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. As desire to leave an estate increases...






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






3. What is HIFO accounting?






4. Describe biased expectations in a behavioral finance context.






5. Describe a spontaneous investor personality type.






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






7. How does the nature of human capital affect the demand for life insurance?






8. What are the main types of investors?






9. Describe asset segregation in a behavioral finance context.






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






11. An investor's willingness to take risk is determined by what?






12. typical IPS elements






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






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






15. situational profiling






16. What is another name for a variable prepaid forward and What is its main purpose?






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






18. What is human capital?






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






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






21. What is loss aversion?






22. characteristics of spontaneous investor






23. template for return objective






24. What are investment objectives and constraints?






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






26. What is human capital?






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






28. What are the different stages of life?






29. benefits of IPS to manager






30. How is mortality risk typically hedged?






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






32. characteristics of methodical investor






33. What is measure of wealth?






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






35. What is measure of wealth?






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






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






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






39. What is intestate?






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






41. What is tax alpha?






42. What is the most common estate planning tool?






43. Describe biased expectations in a behavioral finance context.






44. What are typical characteristics of active wealth creators?






45. characteristics of methodical investor






46. benefits of IPS to manager






47. What are the different types of trusts?






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






49. What is the most common estate planning tool?






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