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 obvious, but you will see it re-enforces your understanding as you take the test each time.
1. typical IPS elements






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






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






4. What are the psychological issues of low basis stock held by an investor?






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






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






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






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






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






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






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






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






13. characteristics of maintenance phase






14. What is measure of wealth?






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






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






17. What progressive tax regimes do not have favorable treatment for interest income/dividend income/capital gains?






18. Human capital is sometimes referred to as what?






19. What are the diffferent types of tax jurisdictions?






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






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






22. characteristics of accumulation phase






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






24. How is mortality risk typically hedged?






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


26. What are the diffferent types of tax jurisdictions?






27. benefits of IPS to manager






28. psychological profiling






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






30. What is mortality risk?






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






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






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






34. Define capital gains taxes.






35. Describe biased expectations in a behavioral finance context.






36. Describe a spontaneous investor personality type.






37. situational profiling


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






39. What is core capital?






40. characteristics of spontaneous investor


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






42. As age increases..






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






44. What are ways that individuals can avoid probate?






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






46. What are typical characteristics of active wealth creators?






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






48. characteristics of methodical investor






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






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