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Private Wealth Management

Instructions:
  • Answer 50 questions in 15 minutes.
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  • 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. situational profiling - considerations






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






3. What is core capital?






4. What are wealth taxes.






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






6. What is an equity collar? What is the purpose of the underlying positions






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






8. characteristics of methodical investor






9. What is HIFO accounting?






10. As probability of death increases...






11. Equation for total wealth.






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






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






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






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






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






17. Define capital gains taxes.






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






19. What is tax alpha?






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






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






22. What are investment objectives and constraints?






23. What are the psychological issues of low basis stock held by an executive?






24. What is mortality risk?






25. What is core capital?






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






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






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






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






30. Equation for total wealth.






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






32. Describe a cautious investor personality type.






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






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






35. What is loss aversion?






36. What are the different types of trusts?






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






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






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






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

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






42. What is measure of wealth?






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






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






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






46. characteristics of individualist investor






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

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48. What are the main characteristics of variable annuities?

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49. What are the main characteristics of fixed annuities?

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







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