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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. Describe biased expectations in a behavioral finance context.






2. As probability of death increases...






3. characteristics of distribution phase






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






5. Describe the different types of double taxation conflicts.






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






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






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






9. What is HIFO accounting?






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






11. Why would an individual try to use generation skipping in estate planning?






12. Define capital gains taxes.






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






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






15. What is tax alpha?






16. What are the different methods of relief from double taxation?






17. characteristics of individualist investor






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






19. What is mortality risk?






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






21. What is the general relationship between tax drag% and tax rate with accrual taxes; and as investment horizon increases and return increases?






22. situational profiling - considerations






23. What are the main characteristics of the maintenance phase of life?






24. Investor questionnaires help to determine what?






25. sources of wealth






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






27. 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?






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






29. Describe asset segregation in a behavioral finance context.






30. What are the two sources of wealth?






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






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






33. What is the general relationship between tax drag% and tax rate with accrual taxes; and as investment horizon increases and return increases?






34. What is tax alpha?






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






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






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






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






39. What are investment objectives and constraints?






40. Define tax drag.






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






42. characteristics of maintenance phase






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






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






45. Describe an individualistic investor personality type.






46. characteristics of foundation stage






47. Describe a cautious investor personality type.






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






49. What are the different stages of life?






50. Describe a spontaneous investor personality type.