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 fixed annuities?






2. What are the two sources of wealth?






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






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






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






6. What are typical characteristics of active wealth creators?






7. Describe a cautious investor personality type.






8. characteristics of methodical investor






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






10. What is measure of wealth?






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






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






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






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






15. Describe a spontaneous investor personality type.






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






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






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






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






20. Equation for total wealth.






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






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






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






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






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






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






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






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






29. characteristics of cautious investor






30. Define capital gains taxes.






31. What is HIFO accounting?






32. What is core capital?






33. Any amount above core capital is considered what?






34. What is the most common estate planning tool?






35. benefits of IPS to client






36. What are ways that individuals can avoid probate?






37. What are investment objectives and constraints?






38. Equation for total wealth.






39. When calculating a required return - you typically must identify what?






40. What are the equity holding life risk attributes for an executive?






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






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






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






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






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






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






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






48. What are the different global tax regimes and their respective ordinary income tax structure?






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






50. What are the main types of investors?