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






2. characteristics of accumulation phase






3. As age increases..






4. What are investment objectives and constraints?






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






6. Describe a cautious investor personality type.






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






8. Define capital gains taxes.






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






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






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






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






13. What are the main characteristics of fixed annuities?






14. Describe a spontaneous investor personality type.






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






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






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






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






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






20. Describe a methodical investor personality type.






21. Why would someone want to use a valuation discount?






22. What is core capital?






23. What are typical characteristics of active wealth creators?






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






25. What are the main characteristics of the foundation phase of life?






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






27. characteristics of methodical investor






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






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






30. What is human capital?






31. characteristics of spontaneous investor






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






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






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






35. What are the advantages of completion portfolios for low basis stock?






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






37. situational profiling - considerations






38. characteristics of distribution phase






39. characteristics of foundation stage






40. How is mortality risk typically hedged?






41. benefits of IPS to client






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






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






44. Equation for total wealth.






45. As wealth increases...






46. Describe the different types of double taxation conflicts.






47. What are the steps involved in creating an IPS?






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






49. What are typical characteristics of active wealth creators?






50. What is mortality risk?