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 are the advantages of an outright sale of low basis stock?






2. What is the reinvestment caveat when considering tax loss harvesting?






3. As wealth increases...






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






5. psychological profiling






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






7. characteristics of individualist investor






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






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






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






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






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






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






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






15. What are ways that individuals can avoid probate?






16. Describe an individualistic investor personality type.






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






18. What are the two sources of wealth?






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






20. Define capital gains taxes.






21. characteristics of cautious investor






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






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






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






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






26. What is the most common estate planning tool?






27. Describe a cautious investor personality type.






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






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






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






31. What are the main characteristics of chritable gifts?






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






33. What are the diffferent types of estate ownership rights?






34. Describe an individualistic investor personality type.






35. What is mortality risk?






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






37. 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?






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






39. Describe the different types of double taxation conflicts.






40. Any amount above core capital is considered what?






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






42. As wealth increases...






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






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






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






46. What are the different global tax regimes and their respective ordinary income tax structure?






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






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






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






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