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






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






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

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






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






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






7. Describe a cautious investor personality type.






8. situational profiling - considerations






9. 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?






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






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






12. stages of life






13. What are the advantages of public exchange funds for low basis stock?






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






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






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

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






18. What are the psychological issues of low basis stock held by an investor?






19. Define capital gains taxes.






20. What are the disadvantages of public exchange funds for low basis stock?






21. What is loss aversion?






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






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






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






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






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






27. What are the diffferent types of tax jurisdictions?






28. Describe an individualistic investor personality type.






29. What are the main characteristics of the maintenance phase of life?






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






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






32. characteristics of cautious investor

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33. How is mortality risk typically hedged?






34. benefits of IPS to manager






35. psychological profiling






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






37. situational profiling - considerations






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






39. template for return objective






40. four types of investors






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






42. Equation for total wealth.






43. characteristics of spontaneous investor

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44. What are the main characteristics of the distribution phase of life?






45. What are ways that individuals can avoid probate?






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






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






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






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






50. What is human capital?