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






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






3. characteristics of maintenance phase






4. benefits of IPS to client






5. psychological profiling






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






7. characteristics of methodical investor






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






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






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






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






12. Any amount above core capital is considered what?






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






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






15. characteristics of cautious investor






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






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






18. What are the two sources of wealth?






19. How is mortality risk typically hedged?






20. What are typical characteristics of active wealth creators?






21. As probability of death increases...






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






23. Describe biased expectations in a behavioral finance context.






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






25. characteristics of accumulation phase






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






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






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






29. typical IPS elements






30. What is intestate?






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






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






33. characteristics of individualist investor






34. What are the main characteristics of fixed annuities?






35. What are wealth taxes.






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






37. What are ways that individuals can avoid probate?






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






39. situational profiling






40. What is tax alpha?






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






42. What are the diffferent types of tax jurisdictions?






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






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






45. As wealth increases...






46. What is loss aversion?






47. As wealth increases...






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






49. situational profiling - considerations






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