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






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






3. benefits of IPS to client






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






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






6. four types of investors






7. What are the main types of investors?






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






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






10. What are the main characteristics of fixed annuities?






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






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






13. Describe asset segregation in a behavioral finance context.






14. Human capital is sometimes referred to as what?






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






16. What is intestate?






17. Describe a spontaneous investor personality type.






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






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






20. What is the most common estate planning tool?






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






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






23. What are the different stages of life?






24. Describe a methodical investor personality type.






25. benefits of IPS to manager






26. characteristics of accumulation phase






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






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






29. What are typical characteristics of passive recipients of wealth?






30. What are the psychological issues of low basis stock held by an entrepreneur?






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






32. As wealth increases...






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






34. What is measure of wealth?






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






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






37. What are the two sources of wealth?






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






39. characteristics of maintenance phase






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






41. What are wealth taxes.






42. What is core capital?






43. Describe a cautious investor personality type.






44. psychological profiling






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






46. Calculating the required return component is driven by what 2 elements?






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






48. What are the disadvantages of private exchange funds for low basis stock?






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






50. Describe an individualistic investor personality type.