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. As desire to leave an estate increases...






2. What are the different stages of life?






3. Describe asset segregation in a behavioral finance context.






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






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






6. Describe a cautious investor personality type.






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






8. characteristics of foundation stage






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






10. What is core capital?






11. characteristics of individualist investor






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






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






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






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






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






17. Investor questionnaires help to determine what?






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






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






20. characteristics of individualist investor






21. characteristics of distribution phase






22. characteristics of accumulation phase






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






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






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






26. What are the equity holding life risk attributes for an executive?






27. What are the different stages of life?






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






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






30. What is HIFO accounting?






31. What are the equity holding life risk attributes for an entrepreneur?






32. situational profiling






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






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






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






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






37. characteristics of maintenance phase






38. What are the advantages of an outright sale of low basis stock?






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






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






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






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






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






44. 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?






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






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






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






48. What are the diffferent types of tax jurisdictions?






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






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