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Private Wealth Management

Instructions:
  • Answer 50 questions in 15 minutes.
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  • 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. What are the diffferent types of estate ownership rights?

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






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






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






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






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






7. What are the diversification techniques for low basis stock?






8. What is intestate?






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






10. characteristics of accumulation phase






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






12. What is loss aversion?






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






14. What are wealth taxes.






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






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






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






18. What are the benefits of an IPS to the adviser?






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






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






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






22. psychological profiling






23. characteristics of individualist investor






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






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






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






27. What is tax alpha?






28. characteristics of distribution phase






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






30. characteristics of methodical investor






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






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






33. benefits of IPS to client






34. characteristics of maintenance phase






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






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






37. typical IPS elements






38. benefits of IPS to manager






39. Describe a methodical investor personality type.






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






41. What are the different stages of life?






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






43. characteristics of individualist investor






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






45. What is measure of wealth?






46. four types of investors






47. characteristics of accumulation phase






48. What are the two sources of wealth?






49. What are investment objectives and constraints?






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

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