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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 to obvious but it re-enforces your understanding as you take the test each time.
1. characteristics of accumulation phase






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






3. What are the different types of trusts?






4. As wealth increases...






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






6. What are the different types of trusts?






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






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






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






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






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






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






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






14. Describe asset segregation in a behavioral finance context.






15. As probability of death increases...






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






17. What are the two sources of wealth?






18. What is mortality risk?






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






20. situational profiling






21. What is measure of wealth?






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






23. What are ways that individuals can avoid probate?






24. What is loss aversion?






25. characteristics of distribution phase






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






27. What are the main characteristics of chritable gifts?






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






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






30. What are the main types of investors?






31. situational profiling - considerations






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






33. What is the general relationship b/t a client's perception of wealth and risk willingness?






34. What is intestate?






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






36. 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?






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






38. Describe a methodical investor personality type.






39. What is HIFO accounting?






40. characteristics of individualist investor






41. How is mortality risk typically hedged?






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






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






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






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






46. characteristics of spontaneous investor






47. characteristics of maintenance phase






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






49. characteristics of methodical investor






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