






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






13. What are the advantages of public exchange funds for low basis stock?






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






15. Describe a cautious investor personality type.






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






17. 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?






18. characteristics of maintenance phase






19. What is tax alpha?






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






21. characteristics of individualist investor






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






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






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






25. What is loss aversion?






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






27. What are the different stages of life?






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






29. What is the most common estate planning tool?






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






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






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






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






34. As age increases..






35. benefits of IPS to manager






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






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






38. characteristics of distribution phase






39. What are the main characteristics of fixed annuities?






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






41. What is loss aversion?






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






43. sources of wealth






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






45. What is the most common estate planning tool?






46. What is measure of wealth?






47. characteristics of foundation stage






48. Describe the different types of double taxation conflicts.






49. Describe biased expectations in a behavioral finance context.






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