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. characteristics of cautious investor


2. Any amount above core capital is considered what?






3. As wealth increases...






4. What are the diffferent types of tax jurisdictions?






5. What are the main characteristics of variable annuities?


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






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






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






9. Any amount above core capital is considered what?






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






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






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






13. As wealth increases...






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






15. characteristics of individualist investor






16. four types of investors






17. What are the main characteristics of fixed annuities?


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






19. template for return objective






20. What are the main characteristics of chritable gifts?






21. What is intestate?






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






23. What are the diffferent types of tax jurisdictions?






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






25. What is core capital?






26. What is the eifference in willingness to take risk between active and passive wealth creators?






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






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






29. Human capital is sometimes referred to as what?






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






31. characteristics of spontaneous investor


32. characteristics of distribution phase






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






34. What are the disadvantages of hedging for low basis stock?






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






36. Describe asset segregation in a behavioral finance context.






37. stages of life






38. Describe biased expectations in a behavioral finance context.






39. Describe asset segregation in a behavioral finance context.






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






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






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






43. characteristics of spontaneous investor


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






45. All costs associated with probate are born by whom?


46. Describe biased expectations in a behavioral finance context.






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






48. What are the disadvantages of completion portfolios for low basis stock?






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






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