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. Describe a cautious investor personality type.






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






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






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






5. What is intestate?






6. What are the advantages of private exchange funds for low basis stock?






7. Describe a methodical investor personality type.






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






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






10. What is core capital?






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






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






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






14. What are the different types of trusts?






15. stages of life






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






17. characteristics of foundation stage






18. What is human capital?






19. What are the disadvantages of an outright sale of low basis stock?






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






21. Describe an individualistic investor personality type.






22. Human capital is sometimes referred to as what?






23. Describe biased expectations in a behavioral finance context.






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






25. What is core capital?






26. What are the main types of investors?






27. Define tax drag.






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






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






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






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






32. psychological profiling






33. What are typical characteristics of active wealth creators?






34. characteristics of distribution phase






35. Define tax drag.






36. An investor's ability to take risk depends on what?






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






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






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






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






41. What are ways that individuals can avoid probate?






42. How is mortality risk typically hedged?






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






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






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






46. characteristics of spontaneous investor






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






48. What are the two sources of wealth?






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






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