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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 3 categories of investors when discussing concentrated positions?






2. What is tax alpha?






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






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






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






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






7. What is HIFO accounting?






8. What risks must be considered when discussing each concentrated investor category?






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






10. What are ways that individuals can avoid probate?






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






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






13. What is core capital?






14. Any amount above core capital is considered what?






15. What is the general relationship between tax drag% and tax rate with accrual taxes; and as investment horizon increases and return increases?






16. What are the main characteristics of chritable gifts?






17. characteristics of methodical investor






18. What are typical characteristics of active wealth creators?






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






20. What is the general relationship between tax drag% and tax rate with accrual taxes; and as investment horizon increases and return increases?






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






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






23. What is mortality risk?






24. characteristics of accumulation phase






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






26. characteristics of spontaneous investor






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






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






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






30. As age increases..






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






32. What is the most common estate planning tool?






33. Human capital is sometimes referred to as what?






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






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






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






37. What is human capital?






38. What is human capital?






39. What are the main characteristics of the foundation phase of life?






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






41. Describe a spontaneous investor personality type.






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






43. What are the different types of trusts?






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






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






46. What is typically considered when imposing an exit tax?






47. All costs associated with probate are born by whom?






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






49. Describe an individualistic investor personality type.






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